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Park Hotels & Resorts (PK)
NYSE:PK
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Park Hotels & Resorts
(NYSE:PK)
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Rating:58Neutral
Price Target:
$12.50
â–²(4.34% Upside)
The overall stock score of 58 reflects a mixed outlook for Park Hotels & Resorts. Financial performance is challenged by declining revenue and high debt levels, while technical indicators show positive momentum. The valuation is high, but the dividend yield is attractive. The earnings call provided some positive insights, but challenges remain in certain markets.
Positive Factors
Cost Management
Effective cost management with minimal expense growth enhances operational efficiency, supporting long-term profitability and financial stability.
Asset Disposition
Successful asset sales improve liquidity and focus on core assets, enhancing strategic flexibility and long-term growth potential.
Insurance Premium Reduction
Significant insurance savings reduce operational costs, improving cash flow and profitability, and providing a competitive edge.
Negative Factors
Declining Revenue
Declining revenue growth indicates challenges in market demand and competitive positioning, potentially impacting long-term financial health.
High Debt Levels
High debt levels increase financial risk and limit flexibility, potentially affecting the company's ability to invest in growth opportunities.
Hawaii Market Challenges
Challenges in the Hawaii market due to weaker travel demand and labor issues may hinder revenue recovery and growth in a key region.
Park Hotels & Resorts (PK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.39B
Dividend Yield11.69%
Average Volume (3M)3.51M
Price to Earnings (P/E)45.2
Beta (1Y)1.30
Revenue Growth-3.19%
EPS Growth-81.33%
CountryUS
Employees91
SectorReal Estate
Sector Strength53
IndustryREIT - Hotel & Motel
Share Statistics
EPS (TTM)-0.02
Shares Outstanding199,913,500
10 Day Avg. Volume3,256,317
30 Day Avg. Volume3,514,093
Financial Highlights & Ratios
PEG Ratio0.10
Price to Book (P/B)0.80
Price to Sales (P/S)1.12
P/FCF Ratio14.42
Enterprise Value/Market Cap2.68
Enterprise Value/Revenue2.49
Enterprise Value/Gross Profit9.71
Enterprise Value/Ebitda13.80
Forecast
1Y Price Target
$11.97Price Target Upside-0.08% Downside
Rating ConsensusHold
Number of Analyst Covering9
Park Hotels & Resorts Business Overview & Revenue Model
Company DescriptionPark 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 MoneyPark 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 Key Performance Indicators (KPIs)
Park Hotels & Resorts Earnings Call Summary
Earnings Call Date:Jul 31, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong performance in key resort markets, effective cost management, and progress in strategic asset dispositions. However, ongoing challenges in Hawaii and an expected decline in Q3 RevPAR due to softer group demand offset some positive trends.Q2-2025 Updates
Positive Updates
Strong RevPAR Growth in Key Markets
RevPAR for Bonnet Creek complex increased nearly 12% year-over-year, with the Waldorf Astoria seeing a 24% increase. Key West's Casa Marina resort reported a nearly 4% year-over-year increase in RevPAR, while Puerto Rico saw a nearly 18% increase.
Cost Management and Expense Control
Total expense growth was just 40 basis points for the quarter, or 1% excluding Royal Palm South Beach, marking the second consecutive quarter with minimal expense growth.
Successful Asset Disposition
Sale of the Hyatt Centric Fisherman's Wharf for $80 million at a multiple of 64x 2024 EBITDA, progressing towards the $300 million to $400 million noncore disposition goal.
Positive Insurance Premium Reduction
Achieved a sector-leading 25% reduction in property insurance premiums, resulting in an incremental $5 million in savings through year-end.
Record-Setting Revenue at Bonnet Creek
Bonnet Creek complex delivered record-setting revenue for Q2, with Waldorf Astoria Orlando recognized as the Fourth Best Resort in Florida by Travel and Leisure.
Negative Updates
Challenges in Hawaii Market
Combined RevPAR at two Hawaii properties declined by approximately 12% during the quarter due to weaker inbound international travel and labor strike recovery.
Weak Q3 RevPAR Forecast
Q3 RevPAR is expected to decline by approximately 4% to 5% due to softer-than-anticipated group demand and weaker leisure transient demand.
Labor Strike Impact
Hilton Hawaiian Village continues to recover from last year's labor strike, contributing to a 375 basis point drag on portfolio performance.
