Skip to Content

Park Hotels & Resorts Inc PK

Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
Is it the right time to buy or sell?
Find out with Morningstar Premium
Is it the right time to buy or sell?
Find out with Morningstar Premium

1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Slow Return of Leisure Travel Led to Incremental Improvement in Park Hotels' First-Quarter Results

Kevin Brown Equity Analyst

Analyst Note

| Kevin Brown |

First-quarter operations for no-moat Park Hotels & Resorts improved modestly over the fourth quarter and were slightly ahead of our estimates, though the improvement isn't large enough to materially impact our $24 fair value estimate. Occupancy improved sequentially to 26.4% in the first quarter compared with 20.4% in the fourth quarter of 2020, though that is still way down from the 61.7% level seen in the first quarter of 2020 that was itself partially impacted by the pandemic. Average daily rate fell 29.9% year over year, though that is a slight improvement over the declines seen the prior three quarters. As a result, revenue per available room fell 70.0% year over year, which is slightly better than our estimate of a 74.0% decline for the first quarter. Hotel EBITDA improved slightly in the first quarter to a $35 million loss compared with a $54 million loss in the fourth quarter of 2020. So, while Park reported an adjusted funds from operations loss of $0.48 in the first quarter, that is slightly better than the fourth quarter of 2020 result and our first-quarter estimate of a $0.53 loss.

Read Full Analysis

Company Profile

Business Description

Park Hotels & Resorts owns upper-upscale and luxury hotels with 28,931 rooms across 53 hotels in the United States. Park also has interests through joint ventures in another 4,297 rooms in seven U.S. hotels. Park was spun out of narrow-moat Hilton Worldwide Holdings at the start of 2017, so all of the company's hotels are still under Hilton brands. The company has sold all its international hotels and 11 lower-quality U.S. hotels to focus on high-quality assets in domestic, gateway markets. Park has used some of the proceeds to buy back shares and has $951 million available to acquire assets, pay down debt, or buy back more shares.

Contact
1775 Tysons Boulevard, 7th Floor
Tysons, VA, 22102
T +1 571 302-5757
Sector Real Estate
Industry REIT - Hotel & Motel
Most Recent Earnings Mar 31, 2021
Fiscal Year End Dec 31, 2021
Stock Type Hard Assets
Employees 182

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.