Macroeconomic Environment Pulled Down Park Hotels & Resorts Inc (PK) in Q1

Longleaf Partners, managed by Southeastern Asset Management, released its “Small-Cap Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund returned 1.50% in the first quarter, compared to the Russell 3000’s -4.72% return and the Russell 2000’s -9.48% decline. The portfolio performed well in a difficult quarter for small-cap stocks. For more information on the fund’s best picks in 2025, please check its top five holdings.

In its first-quarter 2025 investor letter, Longleaf Partners Small-Cap Fund highlighted stocks such as Park Hotels & Resorts Inc. (NYSE:PK). Park Hotels & Resorts Inc. (NYSE:PK) is a publicly traded lodging real estate investment trust. The one-month return of Park Hotels & Resorts Inc. (NYSE:PK) was 1.54%, and its shares lost 29.77% of their value over the last 52 weeks. On June 26, 2025, Park Hotels & Resorts Inc. (NYSE:PK) stock closed at $10.52 per share, with a market capitalization of $2.103 billion.

Longleaf Partners Small-Cap Fund stated the following regarding Park Hotels & Resorts Inc. (NYSE:PK) in its Q1 2025 investor letter:

Park Hotels – Hotel owner and operator Park Hotels was a detractor for the quarter. As a stock that is sensitive to the macroeconomic environment, it traded lower as travel demand slowed even though the company reported solid results with 3%+ revenue per available room (RevPAR) growth. Park remains in a much better financial position than in recent years and will soon see debt related to former assets in San Francisco come off the books. The other positive is that we are finally beginning to see an uptick in hotel transaction activity, and we believe Park could be a compelling target.

A high-end hotel suite with trendy contemporary décor and luxurious amenities.

Park Hotels & Resorts Inc. (NYSE:PK) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 27 hedge fund portfolios held Park Hotels & Resorts Inc. (NYSE:PK) at the end of the first quarter, which was 26 in the previous quarter. While we acknowledge the potential of Park Hotels & Resorts Inc. (NYSE:PK) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.

In another article, we covered Park Hotels & Resorts Inc. (NYSE:PK) and shared the list of best hospitality stocks to buy according to hedge funds. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. While we acknowledge the potential of PK as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.