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A Look At Park Hotels & Resorts (PK) Valuation After Mixed Recent Share Price Performance

Simply Wall St · 4d ago

How Park Hotels & Resorts stock looks after recent performance

Park Hotels & Resorts (PK) has seen mixed returns recently, with a 2.5% move over the past month and a small gain over the past 3 months, alongside a negative 1 year total return.

For income focused investors, it is also worth noting that Park operates as a lodging REIT. It holds 38 premium branded hotels and resorts with more than 24,000 rooms concentrated in city center and resort locations.

See our latest analysis for Park Hotels & Resorts.

With the share price at $10.83 and a 1 year total shareholder return of a 13% decline, the near flat 3 month share price performance contrasts with a stronger 3 year total shareholder return of 25%. This suggests momentum has cooled recently even as longer term holders still sit on gains.

If Park Hotels & Resorts has you thinking about where capital might work harder, this could be a good moment to scan fast growing stocks with high insider ownership for fresh ideas beyond the lodging REIT space.

With shares around $10.83, a 48% implied discount to one intrinsic value estimate and a 14.8% gap to analyst targets, the key question is whether PK is genuinely undervalued or if the market already reflects its future growth potential.

Most Popular Narrative: 14.7% Undervalued

With Park Hotels & Resorts last closing at $10.83 against a narrative fair value of $12.69, the current price sits below that narrative anchor, which is built on detailed forecasts for revenue, earnings and margins.

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, which is likely to support above-market revenue and net margin expansion.

Read the complete narrative.

Curious what kind of revenue path and margin reset sit behind that valuation gap, and what profit multiple the narrative leans on to get there? The full story lays out a detailed earnings ramp, a target profitability level and a valuation multiple that differs from today, all stitched together into one pricing blueprint.

Result: Fair Value of $12.69 (UNDERVALUED)

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

However, this depends on stronger travel demand and smoother refinancing. Weaker inbound tourism or tougher debt markets could quickly challenge that upbeat earnings path.

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

Build Your Own Park Hotels & Resorts Narrative

If this narrative does not quite fit how you see Park Hotels & Resorts, you can test the assumptions yourself and build a custom version in 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.