Park Hotels & ResortsFRA:HIP +1.60%72 Interest Coverage is 1.33 as of Mar. 2026, which is 27% below its 10-year median of 1.81. 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 700 REITs companies, Park Hotels & Resorts ranks worse than 89.43% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Park Hotels & Resorts's
Operating Income
for the
three
months ended in Mar. 2026 was €59 Mil. Park Hotels & Resorts's Interest Expense for the
three
months ended in Mar. 2026 was €-44 Mil.
Park Hotels & Resorts's interest coverage for the quarter that ended in Mar. 2026 was 1.33.
The higher the ratio, the stronger the company's financial strength is.
Warning Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Park Hotels & Resorts Incs earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.
The historical rank and industry rank for Park Hotels & Resorts's Interest Coverage or its related term are showing as below:
FRA:HIP'
s Interest Coverage Range Over the Past 10 Years
Min: 0.85 Med: 1.81 Max: 3.28
Current: 0.93
FRA:HIP's Interest Coverage is ranked worse than 89.43% of 700
companies
in the REITs industry
Industry Median: 3.095
vs FRA:HIP: 0.93
Park Hotels & Resorts (FRA:HIP) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Park Hotels & Resorts Interest Coverage Related Terms
Park Hotels & Resorts Interest Coverage Historical Data
* Premium members only.
The historical data trend for Park Hotels & Resorts's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
FRA:HIP vs DRH, SHO, PEB: Interest Coverage Comparison
For the REIT - Hotel & Motel subindustry, Park Hotels & Resorts's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs REITs Industry
For the REITs industry and Real Estate sector, Park Hotels & Resorts's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Park Hotels & Resorts's Interest Coverage falls into.
Park Hotels & Resorts Interest Coverage Calculation
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
Park Hotels & Resorts (FRA:HIP) has a Interest Coverage of 1.33 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Park Hotels & Resorts and its competitors. This is 27% below median its historical median of 1.81. Over the past decade, Park Hotels & Resorts' Interest Coverage has ranged from 0.85 to 3.28. According to the industry distribution chart, Park Hotels & Resorts ranks #626 out of 700 companies in the REITs industry, placing it in the top 89.4%.
Is Park Hotels & Resorts' Interest Coverage too high?
Park Hotels & Resorts' current Interest Coverage of 1.33 is 27% below median its 10-year median of 1.81. Over the past 10 years, this metric has ranged from a low of 0.85 to a high of 3.28. The REITs industry median Interest Coverage is 3.10. Park Hotels & Resorts' value of 1.33 is 57% below this industry median. Based on the distribution chart, Park Hotels & Resorts ranks #626 out of 700 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' Interest Coverage compare to DRH and SHO?
According to the REITs industry distribution chart, Park Hotels & Resorts ranks #626 out of 700 companies for Interest Coverage. This places Park Hotels & Resorts in the lower half of its industry. The industry median Interest Coverage is 3.10. Park Hotels & Resorts' value of 1.33 is 57% below this benchmark. Historically, Park Hotels & Resorts' own Interest Coverage has ranged from 0.85 to 3.28 over the past decade. While the company's 10-year median is 1.81 vs. the industry median of 3.10, 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 Interest Coverage for a REITs company?
The median Interest Coverage among REITs companies is 3.10, based on 700 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Park Hotels & Resorts's current Interest Coverage of 1.33 is 57% 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Park Hotels & Resorts and its competitors. For the REITs industry, the median Interest Coverage is 3.10 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Park Hotels & Resorts's current Interest Coverage is 1.33, which is 27% below median its own 10-year median of 1.81. 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 Interest Coverage is 1.33, which is 27% below median its 10-year median of 1.81 and 57% below the REITs industry median of 3.10. 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 Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Park Hotels & Resorts (FRA:HIP), the current Interest Coverage is 1.33 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:
Interest Coverage: 1.33 (27% below median its 10-year median of 1.81)
GF Value™: €11.94 vs. price of €12.70 (6.4% above fair value)
Industry Position: 57% below the REITs median (#626 of 700)
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
Get the complete analysis for FRA:HIP
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