Truist Securities has revised its outlook on Park Hotels & Resorts (NYSE: PK), downgrading the stock from “Buy” to “Hold” while cutting the price target to $11. This decision is driven by lowered financial expectations, with 2025 EBITDA now forecasted at $590 million, down from $613 million, and AFFO per share for 2025 reduced to $1.78 from $1.86.
🧳 The downgrade reflects growing headwinds in the travel and hospitality sector. Declining consumer and corporate travel confidence, a slowdown in government bookings, and weaker international tourism—particularly in Hawaii—have contributed to softer reservation trends. These challenges prompted a broader cut in RevPAR growth projections across the lodging industry for the latter half of the year.
📉 While financial pressures mount, Park Hotels continues to offer a strong dividend proposition. It sports a forward dividend yield of around 9.5%, with a payout ratio of approximately 53%. This reflects the company’s commitment to shareholder returns, though the high yield is somewhat reflective of investor concerns about the stock’s risk profile and future growth trajectory.
💼 Overall, while the company remains an income generator for yield-seeking investors, the lowered guidance and uncertainty in leisure and business travel trends warrant a more cautious stance in the near term.