Park Hotels & Resorts Journey to the Cloud

When pigs fly….

Expectations exceeded! Created an integration framework to ingest hundreds of thousands of financial transactions in under 2 hours Deployed ERP with Fixed Assets, AP and Project Financials in less than 6 months Became the de facto standard for quality and success within the Grant Thornton Oracle Practice Under budget, on time, happy client, happy system integrator

Agenda About Park Hotels & Resorts Financial system goals and challenges Why Oracle Why Grant Thornton Seamless integration successes

About Park Hotels & Resorts Spun off from Hilton in January 2017 Second largest publicly traded Lodging "REIT" Originally 67 hotels in 7 countries; currently 54 hotels in 4 countries Complex legal entity structure A true "startup"—Park Hotels & Resorts had 12 - 24 months to operate under a Transition Services Agreement ("TSA") with Hilton while developing new people, processes and systems "Owners" and "managers" Owners invest the capital to build, renovate, buy and sell hotels Managers earn a fee to operate the hotels including all finance and accounting operations

Financial systems goals Establish best-in-class integrated systems and processes that allow the company to deliver on its strategic objectives Create a single source of truth for financial data Exit the TSA with Hilton within the 12 to 24 month period

Financial systems challenges Managing large volumes of data from the hotel managers including monthly ledger uploads and monthly forecast updates REITs make financial decisions based on highly analyzed data so we needed the ability to slice and dice everything in real time and compare against 10+ year trends Limited IT resources Rapid deployment – 6 to 9 months

Why Oracle Park Hotels & Resorts wanted all of their financial data in a single platform (did not want to manage "bolt-ons") ERP – General Ledger, Accounts Payable, Fixed Assets, Procurement, Project Financials EPM – Financial Close and Consolidation ("FCC"), Planning and Budgeting ("PBC") Needed a true SaaS solution, rather than a ported on-premise solution in which product enhancements could continue seamlessly Wanted enhanced reporting built into the solution that allows users to slice and dice real time data in the cube

Why Grant Thornton Grant Thornton guided Park Hotels & Resorts through the software selection process bringing ERP subject matter expertise Grant Thornton has an integrated technology practice with subject matter experts that were engaged when needed (ICS PaaS integrations, Internal Audit for segregation of duties conversations, etc.) Leveraged trusted relationships, which parlayed into a very successful Oracle implementation for both parties

Oracle Practice solutions focus

Engagement successes Data management Integration Cloud Service ERP FCC PBC Procurement Accounts Payable

Data management Ability to ingest financial data from property managers in a simple, manageable, repeatable and reusable way Accelerated the period close process Differentiated Park Hotels & Resorts from other REITs in that they are now able to consume detail level transactions from each property manager Hundreds of thousands of records are processed on a monthly basis in a 2 hour period Ability to bring on additional property management companies quickly

Integration Cloud Service (ICS) More than two dozen potential integrations ICS cleanly and efficiently automated these integrations where possible Single point of management for integrations in/out of the ERP system Robust platform on which to grow – set up 3 new integrations in the first 3 months post go live!

Integration Cloud Service

ERP FCC PBC Using "Direct Connect", data moved between the 3 systems at scheduled times, making sure that the right people had the right data, at the right time Enabled a faster period close process by providing a platform to ingest large data volumes critical to the process Budget data is available in FCC so that it can be checked when periods are being closed   (Darren can help explain this part a little more, I wasn’t heavily involved in resolving this) One major challenge that we had to work through was reconciling (1) the differences between how the Close/Consolidations and FP&A teams viewed the data and (2) the differences between how FCCS and PBCS applications handle/model data, specifically around IC eliminations. Resolution ended up being adding alternate hierarchies in each of the applications to align the views and creating business rules in PBCS to mirror certain FCCS native elimination behavior.

Procurement Accounts Payable Completely overhauled the existing AP approval process to be more efficient, removed paper approvals, eliminated single points of failure Reduced manual entry by utilizing Optical Character Recognition ("OCR") Enabled Park Hotels & Resorts to closely look at their AP process through the development of a detailed dashboard and make significant efficiency improvements  

Procurement Accounts Payable

Procurement Accounts Payable

Procurement Accounts Payable

Procurement Accounts Payable

Speakers Kevin Barth Senior Manager Grant Thornton kevin.barth@us.gt.com Darren Robb SVP & CAO Park Hotels & Resorts drobb@pkhotelsandresorts.com

About Grant Thornton Office locations People Reach Partners 59 offices spread across 30 states and Washington D.C. More than 8,500 professionals in the U.S. Reach Partners Serve 36% of companies on the 2017 Fortune 500 list and 25% of companies on the Russell 2000 list 594 partners serving more than 8,000 clients in the nation Our services Revenue Assurance • Tax • Advisory GT U.S. net revenue equals $1.74 billion

Hear more from Grant Thornton Monday Wednesday 3:45 – 4:30 p.m. Moscone South—Room 157 Henkels & McCoy's journey to the cloud (CAS2953) Ken Fontenot, Grant Thornton; Aaron Bartfield, Henkels & McCoy 3:45 – 4:30 p.m. Moscone South—Room 159 Wells Enterprises' Oracle HCM Cloud transformation: Happy Birthday (CAS2924) Deron Stoecklein, Grant Thornton; Jasen Heaton, Wells Entreprises Tuesday Thursday 12:30 – 1:15 p.m. Moscone South—Room 155 Park Hotels & Resorts' journey to the cloud (CAS2795) Kevin Barth, Grant Thornton; Darren Robb, Park Hotels & Resorts 9:00 – 9:45 p.m. Park Central (Floor 2) - Concordia Integrating JD Edwards and Oracle Financial Consolidation and Close Cloud Service (CAS2719) Seth Chaikin, Grant Thornton; Patrick Hammen, Renewable Energy Group 3:45 – 4:30 p.m. Moscone South—Room 155 Customers succeed with Oracle ERP Cloud (CAS4154) Bill Behen, Grant Thornton; Kerri Keefer, Quest Oracle Community; Kevin Johnson, Ohio National Insurance Company 11:00 – 11:45 a.m. Moscone South—Room 153 Caesars Entertainment's successful transformation to Oracle ERP Financials Cloud (CAS2929) Matt Lavery, Grant Thornton 4:45 – 5:30 p.m. Moscone South—Room 157 Truckloads of compensation at Great Dane (CAS2648) Daniel Valencia, Grant Thornton Visit Grant Thornton’s kiosk in the ERP showcase for a chance to win an Apple Parrot Mambo Fly Drone!