Company Guidance
During the Park Hotels & Resorts Second Quarter 2025 Earnings Conference Call, the company provided numerous metrics reflecting both past performance and future expectations. RevPAR for Q2 was largely stable year-over-year when excluding the Royal Palms South Beach, with strong performances in resort markets such as Orlando, Key West, and Puerto Rico. Total expenses grew by only 40 basis points, or 1% excluding the Royal Palm, marking a second consecutive quarter of minimal expense growth. The company anticipated $5 million in savings through a 25% reduction in property insurance premiums. Capital allocation included the successful sale of Hyatt Centric Fisherman’s Wharf for $80 million at a 64x 2024 EBITDA multiple and plans for further noncore asset dispositions. The company projected a 3% to 5% RevPAR growth in Q4 despite a 4% to 5% expected decline in Q3 RevPAR. Adjusted EBITDA for the quarter reached $183 million, while adjusted FFO per share was $0.64. Full-year RevPAR guidance was adjusted to a range of negative 2% to flat growth, with adjusted EBITDA forecast raised to $620 million at the midpoint, and adjusted FFO per share increased to $1.95.Park Hotels & Resorts Financial Statement Overview
Summary
Park Hotels & Resorts shows a robust recovery trajectory post-COVID with improving profitability and cash flow metrics. The income statement indicates moderate profitability, while the balance sheet reflects strength with improved leverage ratios. Positive cash flow metrics highlight efficient cash management, though past high leverage remains a concern.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.45
Neutral
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.55
Neutral
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.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.58B | 2.60B | 2.70B | 2.50B | 1.36B | 852.00M |
| Gross Profit | 661.00M | 745.00M | 746.00M | 693.00M | 227.00M | -161.00M |
| EBITDA | 465.00M | 696.00M | 683.00M | 573.00M | 89.00M | -939.00M |
| Net Income | 58.00M | 212.00M | 97.00M | 162.00M | -452.00M | -1.44B |
Balance Sheet | ||||||
| Total Assets | 8.87B | 9.16B | 9.42B | 9.73B | 9.74B | 10.59B |
| Cash, Cash Equivalents and Short-Term Investments | 347.00M | 402.00M | 717.00M | 906.00M | 688.00M | 951.00M |
| Total Debt | 4.79B | 4.79B | 4.71B | 4.85B | 4.90B | 5.37B |
| Total Liabilities | 5.48B | 5.57B | 5.65B | 5.44B | 5.34B | 5.74B |
| Stockholders Equity | 3.44B | 3.65B | 3.81B | 4.34B | 4.45B | 4.89B |
Cash Flow | ||||||
| Free Cash Flow | 265.00M | 202.00M | 218.00M | 241.00M | -191.00M | -524.00M |
| Operating Cash Flow | 414.00M | 429.00M | 503.00M | 409.00M | -137.00M | -438.00M |
| Investing Cash Flow | -90.00M | -166.00M | -217.00M | 87.00M | 394.00M | 119.00M |
| Financing Cash Flow | -461.00M | -573.00M | -475.00M | -320.00M | -475.00M | 914.00M |
Park Hotels & Resorts Technical Analysis
Positive
11.98
Price Trends
11.27
Positive
10.75
Positive
11.36
Positive
Market Momentum
0.24
Positive
58.00
Neutral
64.96
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 11.98 is above the 20-day moving average (MA) of 11.90, above the 50-day MA of 11.27, and above the 200-day MA of 11.36, indicating a bullish trend. The MACD of 0.24 indicates Positive momentum. The RSI at 58.00 is Neutral, neither overbought nor oversold. The STOCH value of 64.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PK.
Park Hotels & Resorts Risk Analysis
Park Hotels & Resorts disclosed 32 risk factors in its most recent earnings report. Park Hotels & Resorts reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Park Hotels & Resorts Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | 11.98B | 18.44 | 9.93% | 5.17% | 8.28% | -11.07% | |
71 Outperform | 2.96B | 16.74 | 5.66% | 8.08% | 2.42% | -13.51% | |
67 Neutral | 1.71B | 29.99 | 4.15% | 5.06% | 1.72% | -3.49% | |
66 Neutral | 1.86B | 465.73 | 1.02% | 3.68% | 0.37% | -97.38% | |
59 Neutral | 1.17B | 37.20 | 2.98% | 7.82% | 1.42% | -20.13% | |
58 Neutral | $2.39B | 45.22 | 1.58% | 11.69% | -3.19% | -81.33% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% |
* Real Estate Sector Average
Performance Comparison
PK
Park Hotels & Resorts
11.98
-1.70
-12.43%
DRH
Diamondrock
8.30
-0.30
-3.49%
SHO
Sunstone Hotel
9.78
-0.52
-5.05%
HST
Host Hotels & Resorts
17.42
-0.21
-1.19%
XHR
Xenia Hotels & Resorts
14.78
0.17
1.16%
APLE
Apple Hospitality REIT
12.50
-1.62
-11.47%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.