Breaking Down Park Hotels & Resorts Inc. (PK) Financial Health: Key Insights for Investors

Are you keeping a close watch on Park Hotels & Resorts Inc. (PK) and trying to gauge its financial stability? With a diverse portfolio of 40 premium-branded hotels and resorts, understanding the ins and outs of its financial health is crucial for making informed investment decisions. Did you know that Park Hotels & Resorts has a debt-to-equity ratio of 127%, with total shareholder equity of $3.6 billion and total debt of $4.6 billion? Moreover, the company's interest coverage ratio stands at 1.4, supported by an EBIT of $349.0 million and cash and short-term investments of $402.0 million. Dive in to explore key metrics and insights that can help you assess Park Hotels & Resorts' financial position and future prospects, including their impressive dividend yield of 14.24%!

Park Hotels & Resorts Inc. (PK) Revenue Analysis

Understanding Park Hotels & Resorts Inc. (PK)'s financial health requires a close examination of its revenue streams. As a lodging real estate investment trust (REIT), PK's revenue is primarily derived from hotel operations. Here's a breakdown of what that entails:

Breakdown of Primary Revenue Sources:

• Room Revenue: This is the largest component, generated from guest room rentals.
• Food and Beverage: Revenue from restaurants, bars, and catering services within the hotels.
• Other Hotel Revenue: Includes income from parking, recreational amenities, and other guest services.

To assess the company's performance, reviewing its historical revenue growth is essential. However, I am unable to provide exact figures for year-over-year revenue growth rates and contributions from different business segments for the fiscal year 2024 without access to real-time data.

For a clear picture, consider the following hypothetical example based on trends and general REIT revenue structures:

Here’s an example of how revenue streams might break down. Please note that this data is purely illustrative and does not reflect actual 2024 numbers.

Analysis of any significant changes in revenue streams requires up-to-date information. Factors that could influence these changes include:

• Acquisitions and Dispositions: Buying or selling properties can significantly alter revenue.
• Market Conditions: Economic upturns or downturns affect travel and hotel occupancy rates.
• Renovations and Improvements: Upgrading properties can lead to higher room rates and increased demand.
• Brand Repositioning: Changes in brand affiliation or marketing strategies can impact revenue.

For additional insights into the company's strategic direction, you might find this resource helpful: Mission Statement, Vision, & Core Values of Park Hotels & Resorts Inc. (PK).

Park Hotels & Resorts Inc. (PK) Profitability Metrics

Understanding the profitability of Park Hotels & Resorts Inc. (PK) requires a detailed look into its financial performance. By examining key metrics such as gross profit, operating profit, and net profit margins, trends in profitability, and operational efficiency, investors can gain valuable insights. Additionally, comparing these metrics with industry averages provides a comprehensive view of the company's financial health.

Here's an overview of Park Hotels & Resorts Inc.'s profitability:

• Gross Profit: For the trailing 12 months (TTM) ending September 30, 2024, Park Hotels & Resorts reported a gross profit of $1.44 billion. This represents a 1.1% decrease compared to $1.46 billion in 2023.
• Gross Margin: The gross margin improved from 54.2% in 2023 to 54.9% TTM.
• Operating Income: Park Hotels & Resorts' operating income increased by 6.8% to $332.0 million.
• Operating Income Margin: The operating margin expanded from 11.5% to 12.6%. However, as of March 2025 (TTM), the operating margin was reported at 6.34%. At the end of 2024, the company's operating margin was 6.35%.
• Net Income: Net income surged by 3.43x, from $97.0 million in 2023 to $333.0 million TTM. For the full year 2024, the net income was reported as $226 million, compared to $106 million in 2023.
• Net Profit Margin: The net profit margin skyrocketed from 3.6% to 12.7%.

In Q3 2024, Park Hotels & Resorts Inc. reported:

• Revenue decreased by 4.4% year-over-year (YoY), from $679.0 million to $649.0 million.
• Gross profit declined by 1.6% YoY, from $373.0 million to $367.0 million.
• Operating income contracted by 5.9% YoY, from $85.0 million to $80.0 million.
• Net income soared by 100% YoY, from $27.0 million to $54.0 million.

Here's a look at the operating margin history for Park Hotels & Resorts from 2015 to 2024:

In Q4 2024, Park Hotels & Resorts reported strong performance, with an EPS of $0.32 against a forecast of $0.07 and revenue reaching $625 million, surpassing expectations. The adjusted EBITDA margin for the quarter was 24.6% (or 28.1% excluding strike impact).

For additional insights into Park Hotels & Resorts Inc., consider exploring this resource: Exploring Park Hotels & Resorts Inc. (PK) Investor Profile: Who’s Buying and Why?

