Park Hotels & Resorts
PK
$15.56
+2.23%
Park Hotels & Resorts Inc. is a real estate investment trust (REIT) that owns a portfolio of upper-upscale and luxury hotels, primarily under the Hilton brand, with 20,467 rooms across 31 properties in the United States. As a spin-off from Hilton Worldwide in 2017, the company has strategically divested international and lower-quality assets to focus on high-quality hotels in domestic gateway markets, positioning itself as a pure-play U.S. lodging REIT. The current investor narrative centers on the company's recovery from pandemic-era disruptions, with a recent surge in stock price (up 37.8% over the past year) driven by improving travel demand and operational efficiencies, though concerns about high debt levels and a recent quarterly loss persist.…
PK
Park Hotels & Resorts
$15.56
Investment Opinion: Should I buy PK Today?
Based on the analysis, I rate PK as a Hold. The stock has strong momentum and a high-quality portfolio, but the high debt and stalled revenue growth warrant caution. The analyst consensus is 'hold' with an average target of $14.47, which is close to the current price of $14.88, implying limited upside from the mean. The high target of $20.00 offers potential, but the low target of $11.00 indicates significant downside risk.
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PK 12-Month Price Forecast
The AI assessment is neutral with medium confidence. The stock has strong momentum and a high-quality portfolio, but the recent revenue decline and high leverage create uncertainty. The forward P/E suggests the market expects a significant earnings recovery, which is plausible but not guaranteed. If revenue growth resumes and margins improve, the stance could be upgraded to bullish; if revenue declines further or debt issues escalate, it could be downgraded to bearish.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Park Hotels & Resorts's 12-month outlook, with a consensus price target around $15.63 and implied upside of +0.4% versus the current price.
Average Target
$15.63
0 analysts
Implied Upside
+0.4%
vs. current price
Analyst Count
—
covering this stock
Price Range
$11 - $21
Analyst target range
The target price range spans from a low of $11.00 to a high of $20.00, with the high target implying a 34.4% upside from the current price, likely assuming continued recovery in travel demand and successful debt reduction. The low target of $11.00 suggests a 26.1% downside, possibly pricing in a recession or prolonged weakness in the hotel sector. Recent ratings actions have been mixed, with Barclays downgrading from Overweight to Equal Weight in April 2026, while other firms maintained their ratings, indicating a lack of strong conviction in either direction.
Bulls vs Bears: PK Investment Factors
Park Hotels & Resorts presents a mixed picture: strong price momentum and a high-quality asset portfolio are countered by high debt, stalled revenue growth, and negative trailing earnings. The bull case hinges on continued recovery in travel demand and successful debt reduction, while the bear case focuses on potential economic slowdown and high leverage. Currently, the evidence slightly favors the bull side due to the strong operational improvement in Q1 2026 and attractive forward valuation, but the key tension is whether revenue growth can resume and justify the current valuation. If revenue growth accelerates and margins expand, the stock could re-rate higher; if not, the high debt and negative earnings could weigh on the stock.
Bullish
- Strong price momentum and relative strength: PK is up 37.8% over the past year and 30.4% over the last three months, significantly outperforming the S&P 500 (up 18.4% and 4.9% respectively). The stock sits near its 52-week high of $14.95, reflecting strong investor confidence in the recovery.
- Attractive valuation on forward earnings: With a forward P/E of 27.94 and analysts expecting EPS of $0.67 next year, the stock is trading at a reasonable multiple for a recovering REIT. The PEG ratio of 0.03 suggests the stock is undervalued relative to its expected growth, though this is partly due to the low base.
- High-quality asset portfolio in gateway markets: PK owns upper-upscale and luxury hotels under the Hilton brand, with 20,467 rooms in 31 US properties. The focus on domestic gateway markets provides a strong competitive position and potential for RevPAR growth as business travel recovers.
- Improving profitability trend: Q1 2026 showed a net income of $11 million (EPS $0.05) versus a net loss of $57 million in Q1 2025, a significant improvement. EBITDA margin improved to 20.6% in Q1 2026 from 20.6% a year ago, indicating operational leverage.
