Park Hotels & Resorts (Park Hotels & Resorts) Interest Coverage

: 0.83 (As of Dec. 2023)

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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 Dec. 2023 was $55 Mil. Park Hotels & Resorts's Interest Expense for the three months ended in Dec. 2023 was $-66 Mil. Park Hotels & Resorts's interest coverage for the quarter that ended in Dec. 2023 was 0.83. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Park Hotels & Resorts's Interest Coverage or its related term are showing as below:

PK' s Interest Coverage Range Over the Past 10 Years
Min: 1.17 Med: 2.46 Max: 3.28
Current: 1.23

PK's Interest Coverage is ranked worse than
83.9% of 677 companies
in the REITs industry
Industry Median: 3.01 vs PK: 1.23

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Park Hotels & Resorts Interest Coverage Historical Data

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.

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Park Hotels & Resorts Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

3.28

1.17

1.23

Park Hotels & Resorts Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																1.39	1.10	1.72	1.31	0.83

Competitive 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 Distribution

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:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Park Hotels & Resorts's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Park Hotels & Resorts's Interest Expense was $-252 Mil. Its Operating Income was $311 Mil. And its Long-Term Debt & Capital Lease Obligation was $4,713 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	311	/	-252
	=	1.23

Park Hotels & Resorts's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Park Hotels & Resorts's Interest Expense was $-66 Mil. Its Operating Income was $55 Mil. And its Long-Term Debt & Capital Lease Obligation was $4,713 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	55	/	-66
	=	0.83

The higher the ratio, the stronger the company's Financial Strength is.

Park Hotels & Resorts (NYSE:PK) 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

Thank you for viewing the detailed overview of Park Hotels & Resorts's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Park Hotels & Resorts (Park Hotels & Resorts) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Park Hotels & Resorts Inc (NYSE:PK) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

HIP:Germany

Address

1775 Tysons Boulevard, 7th Floor, Tysons, VA, USA, 22102

Website

https://www.pkhotelsandresorts.com

Park Hotels & Resorts owns upper-upscale and luxury hotels with 26,373 rooms across 41 hotels in the United States. Park also has interests through joint ventures in another 2,656 rooms in four U.S. hotels. Park was spun out of narrow-moat Hilton Worldwide Holdings at the start of 2017, so most of the company's hotels are still under Hilton brands. The company has sold all its international hotels and many of its lower-quality U.S. hotels to focus on high-quality assets in domestic gateway markets.

Executives

Geoffrey Garrett	director	C/O PARK HOTELS & RESORTS, 1775 TYSONS BOULEVARD, 7TH FLOOR, TYSONS VA 22102
Thomas D Eckert	director	1997 ANNAPOLIS EXCHANGE PARKWAY, SUITE 410, ANNAPOLIS MD 21401
Nancy M. Vu	officer: SVP,Gen. Counsel & Secretary	1775 TYSONS BLVD., 7TH FLOOR, TYSONS VA 22102
Thomas A Natelli	director	1997 ANNAPOLIS EXCHANGE PARKWAY, SUITE 410, ANNAPOLIS MD 21401
Jill C Olander	officer: See Remarks	C/O PARK HOTELS & RESORTS INC., 1775 TYSONS BLVD., 7TH FLOOR, TYSONS VA 22102
Baltimore Thomas J Jr	director, officer: See Remarks	PARK HOTELS & RESORTS INC., 1775 TYSONS BLVD, 7TH FLOOR, TYSONS VA 22102
Darren W Robb	officer: See Remarks	C/O PARK HOTELS & RESORTS INC., 1775 TYSONS BLVD., 7TH FLOOR, TYSONS VA 22102
Carl A. Mayfield	officer: EVP, Design and Construction	C/O PARK HOTELS & RESORTS INC., 1775 TYSONS BLVD, 7TH FLOOR, TYSONS VA 22102
Matthew Abram Sparks	officer: See Remarks	C/O HILTON GRAND VACATIONS, 5323 MILLENIA LAKES BLVD., SUITE 400, ORLANDO FL 32839
Hna Tourism Group Co., Ltd.	10 percent owner	HNA BUILDING, NO. 7 GUOXING ROAD, HAIKOU F4 570203
Stephen I Sadove	director
Mu Xianyu	director	C/O PARK HOTELS & RESORTS INC., 1600 TYSONS BOULEVARD, STE. 1000, MCLEAN VA 22102
Blackstone Real Estate Associates Vi L.p.	10 percent owner	C/O THE BLACKSTONE GROUP, 345 PARK AVE., NEW YORK NY 10154
Blackstone Real Estate Partners Vi.te.2 Prime L.p.	10 percent owner	C/O THE BLACKSTONE GROUP L.P., 345 PARK AVE., NEW YORK NY 10154
Hlt Holdco Iii Prime Llc	10 percent owner	C/O THE BLACKSTONE GROUP L.P., 345 PARK AVE., NEW YORK NY 10154