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Park Hotels & Resorts Inc . (NYSE:PK) stock has reached a new 52-week low, touching down at $8.72. This latest price point underscores a challenging period for the hospitality giant, which has seen its stock price plummet by 48.62% over the past year. Investors are closely monitoring the company's performance as the travel and hospitality sector continues to navigate the post-pandemic landscape, with Park Hotels & Resorts grappling with the broader industry's volatility and changing consumer trends. The 52-week low serves as a stark indicator of the hurdles the company faces, even as it strives to adapt and revitalize its operations in a bid to recover lost ground.
In other recent news, Park Hotels & Resorts reported fourth-quarter 2024 earnings that exceeded Wall Street expectations. The company posted an earnings per share of $0.32, significantly higher than the forecasted $0.07, and achieved revenue of $625 million, surpassing the expected $610.3 million. Despite these strong financial results, Citi analysts revised their price target for Park Hotels & Resorts from $18.00 to $16.00, maintaining a Buy rating. The adjustment reflects updated financial models considering actual results and economic uncertainty affecting revenue growth projections.
Citi's analysis also included a decrease in the estimated EBITDA for 2025 to $645 million from the previously projected $666 million, although the operating Funds From Operations for the first quarter of 2025 is now expected to be $0.45, up from $0.41. For the full year 2025, operating FFO is slightly raised to $2.10 from $2.09. Park Hotels & Resorts is also investing in major renovations, notably a $100 million project at the Royal Palm Resort in Miami. The company anticipates RevPAR growth of 0-3% for 2025 and plans to execute $300-$400 million in non-core asset sales.
Analysts from Citi cited fluctuating interest rates and economic conditions as challenges impacting Park Hotels & Resorts. The company's strategic focus includes reshaping its portfolio through asset sales and reinvestment in core properties to enhance long-term growth. Despite the challenges, Park Hotels & Resorts remains focused on unlocking embedded value within its portfolio and maintaining a strong financial position.
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