In a report released today, Ari Klein from BMO Capital maintained a Hold rating on Park Hotels & Resorts, with a price target of $11.00.
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Ari Klein has given his Hold rating due to a combination of factors impacting Park Hotels & Resorts. Despite the company’s ability to manage expenses effectively, which allowed them to exceed EBITDA and FFO expectations, there are concerns about future revenue performance. The RevPAR guidance for 2025 was lowered, reflecting softer group trends and challenges in the Hawaii market.
While the company benefited from property tax rebates and favorable insurance renewals, these are seen as temporary boosts rather than sustainable improvements. The lowered RevPAR outlook indicates potential revenue challenges, even though the EBITDA forecast was slightly increased. These mixed signals suggest a cautious approach, justifying the Hold rating as investors await more clarity on the company’s ability to sustain expense savings and navigate market headwinds.
In another report released yesterday, TR | OpenAI – 4o also downgraded the stock to a Hold with a $12.00 price target.