10 Most Undervalued Hotel Stocks To Invest In Now

7. Park Hotels & Resorts Inc. (NYSE:PK)

Forward P/E: 12.58

Analysts’ Upside Potential: 8.70%

Park Hotels & Resorts Inc. (NYSE:PK) is a lodging real estate investment trust (REIT) with a diverse portfolio of hotels and resorts. The company operates 41 premium-branded hotels and resorts with more than 25,000 rooms across the United States. Approximately 86% of its portfolio is in the luxury or upper upscale segment, with properties situated in major markets and central business districts.

In July 2024, Park Hotels & Resorts Inc. (NYSE:PK) announced that the unconsolidated joint venture that owns and operates the Hilton La Jolla Torrey Pines sold the hotel for about $165 million, resulting in a pro-rata share of $41 million for the company. Additionally, in August, Park Hotels & Resorts Inc. (NYSE:PK) permanently closed the 360-room Hilton Oakland Airport.

The company also repurchased 2.5 million shares for $35 million in August. With liquidity exceeding $1.4 billion, Park Hotels & Resorts Inc. (NYSE:PK) is focused on enhancing shareholder value through strategic asset sales and investments into its core portfolio.

In Q3 2024, the company began over $200 million of guest room renovations at several key properties, including the Rainbow Tower at the Hilton Hawaiian Village Waikiki Beach Resort, the Palace Tower at the Hilton Waikoloa Village, and the Main Tower at the Hilton New Orleans Riverside. These renovations are expected to improve guest experiences and the company’s financial performance.

In the third quarter of 2024, Park Hotels & Resorts Inc. (NYSE:PK) reported a 3.3% increase in Comparable RevPAR (Revenue per Available Room) compared to Q3 2023, driven by strong demand in cities like Chicago, New Orleans, and Boston.