Park Hotels & Resorts Stock Climbs on BMO Capital Markets Upgrade

Shares of Park Hotels & Resorts (NYSE: PK) rose in pre-market trading after BMO Capital Markets upgraded the lodging real estate investment trust (REIT) to "outperform" from "market perform." The firm also increased its price target on the stock to $18 from $14, suggesting a potential upside of 17.6% from the previous closing price.

Analyst Cites Growth Outlook

In its note to clients, BMO Capital Markets attributed the upgrade to Park's ongoing portfolio transformation and a healthy demand outlook that is expected to support strong growth through 2027. Reflecting this optimism, BMO raised its forecast for the company's 2026 revenue per available room (RevPAR) growth to 4%, up from a prior estimate of 2.9%.

The stock's move bucked a broader market downturn, with S&P 500 and Nasdaq futures trading lower in the pre-market session. In early trading, Park Hotels stock was up 1.0% to reach $15.45 per share.

Strong Fundamentals Underpin Gains

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The positive analyst action follows a period of solid fundamental performance for the company. In early August, Park Hotels reported second-quarter results that surpassed Wall Street expectations:

• Adjusted Funds From Operations (FFO): $0.70 per share, beating the consensus estimate of $0.62.
• Revenue: $680 million, exceeding analyst forecasts of approximately $663 million.

Following the earnings report, other analysts also revised their views. Cantor Fitzgerald raised its price target to $15 while maintaining a Neutral rating, and Wells Fargo initiated coverage with an Equal Weight rating and a $15 price target. Additionally, investor confidence may be supported by the company's plan to utilize a $700 million delayed draw loan facility in September 2026 to address upcoming debt and extend its maturity profile.