Park Hotels & Resorts (PK) AI Stock Analysis

• Market Cap: $2.35B
• Dividend Yield: 11.9%
• Average Volume (3M): 3.82M
• Price to Earnings (P/E): 44.4
• Beta (1Y): 1.29
• Revenue Growth: -3.19%
• EPS Growth: -81.33%
• Country: US
• Employees: 91
• Sector: Real Estate
• Sector Strength: 55
• Industry: REIT - Hotel & Motel
• EPS (TTM): -0.02
• Shares Outstanding: 199,913,500
• 10 Day Avg. Volume: 3,200,508
• 30 Day Avg. Volume: 3,815,500
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.73
• Enterprise Value/Revenue: 2.48
• Enterprise Value/Gross Profit: 10.69
• Enterprise Value/Ebitda: 14.17
• 1Y Price Target: $12.00
• Price Target Upside: 2.04% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7

• Rating: 62 Neutral
• Price Target: $11.50 ▼(-2.21% Downside)

Park Hotels & Resorts' overall score is driven by a solid financial recovery and effective cash management, despite high leverage concerns. The technical analysis suggests potential bearish sentiment, and valuation metrics indicate overvaluation, offset by a high dividend yield. The earnings call provided mixed signals, with strategic positives overshadowed by financial uncertainties and market challenges.

Positive Factors

Asset Disposition

PK sold the Hyatt Centric Fisherman's Wharf San Francisco for $80M at 64.0x EBITDA, showing progress on their $350M disposition program.

Cost Management

PK is executing well on the cost side, which has helped offset lower than expected revenue per available room.

Negative Factors

Labor Risks

High exposure to organized labor could pose risks, especially with upcoming hotel labor union negotiations.

Leverage and Valuation

Elevated net leverage of about 6x could keep the company’s valuation multiple low.

Market Challenges

The challenging environment in key markets like Hawaii is affecting Park Hotels & Resorts' operations.

Park Hotels & Resorts Business Overview & Revenue Model

Company Description

Park Hotels & Resorts (PK) is a leading real estate investment trust (REIT) specializing in the ownership of premium-branded hotels and resorts. The company operates in the hospitality sector, primarily focusing on acquiring, owning, and managing a diverse portfolio of hotels under well-known brands. Park Hotels & Resorts is committed to providing high-quality accommodations and services to both business and leisure travelers, leveraging its strategic locations and partnerships with major hotel brands to enhance guest experiences.

How the Company Makes Money

Park Hotels & Resorts generates revenue primarily through the operation of its hotel properties, which includes income from room bookings, food and beverage services, and other ancillary services offered at its locations. The company's revenue model is heavily reliant on occupancy rates and average daily rates (ADR) for its rooms. Additionally, the company benefits from long-term management agreements with major hotel brands, allowing it to leverage their marketing, loyalty programs, and operational expertise. Other significant revenue streams include event hosting, conference services, and partnerships with travel agencies and online booking platforms that help drive customer bookings. The company's focus on upscale and luxury hotel segments typically yields higher average rates compared to budget accommodations, contributing to a robust financial performance.

Park Hotels & Resorts Financial Statement Overview

Summary

Park Hotels & Resorts demonstrates a robust recovery trajectory post-COVID with improving profitability and cash flow metrics. The income statement shows moderate profitability, with a healthy gross profit margin of 41.0% and a net profit margin of 4.9%. The balance sheet reflects strength with improved leverage ratios, and positive cash flow metrics highlight efficient cash management. However, past high leverage remains an area to monitor.

Income Statement

The company has shown revenue recovery post-pandemic, with TTM revenue at $2.59 billion but a slight decline from the previous year. The gross profit margin for TTM is healthy at 41.0%, and the net profit margin is 4.9%, indicating modest profitability. EBIT and EBITDA margins for TTM are 11.5% and 17.5% respectively, reflecting operational efficiency improvements over time.