Park Hotels & Resorts Inc. (PK) Debt vs. Equity Structure

Understanding how Park Hotels & Resorts Inc. (PK) finances its operations and growth is crucial for investors. The balance between debt and equity plays a significant role in the company's financial health and risk profile. Here’s a breakdown of PK’s debt and equity structure:

As of the fiscal year 2024, Park Hotels & Resorts Inc. (PK) manages its debt with a mix of long-term and short-term liabilities. Analyzing these components provides insight into the company's financial obligations and liquidity.

• Overview of Debt Levels: Park Hotels & Resorts Inc. (PK) carries both long-term and short-term debt. Monitoring these levels helps assess the company's solvency and ability to meet its financial commitments.
• Long-Term Debt: This includes obligations due beyond one year, such as bonds and term loans, which are used to finance significant capital expenditures and strategic investments.
• Short-Term Debt: This encompasses obligations due within one year, such as commercial paper and the current portion of long-term debt, reflecting the company’s immediate financial liabilities.

The debt-to-equity ratio is a critical metric for evaluating Park Hotels & Resorts Inc. (PK)’s financial leverage. It indicates the proportion of debt and equity the company uses to finance its assets. Here’s how it typically works:

• Debt-to-Equity Ratio: Calculated by dividing total liabilities by total shareholders' equity, this ratio shows how much debt Park Hotels & Resorts Inc. (PK) is using to finance its assets relative to the value of shareholders’ equity.
• Industry Standards: Comparing Park Hotels & Resorts Inc. (PK)'s ratio to industry averages provides context. A higher ratio than peers may indicate higher risk, while a lower ratio may suggest a more conservative approach.

Recent financing activities, such as debt issuances, credit ratings, and refinancing, can significantly impact Park Hotels & Resorts Inc. (PK)’s financial structure. Keeping track of these activities is essential for understanding the company's strategic financial maneuvers.

• Debt Issuances: New bond offerings or loans can provide capital for investments or debt repayment but also increase leverage.
• Credit Ratings: Ratings from agencies like Standard & Poor's and Moody's reflect Park Hotels & Resorts Inc. (PK)'s creditworthiness and ability to repay debt. Changes in ratings can affect borrowing costs and investor confidence.
• Refinancing Activities: Refinancing existing debt can lower interest rates, extend maturity dates, and improve cash flow, providing greater financial flexibility.

Balancing debt and equity is crucial for Park Hotels & Resorts Inc. (PK) to maintain financial stability and flexibility. Here’s how the company manages this balance:

• Strategic Financing Decisions: Park Hotels & Resorts Inc. (PK) must strategically decide when to use debt financing versus equity funding, considering factors like interest rates, market conditions, and investment opportunities.
• Impact on Financial Health: Over-reliance on debt can increase financial risk, while too much equity may dilute earnings per share. A balanced approach supports sustainable growth and shareholder value.

For further insights into Park Hotels & Resorts Inc. (PK)’s mission, vision, and core values, check out: Mission Statement, Vision, & Core Values of Park Hotels & Resorts Inc. (PK).

Park Hotels & Resorts Inc. (PK) Liquidity and Solvency

Assessing Park Hotels & Resorts Inc.'s financial health involves a close look at its liquidity and solvency positions. Liquidity refers to the company's ability to meet its short-term obligations, while solvency indicates its ability to meet long-term obligations.

To gauge Park Hotels & Resorts Inc.'s liquidity, we can analyze a few key metrics:

• Current Ratio: This ratio measures a company's ability to pay off its current liabilities with its current assets.
• Quick Ratio: Similar to the current ratio, but it excludes inventory from current assets, providing a more conservative view of liquidity.
• Working Capital Trends: Monitoring the trend of working capital (current assets minus current liabilities) can indicate whether a company's short-term financial health is improving or deteriorating.

Based on the 2024 fiscal year data, further details on these ratios and working capital trends would give a clearer picture of Park Hotels & Resorts Inc.'s immediate financial stability.

The company's cash flow statements offer insights into its liquidity. These statements are divided into three sections:

• Operating Activities: Cash generated or used from the company's core business operations.
• Investing Activities: Cash flow related to the purchase or sale of long-term assets.
• Financing Activities: Cash flow related to debt, equity, and dividends.

By examining the trends in these three sections, we can understand how Park Hotels & Resorts Inc. is managing its cash. For example, strong positive cash flow from operations indicates a healthy ability to generate cash from its core business, while significant cash outflows from investing activities might suggest the company is making strategic investments for future growth.

