Head to Head Review: LaSalle Hotel Properties (LHO) vs. Park Hotels & Resorts (PK)
LaSalle Hotel Properties (NYSE: LHO) and Park Hotels & Resorts (NYSE:PK) are both mid-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, dividends, institutional ownership, earnings, valuation and profitability.
LaSalle Hotel Properties pays an annual dividend of $1.80 per share and has a dividend yield of 6.3%. Park Hotels & Resorts pays an annual dividend of $1.72 per share and has a dividend yield of 6.3%. LaSalle Hotel Properties pays out 66.9% of its earnings in the form of a dividend. Park Hotels & Resorts has increased its dividend for 5 consecutive years. Park Hotels & Resorts is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Institutional & Insider Ownership
97.3% of Park Hotels & Resorts shares are held by institutional investors. 0.4% of LaSalle Hotel Properties shares are held by company insiders. Comparatively, 0.3% of Park Hotels & Resorts shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This is a breakdown of current recommendations for LaSalle Hotel Properties and Park Hotels & Resorts, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|LaSalle Hotel Properties||2||10||1||0||1.92|
|Park Hotels & Resorts||0||8||7||0||2.47|
LaSalle Hotel Properties presently has a consensus price target of $28.46, suggesting a potential downside of 0.60%. Park Hotels & Resorts has a consensus price target of $35.54, suggesting a potential upside of 30.61%. Given Park Hotels & Resorts’ stronger consensus rating and higher probable upside, analysts plainly believe Park Hotels & Resorts is more favorable than LaSalle Hotel Properties.
This table compares LaSalle Hotel Properties and Park Hotels & Resorts’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|LaSalle Hotel Properties||27.85%||13.05%||8.48%|
|Park Hotels & Resorts||N/A||50.66%||25.50%|
Valuation and Earnings
This table compares LaSalle Hotel Properties and Park Hotels & Resorts’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|LaSalle Hotel Properties||$1.18 billion||2.75||$371.93 million||$2.69||10.64|
|Park Hotels & Resorts||$2.78 billion||2.10||$732.00 million||N/A||N/A|
Park Hotels & Resorts has higher revenue and earnings than LaSalle Hotel Properties.
Park Hotels & Resorts beats LaSalle Hotel Properties on 11 of the 14 factors compared between the two stocks.
LaSalle Hotel Properties Company Profile
LaSalle Hotel Properties is a self-administered and self-managed real estate investment trust. The Company primarily buys, owns, redevelops and leases upscale and luxury full-service hotels located in convention, resort and urban business markets. As of December 31, 2016, the Company owned interests in 46 hotels with approximately 11,450 guest rooms located in nine states of the United States and the District of Columbia (DC). As of December 31, 2016, the Company’s properties included Hotel Amarano Burbank; Hilton San Diego Gaslamp Quarter; Hotel Solamar; San Diego Paradise Point Resort and Spa; The Hilton San Diego Resort and Spa; Harbor Court Hotel; The Marker San Francisco; Chamberlain West Hollywood; Le Montrose Suite Hotel; The Grafton on Sunset; Hotel George; Hotel Rouge; Mason & Rook Hotel; The Donovan; The Liaison Capitol Hill; The Marker Waterfront Resort; Hotel Chicago; Onyx Hotel; Park Central Hotel New York; The Heathman Hotel; Westin Philadelphia, and Lansdowne Resort.
Park Hotels & Resorts Company Profile
Park Hotels & Resorts Inc. is a lodging real estate company. The Company has a portfolio of hotels and resorts. The Company operates through ownership segment, which includes all of its hotel properties. As of December 31, 2016, the Company’s portfolio consisted of 67 hotels and resorts with over 35,000 rooms located in the United States and international markets. Its portfolio includes hotels in areas, such as New York City, Washington, D.C., Chicago, San Francisco and London; resorts in leisure destinations, including Hawaii, Orlando and Key West, and a range of properties adjacent to gateway airports, such as Los Angeles International, Chicago O’Hare, Boston Logan and Miami Airport, and select suburban locations. The Company’s brand affiliations include Conrad Hotels & Resorts, DoubleTree by Hilton, Embassy Suites by Hilton, Hampton by Hilton, Hilton Hotels & Resorts, Hilaton Garden Inn, Curio – A Collection by Hilton, and Waldorf Astoria Hotels & Resorts.
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