Negative
Seeking Alpha
1 month ago
Park Hotels & Resorts: Luxury Assets, Fragile Fundamentals
Park Hotels & Resorts focuses on high-end U.S. hotels, prioritizing profitability by divesting non-core assets and concentrating on luxury urban and resort markets. Despite post-pandemic recovery, revenue and operating metrics have stagnated, while leverage remains high and dividend payouts exceed sustainable funds from operations. The REIT's strategy combines renovations, selective buybacks, and a high dividend, but fundamentals have deteriorated, making the yield risky and unsustainable long-term.