Stock Analysis

Park Hotels & Resorts (PK): Revisiting Valuation After Recent Share Price Weakness

Park Hotels & Resorts (PK) has had a rough stretch lately, but that drop in the share price is exactly why value focused investors are starting to take a closer look.

See our latest analysis for Park Hotels & Resorts.

With the share price now at $10.26 and a year to date share price return of negative 25.54%, recent weakness has reversed much of Park Hotels & Resorts' earlier three year total shareholder return of 10.86%. This suggests that momentum has been fading.

If PK's volatility has you rethinking your options, it could be a good moment to explore other real estate linked opportunities through fast growing stocks with high insider ownership.

With Park Hotels & Resorts trading at a sizeable discount to analyst targets but still facing weak recent returns, is this a contrarian value opportunity, or is the market already pricing in all the growth that lies ahead?

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Most Popular Narrative Narrative: 19.2% Undervalued

Compared with Park Hotels & Resorts' last close of $10.26, the most followed narrative points to a higher fair value, framing a potential upside path for patient investors.

Significant reinvestment and renovations in key resort and urban assets (e.g., Royal Palm South Beach, Hilton Hawaiian Village, Waldorf Astoria Orlando) are expected to drive outsized growth in RevPAR, occupancy, and EBITDA once projects stabilize, leveraging travelers' increasing desire for experiential and high-end accommodations likely supporting above market revenue and net margin expansion.

Read the complete narrative.

Want to see how steady growth, rising margins, and a reset profit multiple combine into this upside story? The bold earnings path behind that valuation may surprise you. Dive in to see which long term assumptions really power that fair value.

Result: Fair Value of $12.69 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, sustained weakness in Hawaii travel and sizeable 2026 refinancing needs could quickly challenge the upbeat renovation and margin expansion story.

Find out about the key risks to this Park Hotels & Resorts narrative.

Build Your Own Park Hotels & Resorts Narrative

If you see the story differently or want to dig into the numbers yourself, you can build a custom Park Hotels and Resorts view in under three minutes: Do it your way.

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.

Looking for more investment ideas?

Before you move on, make sure you tap into fresh opportunities across the market using powerful screeners on Simply Wall Street, so you do not miss what is next.

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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Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

About NYSE:PK

Park Hotels & Resorts

Park is one of the largest publicly-traded lodging real estate investment trusts (“REIT”) with a diverse portfolio of iconic and market-leading hotels and resorts with significant underlying real estate value.

Undervalued average dividend payer.

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