5 Most Undervalued Hotel Stocks To Buy According To Hedge Funds

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

Number of Hedge Fund Holders: 29

Park Hotels & Resorts Inc. (NYSE:PK) has been gaining attention in 2023. Park Hotels & Resorts Inc. (NYSE:PK) is up about 21% year to date through February 26.

Earlier this month Park Hotels & Resorts Inc. (NYSE:PK) posted upbeat Q4 results.

FFO in the quarter came in at $0.40, in-line with estimates. Revenue in the quarter jumped about 48% on a YoY basis to reach $665 million, beating estimates by $12.68 million. For the first quarter of 2023, Park Hotels & Resorts Inc. (NYSE:PK) expects adjusted FFO to come in between $0.30 to $0.37.

For full-year 2023, Park Hotels & Resorts Inc. (NYSE:PK) expects adjusted FFO in the range of $1.60 to $1.99.

As of the end of the fourth quarter of 2022, 29 hedge funds reported having stakes in Park Hotels & Resorts Inc. (NYSE:PK). The total value of these stakes was about $226 million. The biggest stakeholder of Park Hotels & Resorts Inc. (NYSE:PK) was Ken Griffin’s Citadel Investment Group which owns a $69 million stake in the company.

Vulcan Value Partners made the following comment about Park Hotels & Resorts Inc. (NYSE:PK) in its Q3 2022 investor letter:

“We also purchased Park Hotels & Resorts Inc. (NYSE:PK) during the quarter. Park Hotels and Resorts is a real estate investment trust (REIT) that owns a number of Hilton’s flagship properties including the Hilton Hawaiian Village and the New York Hilton. In 2017 Hilton completed the spinoff of Park Hotels and Resorts, leaving Hilton primarily as a pure franchise and management company. Despite the possibility of short-term fluctuations in global travel from economic or geopolitical concerns, we believe that Park is trading at a significant discount to our estimate of intrinsic value and an even larger discount to replacement value.”