Park Hotels & Resorts (PK): Valuation Insights After Weaker Q3 Results and Lowered Guidance

Park Hotels & Resorts (PK) reported a drop in third quarter numbers, with both sales and revenue down from last year. The company also lowered its full-year earnings guidance, indicating a more cautious approach for investors.

See our latest analysis for Park Hotels & Resorts.

Amid softer third quarter results and lowered full-year guidance, Park Hotels & Resorts has seen its share price bounce more than 5% over the past week, even as the year-to-date share price return remains down sharply. Over the last year, total shareholder return sits at -18.6%. However, long-term investors have still managed a modest 16% total return over three years. This highlights mixed momentum as the company navigates operational headwinds and ongoing portfolio adjustments.

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With its share price still below analyst targets and trading at a significant intrinsic discount, the big question for investors is whether Park Hotels & Resorts is undervalued or if the market has already accounted for future growth potential.

Most Popular Narrative: 15.9% Undervalued

Park Hotels & Resorts' most widely followed narrative suggests the fair value is $12.69, notably above its last closing price of $10.68. This gap has sharpened debate over whether current market pessimism undervalues the company’s future potential.

Strategic asset sales and portfolio reshaping, particularly the disposal of 18 non-core or underperforming hotels, are set to improve portfolio quality, lift average RevPAR, and expand net margins. These changes aim to drive higher long-term earnings and reduce revenue volatility as focus shifts to premium, high-growth properties.

Read the complete narrative.

Why does this narrative target a price above where shares currently trade? The secret sauce includes rising margins, more efficient capital allocation, and game-changing portfolio upgrades. Want to know how these ingredients stack up in the full investment thesis? There is a surprising set of assumptions powering this upbeat valuation outlook. See the reasoning that has analysts calling for upside.

Result: Fair Value of $12.69 (UNDERVALUED)

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

However, ongoing labor cost inflation and potential delays in Hawaii travel recovery could overshadow the company's upside if these pressures persist longer than expected.

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

Build Your Own Park Hotels & Resorts Narrative

If the current narrative doesn’t quite fit your view, or you’d rather dive deeper into the data on your own terms, you can build a fresh perspective in just a few 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.

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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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