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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on PK

Park Hotels & Resorts Inc.'s recent performance was positively driven by increased stakes from various investment firms. Boston Partners boosted its stake by 22.0%, while Capital Fund Management S.A. increased its stake by 39.1%. Additionally, Kestra Investment Management LLC lifted its stake by 563.5%. The company also announced its fourth-quarter and full-year 2025 earnings conference call, indicating transparency and communication with investors. Furthermore, Park Hotels & Resorts Inc. issued its annual Corporate Responsibility Report, highlighting its commitment to responsible risk management and social responsibility.

1.c. Company Highlights

2. Park Hotels & Resorts Inc. Delivers Solid Q4 and Full-Year 2025 Results

Park Hotels & Resorts Inc. reported a strong financial performance for the fourth quarter and full-year 2025, with RevPAR increasing by nearly 1% year-over-year to approximately $182, and 3% when excluding Royal Palm. The company's core portfolio delivered a 3.2% increase in RevPAR during the fourth quarter, or 5.7% excluding Royal Palm, outperforming the non-core portfolio by nearly 1,500 basis points. For the full-year 2025, the company's Adjusted EBITDA was not explicitly stated, but the actual EPS came out at $0.51, beating estimates of $0.48.

Publication Date: Feb -22

📋 Highlights
  • Non-Core Asset Sales:: $120M+ in non-core sales at 21x multiple, including Hyatt Centric Fisherman's Wharf and Capital Hilton joint venture exit.
  • Core Portfolio Outperformance:: 3.2% RevPAR growth (5.7% excluding Royal Palm), outperforming non-core by ~1,500 basis points in Q4 2025.
  • 2026 Capital Investment:: $230M-$260M planned, including $108M Royal Palm redevelopment and $1-2M renovation disruption impact at Hilton Hawaiian Village.
  • Hawaii Recovery:: 60% of lost convention center business replaced; 2% RevPAR growth and mid-single-digit EBITDA growth expected in 2026.
  • Dividend Yield & Guidance:: 8.5%+ annual yield at current prices; 2026 Adjusted EBITDA guidance of $580M-$610M and Adjusted FFO/share of $1.73-$1.89.

Revenue Growth and Margin Analysis

The company's revenue growth was driven by its core portfolio, which delivered a solid RevPAR increase. The core portfolio excluding Royal Palm continued to demonstrate meaningful operational strength, delivering a RevPAR increase of 6% to nearly $216. As Sean M. Dell'Orto, CFO, noted, "the properties have replaced about 60% of the lost business with in-house groups and about 20,000 room nights through crew business," indicating a strong recovery in the company's Hawaii properties.

Valuation Metrics and Dividend Yield

Park Hotels & Resorts Inc.'s valuation metrics indicate a relatively attractive dividend yield of 8.89%. The company's P/S Ratio stands at 0.89, and EV/EBITDA is 8.07. With the company's guidance for 2026 RevPAR growth ranging from flat to up 2%, and Adjusted FFO per share expected to be in the range of $1.73 to $1.89, the stock appears to be reasonably valued. Analysts estimate next year's revenue growth at 2.4%, which is in line with the company's guidance.

Outlook and Growth Prospects

The company's outlook for 2026 is positive, with a lower level of capital investment planned, ranging from $230 million to $260 million. The company expects renovation-related disruption at Hilton Hawaiian Village to be $1 million to $2 million in 2026, representing a 10 basis point impact to portfolio RevPAR. With a strong core portfolio and a focus on deleveraging and redeploying capital towards investments and share repurchases, Park Hotels & Resorts Inc. is well-positioned for growth.

Strategic Progress and Asset Disposition

The company has made significant progress in executing its strategic priorities, including the sale of non-core assets and the redevelopment of the Royal Palm. Thomas Jeremiah Baltimore, CEO, noted that the team has sold or disposed of 51 assets and is working aggressively to complete the remaining ones. With a goal to divest most non-core assets by 2026, the company is expected to reduce its debt and reinvest in its core portfolio, potentially leading to a rerating of the company and consideration for growth opportunities.

3. NewsRoom

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Park Hotels & Resorts: World Cup, Renovations, And A Timely Setup Could Unlock Value Soon

Feb -21

Source: seekingalpha.com

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Park Hotels & Resorts Inc. (PK) Q4 2025 Earnings Call Transcript

Feb -20

Source: seekingalpha.com

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Compared to Estimates, Park Hotels & Resorts (PK) Q4 Earnings: A Look at Key Metrics

Feb -20

Source: zacks.com

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Park Hotels & Resorts (PK) Q4 FFO and Revenues Surpass Estimates

Feb -20

Source: zacks.com

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Why an $8 Million Sale of Park Hotels Stock Stands Out After $609 Million in 2025 EBITDA

Feb -19

Source: fool.com

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Park Hotels & Resorts Inc. Reports Fourth Quarter and Full-Year 2025 Results and Announces Appointment of Sean M. Dell'Orto as Chief Operating Officer

Feb -19

Source: businesswire.com

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Unveiling Park Hotels & Resorts (PK) Q4 Outlook: Wall Street Estimates for Key Metrics

Feb -17

Source: zacks.com

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Park Hotels & Resorts (NYSE:PK) versus Douglas Emmett (NYSE:DEI) Critical Review

Feb -14

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.26%)

6. Segments

Rooms

Expected Growth: 2.5%

Park Hotels & Resorts Inc.'s 2.5% rooms growth is driven by increasing demand for luxury accommodations, strategic property renovations, and expansion into high-growth markets. Additionally, the company's focus on operational efficiency and effective revenue management strategies contribute to the growth. Furthermore, the growing trend of experiential travel and rising disposable incomes also support the segment's growth.

