Park Hotels & ResortsFRA:HIP +1.60%72 Gross Margin % is 27.97% as of Mar. 2026, which is 2% below its 10-year median of 28.54. GuruFocus rates FRA:HIP with a GF Score™ of 72/100 and a GF Value™ of €11.94 (Fairly Valued). The stock has 9 warning signs investors should review. Among 680 REITs companies, Park Hotels & Resorts ranks worse than 93.97% on this metric.
FRA:HIP's Gross Margin % is ranked worse than 93.97% of 680
companies
in the REITs industry
Industry Median: 69.705
vs FRA:HIP: 28.70
Park Hotels & Resorts had a gross margin of 27.97% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Park Hotels & Resorts was 0.00% per year.
Park Hotels & Resorts (FRA:HIP) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Park Hotels & Resorts had a gross margin of 27.97% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Park Hotels & Resorts Gross Margin % Related Terms
Park Hotels & Resorts Gross Margin % Historical Data
* Premium members only.
The historical data trend for Park Hotels & Resorts's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:HIP vs DRH, SHO, PEB: Gross Margin % Comparison
For the REIT - Hotel & Motel subindustry, Park Hotels & Resorts's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Park Hotels & Resorts Gross Margin % vs REITs Industry
For the REITs industry and Real Estate sector, Park Hotels & Resorts's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Park Hotels & Resorts's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Park Hotels & Resorts (FRA:HIP) has a Gross Margin % of 27.97% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Park Hotels & Resorts and its competitors. This is near median its historical median of 28.54. According to the industry distribution chart, Park Hotels & Resorts ranks #639 out of 680 companies in the REITs industry, placing it in the top 94%.
Is Park Hotels & Resorts' Gross Margin % too high?
Park Hotels & Resorts' current Gross Margin % of 27.97% is near median its 10-year median of 28.54. The REITs industry median Gross Margin % is 69.71. Park Hotels & Resorts' value of 27.97% is 59.9% below this industry median. Based on the distribution chart, Park Hotels & Resorts ranks #639 out of 680 companies in the REITs industry, which is in the bottom quartile relative to peers. Overall, Park Hotels & Resorts has a GF Score™ of 72/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Park Hotels & Resorts' Gross Margin % compare to DRH and SHO?
According to the REITs industry distribution chart, Park Hotels & Resorts ranks #639 out of 680 companies for Gross Margin %. This places Park Hotels & Resorts in the lower half of its industry. The industry median Gross Margin % is 69.71. Park Hotels & Resorts' value of 27.97% is 59.9% below this benchmark. While the company's 10-year median is 28.54 vs. the industry median of 69.71, Park Hotels & Resorts has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a REITs company?
The median Gross Margin % among REITs companies is 69.71, based on 680 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Park Hotels & Resorts's current Gross Margin % of 27.97% is 59.9% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Park Hotels & Resorts and its competitors. For the REITs industry, the median Gross Margin % is 69.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Park Hotels & Resorts's current Gross Margin % is 27.97%, which is near median its own 10-year median of 28.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Park Hotels & Resorts stock overvalued right now?
Based on GuruFocus' analysis, Park Hotels & Resorts (FRA:HIP) is currently considered Fairly Valued. The stock's GF Value™ is €11.94, compared to a current price of €12.70 — trading 6.4% above its estimated fair value. The current Gross Margin % is 27.97%, which is near median its 10-year median of 28.54 and 59.9% below the REITs industry median of 69.71. Park Hotels & Resorts' overall GF Score™ is 72/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Park Hotels & Resorts (FRA:HIP), the current Gross Margin % is 27.97% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Park Hotels & Resorts (FRA:HIP) Overvalued in 2026?
Based on GuruFocus' analysis, Park Hotels & Resorts stock appears to be overvalued.
The current stock price of €12.70 is trading 6.4% above its estimated GF Value™ of €11.94.
GuruFocus considers Park Hotels & Resorts to be Fairly Valued.
Key valuation signals for FRA:HIP:
Gross Margin %: 27.97% (near median its 10-year median of 28.54)
GF Value™: €11.94 vs. price of €12.70 (6.4% above fair value)
Industry Position: 59.9% below the REITs median (#639 of 680)
No single metric tells the full story. See the FRA:HIP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Park Hotels & Resorts owns upper-upscale and luxury hotels, with 21,042 rooms across 33 hotels in the United States. Park also has interests through joint ventures in another 1,712 rooms in two US hotels. Park was spun out of Hilton Worldwide Holdings at the start of 2017, so most of its hotels are still under the Hilton brand. The company has sold all its international hotels and many of its lower-quality US hotels to focus on high-quality assets in domestic gateway markets.
72GF Score
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