Solvency can be assessed by looking at metrics such as debt-to-equity ratio, which indicates the extent to which a company is financing its operations with debt versus equity. A high debt-to-equity ratio may indicate a higher risk of financial distress.

Here’s a hypothetical overview of some key financial data as of the end of the 2024 fiscal year. Please note that this is not the real data, and is only used for illustrative purposes.

Based on this hypothetical data:

• The Current Ratio would be 2.0 ($700 million / $350 million), suggesting strong liquidity.
• The Debt-to-Equity Ratio would be 1.67 ($2.5 billion / $1.5 billion).

A comprehensive analysis of Park Hotels & Resorts Inc.'s financial statements, including the balance sheet, income statement, and cash flow statement, is essential to identify any potential liquidity concerns or strengths. Investors should also monitor any significant changes in the company's working capital, debt levels, and cash flow trends to make informed decisions. For more insights into the investors of Park Hotels & Resorts Inc., check out: Exploring Park Hotels & Resorts Inc. (PK) Investor Profile: Who’s Buying and Why?

Park Hotels & Resorts Inc. (PK) Valuation Analysis

Determining whether Park Hotels & Resorts Inc. (PK) is overvalued or undervalued requires analyzing several key financial metrics and market indicators. These include price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios, alongside stock price trends, dividend yield, payout ratios, and analyst consensus.

Currently, updated P/E and P/B ratios for Park Hotels & Resorts Inc. (PK) are not readily available. The EV/EBITDA ratio is a valuation metric that compares a company's enterprise value to its earnings before interest, taxes, depreciation, and amortization. As of December 31, 2024, the EV/EBITDA for Park Hotels & Resorts Inc. (PK) was 14.27x. This is calculated using an Enterprise Value of $6.43 billion and an EBITDA of $450.5 million.

Analyzing stock price trends provides insight into market sentiment and investor confidence. Over the past year, Park Hotels & Resorts Inc. (PK) has shown varied performance. As of April 18, 2025, the stock closed at $14.99. The 52-week high is $17.53, and the 52-week low is $11.78. The stock's performance relative to these highs and lows can indicate potential overvaluation or undervaluation.

Park Hotels & Resorts Inc. (PK) offers a dividend yield, which can be an important factor for investors seeking income. The most recent quarterly dividend was declared on March 13, 2025, for $0.25 per share, payable on April 15, 2025, to stockholders of record as of March 31, 2025. The annual dividend payout is $1.00 per share. As of April 18, 2025, the dividend yield is approximately 6.67%. The payout ratio, which indicates the percentage of earnings paid out as dividends, provides further context on the sustainability of the dividend payments.

Analyst consensus on Park Hotels & Resorts Inc. (PK) stock provides a summarized view of professional opinions. According to the latest data, the consensus rating is 'Hold,' derived from evaluations by 12 analysts. These ratings typically range from 'Strong Buy' to 'Sell,' offering a comprehensive view of market expectations.

Here is a summary of analyst ratings:

Valuation ratios offer a snapshot of how the market is pricing Park Hotels & Resorts Inc. (PK) relative to its earnings, book value, and cash flow. Comparing these ratios to industry averages and historical values can provide insights into whether the stock is trading at a premium or discount. Additionally, monitoring stock price movements and understanding dividend payouts help investors assess the potential for capital appreciation and income generation.

For more insight into the company's guiding principles, explore: Mission Statement, Vision, & Core Values of Park Hotels & Resorts Inc. (PK).

Park Hotels & Resorts Inc. (PK) Risk Factors

Understanding the risks that Park Hotels & Resorts Inc. (PK) faces is crucial for investors. These risks can be categorized into internal and external factors that may impact the company’s financial health.

Here's a breakdown of key risk areas:

• Industry Competition: The US travel market is characterized by consistent consumer demand amidst changing spending patterns. Despite a slight decline in travel spending at the start of 2024, inflation-adjusted figures point to growth, with household spending on travel increasing by around 10.6% compared to 2019. Park Hotels & Resorts operates a portfolio of 43 premium-branded hotels with more than 26,000 rooms, primarily in the luxury and upper-upscale segments, making it susceptible to competition within these markets.
• Regulatory Changes: To maintain its REIT tax status, Park Hotels & Resorts must distribute at least 90% of its REIT taxable income to shareholders annually.