Food and Beverage

Expected Growth: 1.8%

Park Hotels & Resorts Inc.'s Food and Beverage segment growth of 1.8% is driven by increasing demand for luxury experiences, strategic hotel renovations, and expansion of F&B outlets. Additionally, the company's focus on enhancing customer experience through digital platforms and loyalty programs contributes to the growth. Furthermore, the rise in business travel and meetings, incentives, conferences, and exhibitions (MICE) also supports the segment's growth.

Ancillary Hotel

Expected Growth: 2.2%

The 2.2% growth in Ancillary Hotel segment of Park Hotels & Resorts Inc. is driven by increasing demand for experiential travel, strategic partnerships with travel companies, and investments in digital platforms to enhance customer experience. Additionally, the company's focus on premium amenities and services, such as food and beverage offerings, has contributed to the growth.

Other

Expected Growth: 1.5%

Park Hotels & Resorts Inc.'s 1.5% growth is driven by increasing demand for luxury travel, strategic acquisitions, and effective cost management. Additionally, the company's focus on renovating and rebranding its properties, as well as its strong balance sheet, contribute to its growth momentum.

7. Detailed Products

Luxury Accommodations

Park Hotels & Resorts offers luxurious rooms and suites in prime locations, providing guests with upscale amenities and exceptional service.

Meeting and Event Spaces

The company provides state-of-the-art meeting and event facilities, catering to corporate events, weddings, and social gatherings.

Dining and Nightlife

Park Hotels & Resorts features a range of restaurants, bars, and lounges, offering diverse culinary experiences and entertainment options.

Recreational Activities

The company offers a variety of recreational activities, including fitness centers, spas, and outdoor activities, to enhance the guest experience.

Loyalty Program

Park Hotels & Resorts' loyalty program rewards repeat guests with exclusive benefits, discounts, and personalized services.

8. Park Hotels & Resorts Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Park Hotels & Resorts Inc. faces moderate threat from substitutes, as customers have alternative accommodation options such as Airbnb, hostels, and vacation rentals.

Bargaining Power Of Customers

Park Hotels & Resorts Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's loyalty program and rewards scheme help to retain customers.

Bargaining Power Of Suppliers

Park Hotels & Resorts Inc. relies on various suppliers for goods and services, including food and beverage providers, linen suppliers, and maintenance contractors. While the company has some bargaining power, suppliers can still exert pressure on prices and terms.

Threat Of New Entrants

The hotel industry has high barriers to entry, including significant capital requirements, regulatory hurdles, and the need for specialized expertise. This limits the threat of new entrants to Park Hotels & Resorts Inc.

Intensity Of Rivalry

The hotel industry is highly competitive, with many established players and a high degree of price sensitivity. Park Hotels & Resorts Inc. faces intense rivalry from other hotel chains, independent hotels, and alternative accommodation providers.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 54.06%
Debt Cost 7.26%
Equity Weight 45.94%
Equity Cost 14.02%
WACC 10.37%
Leverage 117.70%

11. Quality Control: Park Hotels & Resorts Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Rithm Capital

A-Score: 7.1/10

Value: 7.1

Growth: 3.9

Quality: 5.9

Yield: 10.0

Momentum: 6.0

Volatility: 10.0

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Apple Hospitality REIT

A-Score: 6.3/10

Value: 6.9

Growth: 5.7

Quality: 5.7

Yield: 9.0

Momentum: 2.0

Volatility: 8.7

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Innovative Industrial Properties

A-Score: 6.1/10

Value: 6.8

Growth: 6.2

Quality: 8.2

Yield: 10.0

Momentum: 0.5

Volatility: 5.0

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Host Hotels & Resorts

A-Score: 6.1/10

Value: 5.1

Growth: 5.6

Quality: 5.6

Yield: 7.0

Momentum: 5.0

Volatility: 8.3

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Park Hotels & Resorts

A-Score: 6.1/10

Value: 8.2

Growth: 5.0

Quality: 4.8

Yield: 10.0

Momentum: 2.5

Volatility: 6.0

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Ryman Hospitality Properties

A-Score: 5.6/10

Value: 3.1

Growth: 7.0

Quality: 5.3

Yield: 6.0

Momentum: 3.5

Volatility: 8.7

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

11.06$

Current Price

11.06$

Potential

-0.00%

Expected Cash-Flows