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Hold Rating on Park Hotels & Resorts Amid Renovation Disruptions and Cost Pressures

Hold Rating on Park Hotels & Resorts Amid Renovation Disruptions and Cost Pressures

Park Hotels & Resorts (PKResearch Report), the Real Estate sector company, was revisited by a Wall Street analyst today. Analyst Ari Klein from BMO Capital maintained a Hold rating on the stock and has a $15.00 price target.

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Ari Klein’s rating is based on an analysis of several financial factors affecting Park Hotels & Resorts. The company’s fourth-quarter EBITDA modestly exceeded expectations, but the guidance for 2025 was lighter than anticipated, largely due to renovation disruptions and an asset sale. Despite these challenges, the implied margin decline was viewed as reasonable, particularly in the context of recent union contract renewals.
Klein also noted that the 2025 adjusted FFO guidance fell below both BMO’s estimates and the consensus, with expected RevPAR and EBITDA figures not meeting the projected expectations. The anticipated increase in comparable expenses and the predicted decline in Hotel EBITDA margins reflect ongoing cost pressures. Additionally, disruptions from renovations and previous strike impacts were considered in the guidance. These elements combined to support a Hold rating, reflecting a cautious but not overly negative outlook on the stock.

In another report released yesterday, Morgan Stanley also maintained a Hold rating on the stock with a $16.00 price target.

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