Balance Sheet

The balance sheet shows a stable position with stockholders’ equity of $3.49 billion contrasting with total liabilities of $5.47 billion. The debt-to-equity ratio has improved to 0.06 in TTM, showcasing reduced leverage. The equity ratio is a solid 39.2%, indicating a strong footing relative to assets. However, historical high debt levels remain a potential risk.

Cash Flow

Improved cash flow management is evident with a TTM operating cash flow of $423 million and a free cash flow of $263 million, notably higher than previous years. The free cash flow growth rate is strong, indicating effective capital expenditure management. The operating cash flow to net income ratio is favorable at 3.33, reflecting effective cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.59B	2.60B	2.70B	2.50B	1.36B	852.00M
Gross Profit	600.00M	745.00M	746.00M	693.00M	227.00M	-161.00M
EBITDA	453.00M	696.00M	683.00M	573.00M	89.00M	-939.00M
Net Income	127.00M	212.00M	97.00M	162.00M	-452.00M	-1.44B
Balance Sheet
Total Assets	8.90B	9.16B	9.42B	9.73B	9.74B	10.59B
Cash, Cash Equivalents and Short-Term Investments	233.00M	402.00M	717.00M	906.00M	688.00M	951.00M
Total Debt	222.00M	4.79B	4.71B	4.85B	4.90B	5.37B
Total Liabilities	5.46B	5.57B	5.65B	5.44B	5.34B	5.74B
Stockholders Equity	3.49B	3.65B	3.81B	4.34B	4.45B	4.89B
Cash Flow
Free Cash Flow	263.00M	202.00M	218.00M	241.00M	-191.00M	-524.00M
Operating Cash Flow	420.00M	429.00M	503.00M	409.00M	-137.00M	-438.00M
Investing Cash Flow	-173.00M	-166.00M	-217.00M	87.00M	394.00M	119.00M
Financing Cash Flow	-400.00M	-573.00M	-475.00M	-320.00M	-475.00M	914.00M

Park Hotels & Resorts Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.76
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PK, the sentiment is Positive. The current price of 11.76 is above the 20-day moving average (MA) of 11.05, above the 50-day MA of 10.86, and above the 200-day MA of 11.48, indicating a bullish trend. The MACD of 0.30 indicates Negative momentum. The RSI at 63.53 is Neutral, neither overbought nor oversold. The STOCH value of 83.64 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PK.

Park Hotels & Resorts Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
APLE	73 Outperform	$3.10B	17.27	5.54%	7.73%	2.42%	-13.51%
HST	72 Outperform	$11.83B	18.22	9.80%	5.23%	8.28%	-11.07%
SHO	66 Neutral	$1.80B	445.07	0.96%	3.80%	0.37%	-97.38%
Sector *	63 Neutral	$7.06B	13.54	-0.50%	6.96%	4.08%	-25.24%
PK	62 Neutral	$2.35B	44.39	1.58%	11.90%	-3.19%	-81.33%
DRH	61 Neutral	$1.76B	30.81	4.22%	4.91%	1.72%	-3.49%
RLJ	59 Neutral	$1.17B	36.77	2.53%	7.79%	1.42%	-20.13%

Park Hotels & Resorts Corporate Events

Park Hotels Updates 2025 Outlook After Hotel Sale

On June 2, 2025, Park Hotels & Resorts released an updated investor presentation reflecting recent operational statistics and a minor adjustment to its full-year 2025 outlook following the sale of the Hyatt Centric Fisherman’s Wharf hotel in May 2025. The company reported solid performance trends in its core markets, despite challenges such as economic uncertainty and renovation disruptions, and highlighted its ongoing efforts to enhance operational efficiencies and shareholder returns.

The most recent analyst rating on (PK) stock is a Hold with a $17.00 price target. To see the full list of analyst forecasts on Park Hotels & Resorts stock, see the PK Stock Forecast page.