Park Hotels & Resorts (PK) AI Stock Analysis

• Market Cap: $2.27B
• Dividend Yield: 13.1%
• Average Volume (3M): 3.92M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.03
• Revenue Growth: -3.57%
• EPS Growth: -104.55%
• Country: US
• Employees: 91
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Hotel & Motel
• EPS (TTM): -1.04
• Shares Outstanding: 201,398,440
• 10 Day Avg. Volume: 4,232,022
• 30 Day Avg. Volume: 3,917,163
• PEG Ratio: 0.03
• Price to Book (P/B): 0.66
• Price to Sales (P/S): 0.82
• P/FCF Ratio: 5.23
• Enterprise Value/Market Cap: 2.76
• Enterprise Value/Revenue: 2.47
• Enterprise Value/Gross Profit: 125.52
• Enterprise Value/Ebitda: 15.77
• 1Y Price Target: $11.88
• Price Target Upside: 5.51% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9
• EPS Forecast (FY): 0.22
• Revenue Forecast (FY): $2.53B

• Rating: 63 Neutral
• Price Target: $12.00 ▲(6.57% Upside)
• Action: Reiterated Date: 02/21/26
• Date: Action: Reiterated 02/21/26

The score is led by solid cash generation and an improved latest-period leverage profile, but is constrained by volatile profitability and a return to net losses. Technicals are mildly supportive with price above key moving averages and neutral momentum. Valuation is mixed—an attractive yield is offset by loss-driven negative P/E—while the earnings call points to a cautious 2026 setup with renovation and refinancing execution risk despite clear strategic progress in the core portfolio.

Positive Factors

Cash generation

Sustained positive operating and free cash flow through 2022–2025 (2025 FCF ≈$398M) provides durable internal funding for renovation programs, dividends and debt service. Reliable cash generation improves financial flexibility and supports multi-year capital allocation despite cyclical demand swings.

Improved leverage profile

Materially lower leverage in 2025 (debt-to-equity ≈0.07) strengthens balance-sheet resilience. A lighter debt load reduces refinancing pressure, raises tolerance for renovation disruption, and gives management capacity to execute strategic dispositions and redeploy capital without immediate liquidity strain.

Core portfolio & capital recycling

Concentrating assets on 21 core hotels while selling non-core has measurably improved revenue and margins. Core RevPAR and core EBITDA margin expansion, plus disciplined disposals, indicate sustainable higher-quality earnings and better long-term returns from a streamlined, premium portfolio.

Negative Factors

Profitability volatility & impairments

Large impairment-driven net losses in 2025 highlight asset-level volatility and earnings sensitivity to valuations. Episodic write-downs and negative EBITDA years undermine predictability of FFO and dividends, complicating long-term cash-return planning and investor confidence in run-rate profitability.

Refinancing and maturity risk

Concentrated maturities (~$1.4B) and assumed refinancing at higher rates materially raise recurring interest costs. Execution risk on large CMBS and mortgage maturities could strain cash flow coverage, limit discretionary CapEx or share returns if markets or timing worsen over the next 12–24 months.

Non-core drag and timing uncertainty

Remaining non-core assets still contribute meaningful EBITDA but sale timing is uncertain. Delays limit deleveraging and portfolio quality gains, prolong earnings drag from underperforming hotels, and increase exposure to cyclical demand and renovation disruption until dispositions complete.

Park Hotels & Resorts Business Overview & Revenue Model

Company Description

Park is the second largest publicly traded lodging REIT with a diverse portfolio of market-leading hotels and resorts with significant underlying real estate value. Park's portfolio currently consists of 60 premium-branded hotels and resorts with over 33,000 rooms primarily located in prime city center and resort locations.

How the Company Makes Money

Park Hotels & Resorts generates revenue primarily through the operation of its hotel properties, which includes room rentals, food and beverage sales, and event hosting services. The company's revenue model is heavily reliant on the occupancy rates of its hotels, as well as the average daily rate (ADR) charged to guests. Key revenue streams include direct bookings from guests, group and corporate event bookings, and partnerships with travel agencies and online travel platforms that facilitate reservations. Additionally, the company benefits from brand affiliations with major hotel chains, which can enhance visibility and attract a wider customer base. Seasonal travel trends and economic conditions also play a significant role in influencing the company's earnings.

Park Hotels & Resorts Financial Statement Overview

Summary

Cash flow is the key strength (positive OCF/FCF in 2022–2025; 2025 FCF ~$398M and improved interest coverage ~1.90) and the latest leverage profile is much better (2025 debt-to-equity ~0.07). Offsetting this, profitability is unstable—2025 swung to a net loss with negative EBITDA/EBIT after several profitable years—limiting confidence in earnings durability.

Income Statement

Revenue has generally recovered from 2020–2021 lows, with 2025 showing +15.8% growth versus 2024. However, profitability is volatile: after solid profitability in 2022–2024 (2024 net margin ~8.2%), 2025 swung back to a net loss (net margin ~-11.1%) with negative EBITDA margin (~-6.4%) and negative EBIT. This pattern suggests earnings are sensitive to the operating environment and/or one-time items, limiting confidence in run-rate profitability.

