8 Most Undervalued REIT Stocks To Buy Now

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

Number of Hedge Fund Holders: 27

Forward P/E: 16.00

Park Hotels & Resorts Inc. (NYSE:PK) is a lodging real estate investment trust. The firm has a diverse portfolio of market-leading hotels and resorts in some of the top markets in the US and internationally. It was formed as an independent company in 2017 after its spin-off from Hilton. The firm’s headquarters are in Tysons, Virginia.

Park’s irreplaceable portfolio comprises 43 hotels with 26,000 rooms positioned in prime US markets with high barriers to entry. A majority of this portfolio is situated in the central business districts of major cities or conference destinations or resorts. The firm is currently experiencing tailwinds to its growth in 2024 and beyond. The 2024 group revenue pace, which represents bookings for future business, is 11% above 2023.

Simultaneously, Hawaii holds a bright future for Park being a top US resort destination consistently. While US airlines have increased routes to Hawaii, Japanese demand has improved with forward airline bookings to Oahu from Japan up 99% year-over-year through the first half of 2024.

During the year’s fiscal second quarter, Park Hotels & Resorts Inc. (NYSE:PK) saw strong group and leisure demand trends at its hotels in Boston, Miami, and New York. This resulted in a comparable Revenue per Available Room (RevPAR)  growth of 2% as compared to the prior-year period. As aforementioned, Group demand continues to improve with more business demand, increasing citywide events and strong convention calendars at its Boston, Chicago, and New York hotels

In conclusion, Park Hotels & Resorts Inc. (NYSE:PK) serves as one of the largest publicly traded lodging real estate investment trusts. The firm has a lot to offer with its established portfolio of hotels and resorts with significant underlying real estate value and strong growth trends. Additionally, it affiliates with some of the biggest names including Hilton, Marriott, and Hyatt.