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what it is
Park Hotels owns 40 U.S. hotels and resorts, then collects room, food, and event revenue from travelers who can still afford the minibar.
how it gets paid
Last year Park Hotels made $2.5B in revenue. Hilton-branded hotels was the main engine at $1.06B, or 42% of sales.
why growth slowed
Revenue fell 2.2% last year. RevPAR of $180.93 matters most because hotel owners live and die by room pricing and occupancy.
what just happened
The latest quarter showed $1.9B in revenue and EPS of -$0.40, a bad mix for a stock selling income.
At a glance
B balance sheet — gets the job done, barely
10/100 earnings predictability — expect surprises
46.4x trailing p/e — you're paying up for this one
10.9% dividend yield — cash in your pocket every quarter
1.2% return on capital — nothing to write home about
xvary composite: 42/100 — below average
What they do
Park Hotels owns 40 U.S. hotels and resorts, then collects room, food, and event revenue from travelers who can still afford the minibar.
You are not buying generic hotel boxes. You are buying 40 upper-upscale and luxury U.S. hotels tied to major brands, including 17 Hilton flags, in markets like New York, Orlando, San Francisco, and Puerto Rico. Scarcity matters here: replacing a resort in Waikiki or a big-city convention hotel takes years and heavy capital, which is why Park could spend nearly $70 million on upgrades in one quarter and still be working on assets competitors cannot easily copy.
How they make money
$2.5B
annual revenue · their business grew -2.2% last year
Hilton-branded hotels
$1.06B
DoubleTree hotels
$0.44B
Marriott-branded hotels
$0.31B
Embassy Suites and Hyatt hotels
$0.38B
Curio, Signia, and Waldorf Astoria hotels
$0.31B
The products that matter
owns and operates hotels
Hotel portfolio
$2.5B · entire business
it's the full $2.5B revenue base, and it produced an 8.8% net margin last year after revenue slipped 2.2%.
8.8% net margin
cash distribution engine
Dividend
10.9% yield
the dividend is the main reason many investors look at PK, but a 10.9% yield paired with 10/100 predictability tells you this payout will be scrutinized every quarter.
income thesis
future earnings recovery
EPS rebound
$0.40 fy2026 est
the current earnings estimate is just $0.40 per share, so the stock needs cleaner operating recovery to make the valuation and dividend feel comfortable.
watch closely
Key numbers
10.9%
dividend yield
You are being paid a very high yield, which usually means the market doubts it lasts.
1.3%
operating margin
Operating margin → plain English → so what: after running the hotels, Park is losing money on operations, which makes the dividend look less comfortable.
$2.5B
annual revenue
This is a real asset base with scale, but sales still fell 2.2% vs. prior year, so size alone is not saving growth.
1.45
beta
Beta → plain English → so what: the stock tends to swing more than the market, so you should expect sharper moves both up and down.
Financial health
B
strength
- balance sheet grade B — adequate — nothing special
- risk rank 3 — safer than 50% of stocks
- price stability 45 / 100
- net profit margin 8.8% — keeps 9 cents of every dollar in revenue
B — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in PK 3 years ago → it's now worth $12,440.
The index would have given you $13,920.
source: institutional data · total return
What just happened
missed estimates
The latest quarter showed $1.9B in revenue and EPS of -$0.40, a bad mix for a stock selling income.
Last earnings were reported at -$1.04 versus a $0.09 estimate, while comparable RevPAR fell 6.1% to $180.93. Stronger performance in San Francisco, Puerto Rico, New York, Orlando, and New Orleans only partly offset the broader softness.
$1.9B
revenue
$0.40
eps
$180.93
comparable revpar
the number that mattered
RevPAR of $180.93 matters most because hotel owners live and die by room pricing and occupancy, and this figure fell 6.1% vs. prior year.
-
comparable revpar was $180.93, a decrease of 6.1% compared to the prior-year period, or a 4.9% decrease when excluding the royal palm south beach miami, which suspended operations in mid-may for a renovation.softer leisure and government transient demand compounded an anticipated decrease in group demand, owing to difficult comparisons in many markets, including hawaii, new orleans, washington d.c. and san diego.