Balance Sheet

Leverage looks materially improved in 2025 with very low debt relative to equity (debt-to-equity ~0.07) and equity of ~$3.1B against ~$7.7B of assets, which supports balance-sheet resilience. That said, prior years show meaningfully higher leverage (debt-to-equity ~1.1–1.3 during 2020–2024), and returns on equity have been modest in profitable years (roughly ~2.5%–5.8%) and negative in downturns—highlighting cyclicality and inconsistent shareholder returns.

Cash Flow

Cash generation is a relative strength: operating cash flow and free cash flow are positive in 2022–2025, with 2025 free cash flow of ~$398M and a sharp rebound in free cash flow growth. Cash flow also covered interest meaningfully better in 2025 (coverage ~1.90) than in 2022–2024 (generally below 1.0). The main weakness is volatility—cash flow was negative in 2020–2021 and free cash flow has not been consistently growing year-to-year.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.54B	2.60B	2.70B	2.50B	1.36B
Gross Profit	50.00M	745.00M	746.00M	693.00M	227.00M
EBITDA	333.00M	696.00M	683.00M	689.00M	89.00M
Net Income	-283.00M	212.00M	97.00M	162.00M	-459.00M
Balance Sheet
Total Assets	7.70B	9.16B	9.42B	9.73B	9.74B
Cash, Cash Equivalents and Short-Term Investments	232.00M	402.00M	717.00M	906.00M	688.00M
Total Debt	4.26B	4.79B	4.71B	4.85B	4.98B
Total Liabilities	4.62B	5.57B	5.65B	5.44B	5.34B
Stockholders Equity	3.13B	3.65B	3.81B	4.34B	4.45B
Cash Flow
Free Cash Flow	398.00M	202.00M	218.00M	241.00M	-191.00M
Operating Cash Flow	398.00M	429.00M	503.00M	409.00M	-137.00M
Investing Cash Flow	-209.00M	-166.00M	-217.00M	87.00M	394.00M
Financing Cash Flow	-365.00M	-573.00M	-475.00M	-320.00M	-475.00M

Park Hotels & Resorts Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.26
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 11.26 is below the 20-day moving average (MA) of 11.28, above the 50-day MA of 11.13, and above the 200-day MA of 10.77, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 49.98 is Neutral, neither overbought nor oversold. The STOCH value of 31.56 is Neutral, 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
HST	72 Outperform	$13.68B	18.08	11.62%	4.90%	6.45%	3.79%
APLE	67 Neutral	$2.86B	16.47	5.47%	8.30%	0.57%	-13.58%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
DRH	65 Neutral	$2.05B	38.39	3.98%	5.13%	0.95%	-8.40%
PK	63 Neutral	$2.27B	-7.90	-8.38%	13.10%	-3.57%	-104.55%
XHR	62 Neutral	$1.49B	24.37	4.58%	3.71%	4.29%	141.01%
SHO	57 Neutral	$1.76B	1,006.52	0.88%	3.98%	3.04%	-98.77%

Park Hotels & Resorts Corporate Events

Park Hotels Elevates Dell’Orto, Revamps Executive Incentives

On February 12, 2026, Park Hotels & Resorts’ board appointed long-time finance chief Sean M. Dell’Orto as chief operating officer, expanding his remit while raising his base salary and incentive targets, a move that consolidates leadership as the company intensifies portfolio repositioning and capital deployment. The compensation committee simultaneously overhauled executive long- and short-term incentive plans effective 2026, adding a RevPAR-based performance metric alongside relative total shareholder return, shifting the mix between performance-based and time-based equity, and materially increasing LTIP and bonus targets for the CEO and executive vice presidents, signaling a stronger emphasis on growth, operating performance and shareholder returns despite recent net losses driven by impairments on Non-Core hotels.

Park also reported that in the fourth quarter and full year 2025 it posted adjusted EBITDA of $152 million and $609 million, respectively, while a series of impairment charges tied to Non-Core assets drove net losses of $204 million for the quarter and $277 million for the year, even as Core RevPAR rose and select flagship properties such as Hilton Hawaiian Village and the Bonnet Creek complex delivered robust growth. Over 2025 and into early 2026, the company spent nearly $300 million on renovations, exited or surrendered six Non-Core hotels for more than $132 million in proceeds, expanded and extended its revolving and term loan facilities, and highlighted strong return profiles at recently renovated assets, positioning its streamlined Core portfolio to benefit from expected demand tied to major upcoming events and constrained new supply, while acknowledging macro and geopolitical risks that could temper travel visibility.

The most recent analyst rating on (PK) stock is a Hold with a $11.00 price target. To see the full list of analyst forecasts on Park Hotels & Resorts stock, see the PK Stock Forecast page.

Park Hotels & Resorts Updates Investor Strategy

On December 9, 2025, Park Hotels & Resorts released an updated investor presentation highlighting its strategy to dispose of non-core hotels, which is expected to enhance the growth and quality of its core portfolio. The company has made significant strides in reshaping its portfolio, focusing on its core hotels, which are projected to deliver higher revenue per available room (RevPAR) and profit margins. This strategic move is anticipated to improve the company’s valuation and provide substantial earnings upside, benefiting stakeholders by potentially increasing returns and reducing leverage.

The most recent analyst rating on (PK) stock is a Hold with a $10.50 price target. To see the full list of analyst forecasts on Park Hotels & Resorts stock, see the PK Stock Forecast page.