Park Hotels strike pact removes near-term uncertainty, says BMO Capital

BMO Capital says Park Hotels & Resorts provided an updated 2024 outlook following the recent ratification of labor agreements at four of its hotels. The total EBITDA impact of nearly $30M is within the range of expected outcomes and removes the overhang of near-term uncertainty, the analyst tells investors in a research note. The firm says that while a 9% dividend yield “offers support for the shares,” it continues to believe Park Hotels’ 2025 setup faces headwinds from elevated expense growth, moderating group pace, and lapping one-time benefits. It keeps a Market Perform rating on the shares with a $16 price target