Why Park Hotels & Resorts (PK) Is Sinking Today

The shares of Park Hotels & Resorts (PK) are retreating 4% today after Swiss bank UBS lowered its 2025 EBITDA estimate for the firm by 3%-4%.

Why UBS Cut Its Estimate

UBS noted that Hawaii accounts for 32% of PK’s EBITDA, and the bank does not expect the state’s tourism sector to recover in 2025. Moreover, the space may not rebound in 2026 either, UBS warned.

An architectural view of premium-branded hotels with the iconic company logo illuminated in the evening.

Another important market for PK is New York City which accounts for 7% of the firm’s EBITDA. In 2026, labor contracts are due to be renewed in the Big Apple, UBS reported, noting that the latter situation could boost PK’s labor costs and result in problematic strikes.

Additionally, UBS wrote that the demand for group bookings at hotels may not be as strong as expected.

More Information About PK

Park Hotels & Resorts earlier today reached a new 52-week low of $12.80, and the shares have a very high forward dividend yield of 10.4%.

The stock has a forward price-to-earnings ratio of 13.2 times, and analysts, on average, expect its earnings per share to climb to 95 cents this year from 55 cents in 2024.

In the last month, PK has fallen 7%, while the shares have declined 8% in the last three months.

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Disclosure: None. This article is originally published at Insider Monkey.