Park Hotels & Resorts (PK.N): Model Update

研报英文原文证据摘录

Park Hotels & Resorts (PK.N): Model Update

Action |

17 Jun 2026 08:53:29 ET │ 11 pages

Park Hotels & Resorts (PK.N)

Model Update

CITI'S TAKE

We are updating our PK model to reflect continued improvement in RevPAR

trends and property-level EBITDA growth as well as revised interest expense

assumptions following upcoming debt maturities. As a result, we are raising Neutral

our EBITDA estimates and our price target. For 2026E, EBITDA increases to Price (16 Jun 26 16:00) US$14.69

$610M (from $599M), and 2027E EBITDA increases to $630M (from

$605M). Upward revisions are primarily driven by the anticipated full-year Target price US$15.50↑

contribution from the renovated Royal Palm (Miami Beach), continued tight from US$10.50

cost controls, and increasingly constructive industry-wide fundamentals, Expected share price return 5.5%which have driven improving valuations across the hotel space overall.

Expected dividend yield 8.5%

Accordingly, our price target increases to $15.50 (from $10.50), which assumes Expected total return 14.0%

shares can trade at an 11-11.5x forward EBITDA multiple, a step up from the recent Market Cap US$2,958M

9.5-10x range but more in line with historical post-IPO averages. We believe multiple

expansion is justified given broad improvement in RevPAR results industry-wide,

driven by strengthening trends in business transient, group, and leisure. For Park,

group pace to the company’s Hawaii assets looks to be improving into next year,

Price Performanceoutpacing relative to our expectations. Likewise, we believe the operations ramp at

the Royal Palms (reopening later this year) will likely come in ahead of our initial (RIC: PK.N, BB: PK US)

expectations, and we believe group bookings at the Orlando assets continue to

improve for next year.