Bearish
- High debt and interest burden: Debt-to-equity ratio is 1.36, and interest expense was $51 million in Q1 2026, consuming a significant portion of EBITDA ($128 million). This leverage increases financial risk and limits flexibility, especially if rates stay high.
- Revenue growth stalled: Q1 2026 revenue of $622 million declined 1.3% year-over-year, breaking a trend of sequential growth. This suggests the recovery may be plateauing, which could disappoint investors expecting continued momentum.
- Negative trailing earnings and margins: The trailing P/E is negative (-7.37) due to a net loss of $11 million in Q1 2026 and a large loss in Q4 2025. Gross margin is only 1.97% (TTM), and net margin is -11.1%, indicating weak profitability.
- Analyst downgrade and mixed sentiment: Barclays downgraded PK from Overweight to Equal Weight in April 2026, and the consensus recommendation is 'hold' with a mean rating of 2.72. This reflects a lack of strong conviction in the stock's near-term upside.
PK Technical Analysis
Park Hotels & Resorts has exhibited a strong uptrend over the past year, with the stock price rising 37.8% from a year ago to $14.88 as of July 17, 2026. The current price is near the upper end of its 52-week range, sitting at 94.5% of the range (calculated as (14.88 - 9.84) / (14.95 - 9.84) = 0.945), indicating strong momentum and investor optimism. This positioning near the 52-week high suggests the market is rewarding the company's operational recovery, though it also raises the risk of overextension if fundamentals fail to keep pace.
Beta
1.34
1.34x market volatility
Max Drawdown
-18.9%
Largest decline past year
52-Week Range
$10-$16
Price range past year
Annual Return
+33.8%
Cumulative gain past year
| Period | PK Return | S&P 500 |
|---|---|---|
| 1m | +2.9% | +1.0% |
| 3m | +10.8% | +1.1% |
| 6m | +42.6% | +13.8% |
| 1y | +33.8% | +19.5% |
| ytd | +44.5% | +12.2% |
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PK Fundamental Analysis
Revenue for the most recent quarter (Q1 2026) was $622 million, a slight decline of 1.27% year-over-year, breaking a trend of sequential growth seen in prior quarters (Q2 2025: $672M, Q3 2025: $610M, Q4 2025: $629M). The company's revenue segments show a diversified mix, with occupancy contributing $356 million, food and beverage $182 million, ancillary hotel services $60 million, and other hotel revenue $24 million. The slight revenue dip suggests a potential plateau in the recovery, though the company's focus on high-quality assets may support long-term growth.
Quarterly Revenue
$622000000.0B
2026-03
Revenue YoY Growth
-1.3%
YoY Comparison
Gross Margin
7.4%
Latest Quarter
Free Cash Flow
$69000000.0B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is PK Overvalued?
Given that Park Hotels & Resorts reported a net loss of $11 million in Q1 2026, the trailing P/E ratio is negative (-7.37), making it unsuitable for valuation. Therefore, I selected the price-to-sales (P/S) ratio as the primary metric, which stands at 0.82 based on trailing twelve-month revenue. The forward P/E ratio of 27.94 suggests the market expects a return to profitability, with analysts estimating EPS of $0.67 for the next fiscal year, implying a significant earnings recovery.
PE
-7.4x
Latest Quarter
vs. Historical
Low-End
5-Year PE Range 4x~34x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
18.3x
Enterprise Value Multiple
Investment Risk Disclosure
Financial and operational risks are significant for PK. The company carries a debt-to-equity ratio of 1.36, and interest expense of $51 million in Q1 2026 consumed about 40% of EBITDA ($128 million). This high leverage increases vulnerability to rising interest rates and reduces financial flexibility. Additionally, the company reported a net loss of $11 million in Q1 2026 and a large loss in Q4 2025, indicating inconsistent profitability. Revenue declined 1.3% year-over-year in Q1 2026, suggesting a potential plateau in the recovery, which could pressure margins and cash flow. The current ratio of 0.28 indicates poor liquidity, though REITs typically rely on cash flows and credit lines rather than current assets.