Park Hotels & Resorts (PK) Stock

Park Hotels & Resorts Inc (NYSE: PK) is a real estate investment trust that owns a portfolio of 59 hotels with a total of over 33,000 rooms. The company is currently the second largest publicly traded hotel REIT in the United States.

Park Hotels & Resorts was created in January of 2017 from a spinoff from Hilton Hotels. The hotel REIT later acquired Chesapeake Lodging Trust in September 2019, adding a new variety of premium-branded hotels to its portfolio. 

The REIT partners with both brand and third-party operators to manage its hotel and resort properties. Their hotel properties include brands such as Hilton, Marriott, and Hyatt. 

The company’s portfolio is currently made up of 59 properties in top destination markets, such as Hawaii, San Francisco, Orlando, New Orleans, Boston, Chicago, New York City, Denver, San Diego, Miami, Washington D.C. and Key West.

The REIT’s portfolio includes 12 resorts, 20 prime city center hotels, 7 convention centers, and 20 hotels located near airports and other strategic locations. 

Recent Business Updates

The entire hospitality industry was hit hard by the COVID-19 pandemic, and Park Hotels & Resorts is no exception. 

Early on in the pandemic, the company shut down nearly half of their hotels and implemented cost-cutting measures in their remaining properties. Since then, the REIT has been working with its operators to slowly reopen hotels to work toward resuming normal operations. 

The company has been providing regular business updates to keep investors informed on their progress of reopening hotels, as well as revenue and occupancy figures. 

According to a business update the company issued on June 8, 2021, the company has 55 of their 59 properties open, making up about 86% of their total room count. They also increased their occupancy rate in May by 3.7% over April. 

PK Stock Performance

The PK stock price fell to a low of $4.92 per share during the pandemic, which was a nearly 81% decrease from where it started in 2020. Since then, PK stock has been steadily recovering, hitting a 52-week high of $24.60 on March 17, 2021. 

Source: Benzinga Pro

Along with the rest of the hotel REIT industry, Park was forced to suspend dividends as a result of the pandemic. 

Prior to suspending dividends, the company’s most recent quarterly dividend was $0.45 per share.