Filing Flows › Park Hotels & Resorts (PK) › Takeover & LBO
Is Park Hotels & Resorts (PK) a takeover target?
A leveraged buyout at today's price plus 30% ($20.21 a share) would return a loss of about 5% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%. It already carries 12.1× EBITDA in net debt (the model flags anything over 6×), so a buyer could add little debt of its own. Historically 6.1% of companies with its figures were bought within a year (1.2× the average).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $20.21 | today's $15.55 plus 30% |
| × shares | 200.0 million | |
| = Equity value | $4.0B | |
| + Debt refinanced | $4.0B | |
| − Cash | $295M | |
| + Other claims | −$58.0M | preferred stock, minority interests |
| = Enterprise value | $7.6B | 25.3× EBITDA of $302M |
| Fees | $153M | 2% of the price |
| New debt | $1.7B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $6.1B | 79% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $2.5B | $302M | $127M | −$137M | $1.8B |
| Year 2 | $2.5B | $303M | $138M | −$149M | $1.9B |
| Year 3 | $2.6B | $308M | $149M | −$163M | $2.1B |
| Year 4 | $2.6B | $315M | $161M | −$178M | $2.3B |
| Year 5 | $2.7B | $324M | $175M | −$194M | $2.5B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 22.2× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $7.2B | |
| − Debt left | $2.5B | |
| = Buyer's equity | $4.7B | |
| Money multiple | 0.77× | on $6.1B put in |
| Buyer's yearly return (IRR) | −5.1% |
Price against return
What the buyer makes at other premiums over today's $15.55.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $17.11 | −3.0% |
| 20% | $18.66 | −4.1% |
| 30% | $20.21 | −5.1% |
| 40% | $21.77 | −6.1% |
| 50% | $23.33 | −7.0% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $2.5B | |
| EBITDA, last 12 months | $302M | 11.9% of revenue |
| Depreciation and amortization | $271M | |
| Capital spending | $312M | |
| Debt | $4.0B | |
| Cash | $295M | |
| Share price | $15.55 | on Nov 5, 2026 |
Fixed rules, the same as the interactive view's starting point: the shares are bought at today's price plus 30%, the company's debt is refinanced and fees take 2%. New debt is the least of 5.5× EBITDA, 65% of the price and the amount whose interest EBITDA covers 2 times, at 7.65% a year (SOFR 3.89% plus the high-yield B spread 3.26% plus 0.5%, rates of Oct 15, 2026). Revenue grows -0.2% in the first year — the company's own rate, held between −3% and +8% — fading to 3% by year 5; the EBITDA margin, depreciation and capital spending stay at today's share of revenue; working capital takes 10% of each year's added revenue; tax is 21% of profit after interest. Every dollar of free cash flow repays debt. After 5 years the buyer sells at today's multiple of EBITDA.
What a takeover could cost
Takeovers on record paid a median premium of 32.5% over the share price before the deal (the middle half 20% to 51.8%), according to the 1,437 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Park Hotels & Resorts would cost about $20.60 a share, $4.1B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 20% | $18.66 | $3.7B |
| Median | 32.5% | $20.60 | $4.1B |
| High end (a quarter paid more) | 51.8% | $23.60 | $4.7B |
The odds, from history
Historically 6.1% of companies with its figures were bought within a year (1.2× the average). Its figures put it in decile 8 of 10 (10 = the most likely to be bought). The odds come from a model of every merger proxy, tender-offer response and going-private statement filed on EDGAR since 2011, set against each company's size, margins, debt, cash flow and growth the year before.
Park Hotels & Resorts' latest quarter
Park Hotels & Resorts, Q3 2026: revenue $602M (-1% year over year), operating margin 6.3%, net loss $15.0M, operating cash flow $115M. The chart follows the revenue to costs, profit and cash.
Questions
Is Park Hotels & Resorts being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Park Hotels & Resorts?
A leveraged buyout at today's price plus 30% ($20.21 a share) would return a loss of about 5% a year to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%. It already carries 12.1× EBITDA in net debt (the model flags anything over 6×), so a buyer could add little debt of its own.
What would a takeover of Park Hotels & Resorts cost?
Takeovers on record paid a median premium of 32.5% over the share price before the deal (the middle half 20% to 51.8%), according to the 1,437 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Park Hotels & Resorts would cost about $20.60 a share, $4.1B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.