Several operational, financial, and strategic risks have been highlighted in recent earnings reports and filings:

• Operational Risks:
• Labor Relations: Labor agreements were successfully negotiated for four hotels following strikes and labor activity in late 2024, which affected operating results. The strikes in Honolulu, Boston, and Seattle impacted Comparable RevPAR. Preliminary November 2024 RevPAR was expected to be down 3.9% year-over-year; however, excluding the impact of these strikes, RevPAR growth would have improved by 510 basis points to 1.2%.
• Hotel Management: The company could be adversely affected if any third-party hotel manager fails to manage the company's hotels in its best interests.
• Employment of Hotel Staff: Park Hotels & Resorts is subject to risks associated with the employment of hotel staff, particularly in hotels employing unionized staff, which could increase the company's operating costs and adversely affect its revenues and profitability.
• Renovation Disruptions: Extensive renovation plans, while aimed at enhancing long-term value, present significant near-term risks. Ongoing and planned renovations can lead to operational disruptions, potentially impacting revenue and guest satisfaction in the short term.
• Financial Risks:
• Debt and Contractual Obligations: Park Hotels & Resorts' debt and other contractual obligations could adversely affect its financial position and ability to raise additional capital and could divert cash flow from operations to pay debt.
• The leverage ratio, defined as the ratio of total debt to assets, stands at 52%, which is higher than the industry average of 37%. As of September 30, 2024, total debt accounted for $4.58 billion, up by 2.0% from $4.49 billion on December 31, 2023.
• TTM interest expenses increased by 7.5% to $271.0 million compared to 2023.
• Interest Rate Risk: Rising interest rates could increase financing costs for future projects.
• Strategic Risks:
• Hawaii Market Recovery: A slower-than-expected recovery in the Hawaii market poses a significant risk to Park Hotels & Resorts' near-term performance and could potentially impact its medium-term outlook. Analysts have already adjusted their RevPAR growth forecasts downward for 2024, 2025, and 2026, primarily due to concerns about Hawaii's performance.
• Climate Change: Properties in coastal areas are at risk from rising sea levels and increased storm intensity, potentially leading to higher insurance costs and operational disruptions.

Mitigation strategies and plans include:

• Active Asset Management: Optimizing performance across its portfolio by closely tracking occupancy rates, average daily rates, and revenue per available room to enhance profitability.
• Property Enhancements: Investing in renovations and upgrades to enhance guest experiences and maintain a competitive edge. In 2023, it completed the renovation and expansion of the Bonnet Creek complex in Florida, full-scale renovation of the resort Casa Marina Key West, Curio Collection in Florida, guest room renovations at the Tapa Tower of the Hilton Hawaiian Village Waikiki Beach Resort in Hawaii, and guest room renovations of Riverside Tower at Hilton New Orleans Riverside in Louisiana. For 2024, the company planned to invest $230 – $250 million, with nearly 60% allocated to guest-facing renovations.
• Disciplined Capital Allocation: The company aims to expand its portfolio selectively through acquisitions of high-quality assets in prime locations with substantial barriers to entry and has also engaged in selective asset sales to streamline its portfolio and focus on core properties that align with its strategic objectives. In Q3 2024, it disposed of the Hilton Oakland Airport, reflecting its commitment to consolidating a stronger portfolio.
• Financial Stability: Maintaining financial flexibility through prudent debt and liquidity strategies.
• Risk Management: Park Hotels & Resorts prides itself on being an industry leader in risk management. The company has a clearly defined risk management and reporting framework to identify, manage, and mitigate risks across the company.

For more insights into the company's strategic vision, you can explore: Mission Statement, Vision, & Core Values of Park Hotels & Resorts Inc. (PK).

Park Hotels & Resorts Inc. (PK) Growth Opportunities

For Park Hotels & Resorts Inc. (PK), several factors could drive future growth, including strategic property improvements, leveraging brand affiliations, and capitalizing on market recovery trends. The company's ability to enhance guest experiences and operational efficiency will be crucial.

Future revenue growth projections and earnings estimates for Park Hotels & Resorts Inc. (PK) will likely depend on the pace of recovery in the travel and hospitality sector. Analysts' estimates and company guidance, as available in the latest financial reports and investor presentations, should be monitored to gauge expectations.

Strategic initiatives and partnerships are vital for Park Hotels & Resorts Inc. (PK). These may include:

• Renovations and upgrades to existing properties to attract higher-paying customers.
• Forming alliances with travel companies or loyalty programs to increase occupancy rates.
• Exploring opportunities in emerging markets or unique travel segments.

Competitive advantages for Park Hotels & Resorts Inc. (PK) may stem from:

• A diverse portfolio of high-quality assets in prime locations.
• Strong relationships with major hotel brands.
• Effective cost management and operational strategies.

To see an overview of Park Hotels & Resorts Inc. (PK) financial health, follow this link: Breaking Down Park Hotels & Resorts Inc. (PK) Financial Health: Key Insights for Investors