December 2024
Dear Stakeholders,
Park Hotels & Resorts Inc. (“Park” or the “Company”) is pleased to present our seventh annual Corporate Responsibility Report (“Report”), highlighting our 2023 initiatives. We are proud of Park’s progress over the past year as we continue to advance environmental stewardship, social impact, good governance practices and responsible risk management.
Climate change continues to have a significant impact on the economy. 2023 was the fifth warmest year on record, and the United States experienced 28 weather or climate-related disasters, each causing approximately $1 billion or more in damages – a 56% increase in such events from 2022, making 2023 the year with the highest number of billion-dollar disasters on record1. These events included severe weather, flooding, tropical cyclones, tornado outbreaks, winter storms, wildfires and a drought and heat wave. The increasing frequency and severity of these events underscore the urgency to tackle transition risks and decarbonization. Despite exposure to some of these events, including atmospheric river flooding in California, we are fortunate that Park did not have cause to file any insurance claims related to weather or climate disasters in 2023.
Resiliency is a central focus of our corporate responsibility program. In late 2022, we conducted high-level resiliency studies on all assets in our core portfolio, mapping out climate-related risks that could impact our locations by 2050. As a result of these findings, our risk management team implemented several resiliency initiatives during 2023 at our coastal assets most susceptible to climate-related events. At our South Florida and Hawaii locations, we added portable Tiger Dams as an inflatable barrier against storm surges and extreme weather flooding. We also completed building resiliency upgrades at one of our Key West properties, including the elevation of certain critical equipment and the installation of a sump pump in the lower levels of the 103-year-old hotel. Additionally, we added 2MWh of supplemental emergency power at our New Orleans property so that the hotel is better positioned to not only better serve all the guests, workers and emergency personnel who may stay at the property during natural disasters, but also better protect the property from microbial growth by powering conditioned air from emergency generators.
Our readiness extends beyond natural disasters. Our "Risk Binder" outlines best practices for mitigating various risks, including cybersecurity, personal safety and terrorism. We take great pride in our risk management program, believing that our proactive measures and collaboration with skilled management and external professionals enable us to overcome challenges and achieve positive results for our business, employees and the communities that we serve. Park's culture of risk management begins with our Board of Directors (“Board”) and extends to team members employed by our operating partners at our hotels and resorts via proactive communications, procedures and education.
On the environmental front, the Green Park Committee continues to work with our operating partners to implement sustainability best practices across our portfolio of hotels and resorts, as outlined in our proprietary Green Park Playbook and communicated to our hotel operating partners via webinars and newsletters. Our initiatives include implementing efficiency projects, monitoring and benchmarking environmental data, developing annual utility cost guidance, tracking building performance standards and procuring renewable energy. In 2023, we invested approximately $21 million in efficiency projects, including extensive retro-commissioning initiatives at our largest asset, the 2,860-room Hilton Hawaiian Village Waikiki Beach Resort. We certified six hotels with Energy Star for superior energy performance in 2023 and have certified six properties in 2024 as of the date of this Report. As a result of these efforts, we are proud to have been named an Energy Star Partner of the Year for Energy Management for the second consecutive year in 2024, making Park the only lodging company to earn this recognition for its energy management program.
During 2023, we reduced energy intensity by 11% from 2019, with a corresponding 10% decrease in GHG emissions intensity. Waste intensity per occupied room decreased by 22% from 2019, although waste diversion has declined since 2019, creating a focus area for us in the near term. Water intensity per occupied room increased by 10% from 2019, as 2023 portfolio-wide occupancy remained ten percentage points below peak 2019 levels. Renewables, including those from the grid, now account for 12% of our energy, an increase of two percentage points from 2022. To demonstrate our commitment to decarbonization and our internal 2030 goals, we achieved limited assurance of select environmental data for the 2023 performance year and are currently pursuing limited assurance of our new 2019 baseline year.
On the social side, the Diversity & Inclusion Steering Committee continued to help advance diversity, equity and inclusion (“DEI”) throughout our organization. In 2023, Park’s senior managerial leadership increased female representation by six percentage points to 31%. As part of our commitment to pay equity, we have conducted a thorough compensation analysis for gender and ethnicity during each of the last two years, which to date has confirmed no pay disparities within our organization. We plan to continue auditing our pay practices annually. We also continued to align the efforts of Park Cares, our charitable subcommittee, with the priorities of our Diversity & Inclusion Steering Committee, addressing social needs and supporting underserved populations.
On the governance side, we welcomed Terri McClements to our Board in January 2024. Ms. McClement’s appointment increases our female representation on the Board to 33%, underscoring our dedication to DEI. Out of the nine Board members, eight are classified as independent, further reinforcing our commitment to strong governance practices. Our Board’s diversity, subject matter expertise and public-company experience position us well to oversee Park’s management team and support Park’s long-term corporate responsibility strategy.
Park’s commitment to corporate responsibility has remained steadfast since we started our program in 2017. In August 2024, we renamed our managerial-level ESG Committee to the Corporate Responsibility Committee. This name change reflects our understanding that corporate responsibility encompasses a wide array of critical issues, from environmental stewardship, social impact and ethical governance to responsible risk mitigation and resiliency. In August 2024, we also amended our Environmental Policy, Human Rights Policy and Vendor Code of Conduct to reflect updated expectations in each discipline. Our Corporate Responsibility Committee will continue to uphold and enhance our standards and drive initiatives that contribute to long-term value for our stakeholders.
In closing, I want to express my sincere gratitude to our associates, partners and stakeholders who have supported our corporate responsibility initiatives. Your commitment and collaboration are instrumental in driving positive change. I look forward to continuing our progress and demonstrating our commitment to improving both local and global communities through our corporate responsibility efforts.
12023: A historic year of U.S. billion-dollar weather and climate disasters | NOAA Climate.gov
Thomas J. Baltimore, Jr.
Chairman, President and Chief Executive Officer
