Park Hotels & Resorts is up 58% in a year and analysts are calling it undervalued. But $1.4 billion in debt maturing this year sits underneath that rally, and the spread between the stock price optimism and the balance sheet reality is wider than the market seems comfortable admitting.
Service Properties Trust just securitized 158 retail properties for $745 million at a weighted average coupon of 5.96%, using $1.1 billion in collateral to retire 8.375% notes. When your best assets only buy you a 240-basis-point improvement, the balance sheet is telling you something the press release won't.
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