On Wednesday, Citi analysts maintained their Buy rating and $18.00 price target for Park Hotels & Resorts (NYSE:PK). The firm's updated forecasts for the company take into account revised Revenue Per Available Room (RevPAR), margin expectations, and tax credits that were received in the first half of 2024, totaling $12 million. The tax credits were broken down as $9.5 million in the first quarter and $2.5 million in the second quarter of 2024.
The analysts also factored in an anticipated significant disruption at the Royal Palm Miami, which is expected to undergo renovations in 2025. This anticipated event has led Citi to adjust their financial expectations for Park Hotels & Resorts. According to the updated analysis, the adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for 2025 is now projected to be $666 million, a slight decrease from the previously forecasted $673 million.
Furthermore, the forecast for operating Funds From Operations (FFO) has been revised to $2.09, showing a decline from the earlier estimate of $2.19. These adjustments reflect the analysts' current outlook on the company's financial performance, taking into consideration the various factors that are expected to impact Park Hotels & Resorts' operations.
Park Hotels & Resorts, which is listed on the New York Stock Exchange, is being closely watched by investors as it navigates through the changes in its business environment. The company's share price and financial performance will likely continue to be influenced by its RevPAR, margin performance, and the progress of the anticipated renovations at one of its key properties. Citi's analysis provides a snapshot of their expectations for the hotel and resort company's financial trajectory in the coming year.
In other recent news, Park Hotels & Resorts Inc . reported a Q4 dividend of $0.65 per share, reflecting its 2024 operating results. This includes a standard quarterly dividend of $0.25 and an additional top-off dividend of $0.40. The firm has returned roughly $375 million to its shareholders throughout 2024, comprising nearly $290 million in cumulative dividend payments and over $85 million in share repurchases.
UBS analyst Chris Woronka upgraded the financial model for Park Hotels & Resorts, raising the price target to $15.00 from $14.00, while maintaining a neutral rating on the stock. Despite this, the firm's Q4 revenue per available room (RevPAR) forecast was decreased to -5% year-over-year, indicating a reduction in the Q4 EBITDA estimate to $128 million from $150 million.
Park Hotels & Resorts also announced significant investments in property renovations, with over $200 million expected to be completed by early 2025. Despite challenges such as labor strikes and Hurricane Helene, analysts have noted strong RevPAR growth in urban markets like Chicago, New Orleans, and Boston, and resort markets, particularly Orlando and Miami. These are recent developments in the ongoing story of Park Hotels & Resorts.
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