Recent insider buying at Park Hotels & Resorts (PK), along with fresh coverage from Barclays within a broader hotel REIT review, has put the stock back on investors’ radar, especially around long term total return potential.

The recent insider purchase and fresh analyst coverage come as Park Hotels & Resorts trades at US$11.42. The 30-day share price return is 4.58% and the year-to-date share price return is 6.04%. Meanwhile, the 1-year total shareholder return shows an 8.02% decline, which contrasts with a 22.71% gain over three years. This suggests that longer term holders have seen stronger overall outcomes than more recent investors.

If insider interest has you looking more closely at REITs and income ideas, it can also be a good moment to broaden your search with fast growing stocks with high insider ownership.

So with insiders buying, mixed analyst views, a recent one-year decline and a long-term gain, is Park Hotels & Resorts now trading below its underlying value, or is the market already pricing in future growth?

Most Popular Narrative: 10% Undervalued

Against the last close of US$11.42, the most followed narrative points to a fair value of about US$12.69, suggesting some upside based on its long term earnings and cash flow outlook under a 11.99% discount rate.

Significant reinvestment and renovations in key resort and urban assets (e.g., Royal Palm South Beach, Hilton Hawaiian Village, Waldorf Astoria Orlando) are expected to drive outsized growth in RevPAR, occupancy, and EBITDA once projects stabilize, leveraging travelers' increasing desire for experiential and high-end accommodations, which is likely to support above-market revenue and net margin expansion.

Curious what has to happen on revenue, margins, and earnings for that valuation to hold up? The narrative leans on specific timelines and profit assumptions. Want the full picture?

Result: Fair Value of $12.69 (UNDERVALUED)

However, there are still meaningful risks here, including the need to refinance over US$1.3b of debt in 2026, as well as pressure on margins from higher labor costs and softer travel demand.

Build Your Own Park Hotels & Resorts Narrative

If you see the numbers differently or want to stress test your own assumptions, you can build a custom Park Hotels & Resorts view in just a few minutes, starting with Do it your way.

A great starting point for your Park Hotels & Resorts research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.