ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Park Hotels & Resorts's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 3.48%.
As of today (2026-06-25), Park Hotels & Resorts's WACC % is 8.09%. Park Hotels & Resorts's ROIC % is 3.01% (calculated using TTM income statement data).
Park Hotels & Resorts earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Park Hotels & Resorts (FRA:HIP) ROIC % Explanation
ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROIC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Park Hotels & Resorts's WACC % is 8.09%. Park Hotels & Resorts's ROIC % is 3.01% (calculated using TTM income statement data).
Park Hotels & Resorts earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
Like ROE % and ROA %, ROIC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
* 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.
For the REIT - Hotel & Motel subindustry, Park Hotels & Resorts's ROIC %, along with its competitors' market caps and ROIC % 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 ROIC % vs REITs Industry
For the REITs industry and Real Estate sector, Park Hotels & Resorts's ROIC % distribution charts can be found below:
* The bar in red indicates where Park Hotels & Resorts's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Mar. 2026) data.
The tax rate is limited to between 0% and 100%.
* 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 ROIC % of 3.48% as of Mar. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Park Hotels & Resorts and its competitors.
Is Park Hotels & Resorts' ROIC % too high?
Park Hotels & Resorts' current ROIC % is 3.48%. The REITs industry median ROIC % is 3.74. Park Hotels & Resorts' value of 3.48% is 7% below this industry median. 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' ROIC % compare to DRH and SHO?
Park Hotels & Resorts' ROIC % of 3.48% can be compared against companies in the REITs industry. The industry median ROIC % is 3.74. Park Hotels & Resorts' value of 3.48% is 7% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROIC % for a REITs company?
The median ROIC % among REITs companies is 3.74, based on 750 companies in the industry. Companies in the top quartile (top 25%) have a ROIC % significantly above this median, while those in the bottom quartile fall well below. However, ROIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Park Hotels & Resorts's current ROIC % of 3.48% is 7% 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 ROIC % mean?
A high ROIC % can signal that a stock is expensive relative to its fundamentals. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Park Hotels & Resorts and its competitors. For the REITs industry, the median ROIC % is 3.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Park Hotels & Resorts's current ROIC % is 3.48%. 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 €11.93, compared to a current price of €12.50 — trading 4.8% above its estimated fair value. The current ROIC % is 3.48% and 7% below the REITs industry median of 3.74. 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 ROIC % calculated?
ROIC % is calculated from a company's financial statements. For Park Hotels & Resorts (FRA:HIP), the current ROIC % is 3.48% 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 €12.50 is trading 4.8% above its estimated GF Value™ of €11.93.
GuruFocus considers Park Hotels & Resorts to be Fairly Valued.
Key valuation signals for FRA:HIP:
ROIC %: 3.48%
GF Value™: €11.93 vs. price of €12.50 (4.8% above fair value)
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
ROIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FRA:HIP has been successfully added to your 