-
these headwinds were partially offset by strong performance at hotels in san francisco, puerto rico, new york, orlando and key west, as combined comparable revpar across these markets increased over 4% compared to the prior-year period.leadership remains focused on reshaping the portfolio through noncore asset dispositions while strengthening the balance sheet. in late september, the company permanently closed the embassy suites kansas city plaza and terminated its ground lease, returning the property to the ground lessor. that same month, the reit increased its liquidity to $2.1 billion to address maturing loans while continuing to invest in its core portfolio. in addition to the project at the royal palm in miami, significant renovations remain ongoing at park’s two hawaii resorts and the hilton new orleans riverside.
-
during the third quarter, the reit spent nearly $70 million on capital improvements at its hotels.leadership expects full-year investment to reach between $280 million and $300 million, with the intent of generating higher development yields than would otherwise be achieved through acquisition.
-
park hotels & resorts shares are ranked 4 (below average) for timeliness.
-
however, with the stock having retreated nearly 10% in value since our september report, total-return potential out to 2028-2030 from the recent quotation is fairly interesting, given the generous high-single-digit dividend yield.
source: company earnings report, 2025
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What could go wrong
the #1 risk here is hotel demand staying soft long enough to pressure a stock investors mainly own for its 10.9% dividend yield.
high
Dividend math problem
Yield → plain English → so what: a 10.9% yield means the stock is paying you a lot of cash, but Park just posted FY2025 EPS of -$0.30 and has a -1.3% operating margin. If hotel cash flow stays soft, that payout stops looking generous and starts looking temporary.
A dividend cut could push shares from $11.01 toward the $10 18-month target, or even the $6 low end of the range, a 9% to 45% downside.
high
Estimate gap risk
Forward P/E → plain English → so what: this is the price you pay for next year's profit. At $11.01, the stock trades at about 27.5x the FY2026 EPS estimate of $0.40, but only 8.8x the Wall Street consensus of $1.25. That is not a small disagreement. That is two different companies wearing the same ticker.
If earnings land near $0.40 instead of $1.25, a move back to the $10 target implies about 9% downside from $11.01.
med
Room demand slipping
Comparable RevPAR → plain English → so what: revenue per available room tells you whether a hotel owner is filling rooms at good prices. Park's comparable RevPAR was $180.93, down 6.1% vs. prior year, which says demand and pricing both got harder even before any broader travel slowdown.
With annual revenue at $2.5B, a 6.1% drop points to roughly $153 million of revenue pressure if weakness spreads across the portfolio.
If RevPAR keeps falling and earnings stay weak, your 10.9% yield can turn into share-price downside fast.
source: institutional data · regulatory filings · risk analysis
Pay attention to
income check
watch the dividend against earnings
the 10.9% yield is the reason many people are here. The $0.40 fy2026 EPS estimate is why they stay nervous.
top line
does revenue get back above $2.5B growth mode
last year was a 2.2% decline. You want stabilization first, then growth. Without that, the story is just yield support.
quality
see whether return on capital improves from 1.2%
low returns are the quiet part here. A hotel REIT can be cyclical. It still has to earn more than 1.2% on capital to deserve real enthusiasm.
ownership
keep an eye on institutional flow next quarter
three straight quarters of net buying helped support sentiment. If that flips while operations stay soft, the stock loses an important backstop.
Analyst rankings
earnings predictability
10 / 100
in human-speak, analysts do not see this as a smooth, dependable earnings story.
risk rank
3
that means the stock sits around the middle of the pack on overall safety — not reckless, not a bunker.
price stability
45 / 100
expect some movement. This is more stable than a microcap drama, less stable than a classic defensive income stock.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 189 buyers vs. 147 sellers in 3q2025. total institutional holdings: 0.2B shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$6
$14
$11
current price
$10
target midpoint · 9% from current · 3-5yr high: $21 (+90% · 24% ann'l return)
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