Park Hotels & Resorts (PK) Is Down 8.0% After Lowering 2025 Guidance and Reporting Weaker Q3 Results

• Park Hotels & Resorts recently lowered its full-year 2025 earnings guidance and reported third-quarter results showing revenue of US$610 million and a net loss of US$16 million, both down from the previous year.
• The guidance revision and weaker quarterly performance signal ongoing softness in demand and operational challenges for the company as it works through portfolio changes.
• We'll explore how the revised earnings outlook could reshape expectations for Park Hotels & Resorts’ recovery and long-term growth narrative.

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Park Hotels & Resorts Investment Narrative Recap

To be a shareholder in Park Hotels & Resorts, you need conviction in the company’s ability to rebound from ongoing operational headwinds, including revenue softness and restructuring challenges, as well as management’s capacity to steer profitability back on track. The recent guidance cut and third-quarter loss reinforce that weak demand and asset transitions remain the short-term focus, with ongoing RevPAR pressure acting as both the key catalyst and the most material risk right now.

Among recent company developments, the guidance revision issued in late October stands out as the most relevant to near-term catalysts and risks, signaling expectations for a deeper annual net loss than previously projected. This adjustment highlights management’s view of further potential softness in revenue and operating income, making the path to meaningful earnings recovery even more dependent on demand stabilization across major core markets.

But investors should also be aware that rising debt maturities and refinancing risk could...

Read the full narrative on Park Hotels & Resorts (it's free!)

Park Hotels & Resorts is expected to generate $2.9 billion in revenue and $210.9 million in earnings by 2028. This outlook assumes a 3.6% annual revenue growth rate and a $153.9 million increase in earnings from the current level of $57.0 million.

Uncover how Park Hotels & Resorts' forecasts yield a $12.69 fair value, a 26% upside to its current price.

Exploring Other Perspectives

Four private fair value estimates from the Simply Wall St Community range from US$11.57 to US$19.60. While some see considerable upside, persistent RevPAR weakness and reduced guidance may challenge the pace of any recovery, so it pays to compare these different viewpoints.

Explore 4 other fair value estimates on Park Hotels & Resorts - why the stock might be worth as much as 94% more than the current price!

Build Your Own Park Hotels & Resorts Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Park Hotels & Resorts research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Park Hotels & Resorts research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Park Hotels & Resorts' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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