Evercore ISI cuts Park Hotels stock rating, targets $13

Published 16/05/2025, 12:02
Evercore ISI cuts Park Hotels stock rating, targets $13

On Friday, Evercore ISI downgraded the stock rating for Park Hotels & Resorts (NYSE:PK) from Outperform to In Line, setting a price target of $13.00. The research firm cited upcoming renovation challenges at the company’s Miami property and reliance on asset sales to meet capital return and expenditure goals as reasons for the downgrade.

The Miami asset, which is expected to be completed in 2026, presents significant renovation headwinds that influenced Evercore ISI’s decision. The analyst noted that while the lodging real estate investment trusts (REITs), including Park Hotels & Resorts, are currently trading at low multiples, these specific concerns prompted a more cautious stance on the stock.

Park Hotels & Resorts has a track record of effectively repositioning assets, as seen with the Orlando Bonnet Creek and Key West properties. The analyst acknowledged the company’s past successes in enhancing the value of its holdings.

The analyst’s comments reflect a wait-and-see approach, suggesting that Evercore ISI might reconsider its position on Park Hotels & Resorts as the renovation project in Miami progresses and more information becomes available. The firm will be monitoring the situation for potential changes that could affect the stock’s outlook.

Investors are now observing how Park Hotels & Resorts will navigate the renovation process and its impact on the company’s financial strategy, including its ability to meet capital return and expenditure targets through asset sales. The completion of the Miami project will be a key factor in future evaluations of the company’s stock performance.

In other recent news, Park Hotels & Resorts reported its Q1 2025 earnings, revealing a notable miss on earnings per share (EPS) but a slight revenue beat. The company posted an EPS of -$0.29, falling short of the expected $0.08, while revenue reached $630 million, surpassing the forecasted $614.12 million. Despite the revenue beat, the earnings miss has highlighted potential operational cost challenges for the company. Additionally, Jefferies analyst David Katz updated the firm’s outlook on Park Hotels & Resorts, raising the price target to $11 from $10, while maintaining a Hold rating on the stock. Katz’s analysis noted that the company’s valuation is under pressure due to slower recovery at the Hawaiian Village and a deceleration in group bookings. However, Park Hotels & Resorts is actively pursuing capital allocation strategies, including asset sales and capital expenditure projects, to drive future growth. The company has also revised its full-year RevPAR forecast to a range of -1% to +2%. These developments reflect ongoing market uncertainties and strategic efforts by Park Hotels & Resorts to enhance shareholder value.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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