Park Hotels & Resorts (PK) AI Stock Analysis

• Market Cap: $2.15B
• Dividend Yield: 13%
• Average Volume (3M): 3.45M
• Price to Earnings (P/E): 18.2
• Beta (1Y): 1.24
• Revenue Growth: -3.68%
• EPS Growth: 35.35%
• Country: US
• Employees: 91
• Sector: Real Estate
• Sector Strength: 57
• Industry: REIT - Hotel & Motel
• EPS (TTM): -0.29
• Shares Outstanding: 199,892,320
• 10 Day Avg. Volume: 3,128,371
• 30 Day Avg. Volume: 3,449,121
• PEG Ratio: -0.43
• Price to Book (P/B): 0.63
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.40
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: 0.21
• Enterprise Value/Gross Profit: 2.05
• Enterprise Value/Ebitda: 0.91
• 1Y Price Target: $11.40
• Price Target Upside: 5.85% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 10

• Rating: 71 Outperform
• Price Target: $12.50 ▲(16.06%Upside)

Park Hotels & Resorts demonstrates strong recovery trends and operational efficiency improvements, supported by a solid financial performance. Positive technical indicators suggest upward momentum, and the high dividend yield offers a compelling income opportunity. However, valuation concerns and challenges from macroeconomic factors and specific market weaknesses, as highlighted in the earnings call, temper the overall outlook.

Positive Factors

Capital Allocation

Continued belief in the merits of PK’s capital allocation strategies with earnings upside from its renovated assets, the Royal Palm project, and additional ROI opportunities.

Disposition Strategy

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

Share Price Potential

Expected share price return is 27.5%, suggesting a significant potential upside.

Negative Factors

Execution Risk

There is concern about execution risk due to depressed transaction volumes affecting the disposition program.

Financial Forecasts

2Q25E operating FFO decreases to $0.55 from $0.57, indicating a downward adjustment in financial expectations.

Labor and Renovation Costs

Labor costs and renovation disruption present some near-term pressure.

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 ownership and operation of hotel properties. The company earns income from room rentals, food and beverage sales, and other services provided within its hotels. Its key revenue streams include room revenues, which account for the majority of its income, followed by food and beverage sales. Additionally, Park Hotels & Resorts benefits from affiliations with major hotel brands, such as Hilton, which drive customer loyalty and brand recognition. These partnerships often involve franchise or management agreements, providing a structured revenue-sharing model. The company's strategic focus on upscale and luxury segments in prime locations allows it to capitalize on high demand and premium pricing, further enhancing its revenue potential. Park Hotels & Resorts also seeks opportunities to optimize its asset portfolio through renovations, dispositions, and strategic acquisitions, contributing to its financial growth.

Park Hotels & Resorts Financial Statement Overview

Summary

Park Hotels & Resorts has shown a solid recovery post-COVID with improving profitability and cash flow metrics. The income statement reflects moderate profitability, while the balance sheet highlights a stable financial position with improved leverage ratios. Positive cash flow metrics point to 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.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.60B	2.70B	2.50B	1.36B	852.00M
Gross Profit	745.00M	746.00M	693.00M	227.00M	-161.00M
EBITDA	594.00M	683.00M	573.00M	89.00M	-939.00M
Net Income	212.00M	97.00M	162.00M	-452.00M	-1.44B
Balance Sheet
Total Assets	9.16B	9.42B	9.73B	9.74B	10.59B
Cash, Cash Equivalents and Short-Term Investments	402.00M	717.00M	906.00M	688.00M	951.00M
Total Debt	4.79B	4.71B	4.85B	4.90B	5.37B
Total Liabilities	5.57B	5.65B	5.44B	5.34B	5.74B
Stockholders Equity	3.65B	3.81B	4.34B	4.45B	4.89B
Cash Flow
Free Cash Flow	202.00M	218.00M	241.00M	-191.00M	-524.00M
Operating Cash Flow	429.00M	503.00M	409.00M	-137.00M	-438.00M
Investing Cash Flow	-166.00M	-217.00M	87.00M	394.00M	119.00M
Financing Cash Flow	-573.00M	-475.00M	-320.00M	-475.00M	914.00M

Park Hotels & Resorts Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.77
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• 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 10.77 is above the 20-day moving average (MA) of 10.62, above the 50-day MA of 10.36, and below the 200-day MA of 11.76, indicating a neutral trend. The MACD of 0.21 indicates Positive momentum. The RSI at 54.38 is Neutral, neither overbought nor oversold. The STOCH value of 27.87 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	73 Outperform	$11.20B	16.73	10.12%	5.58%	7.52%	-5.25%
PK	71 Outperform	$2.15B	18.15	3.46%	13.00%	-3.68%	35.35%
APLE	71 Outperform	$2.94B	15.55	5.84%	8.18%	4.98%	-7.08%
DRH	66 Neutral	$1.65B	40.24	3.22%	4.03%	3.73%	-44.49%
Sector *	65 Neutral	£953.03M	13.94	2.04%	5.96%	11.04%	38.13%
RLJ	64 Neutral	$1.15B	28.92	2.92%	7.95%	2.82%	-8.08%
SHO	59 Neutral	$1.77B	91.83	1.66%	4.05%	-3.90%	-89.21%

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.

Park Hotels & Resorts Annual Meeting Outcomes

On April 25, 2025, Park Hotels & Resorts held its Annual Meeting where stockholders voted on several proposals. The election of nine directors was confirmed, with each director set to serve until the 2026 meeting. Additionally, stockholders approved the amended 2017 Stock Plan for Non-Employee Directors and ratified the appointment of Ernst & Young LLP as the independent accounting firm for the fiscal year ending December 31, 2025. The compensation for named executive officers was also approved on a non-binding basis.