Economic Downturns Impacting Travel Demand: A decline in overall economic activity, consumer confidence, or corporate travel budgets can lead to reduced occupancy rates and average daily rates across its portfolio, directly impacting revenue and profitability.

High Interest Rate Environment Risk: Increased interest rates can raise borrowing costs for existing debt and new financing, potentially decreasing property valuations and making acquisitions less attractive, thereby limiting growth opportunities and increasing financial expenses.

Intense Competition in the Lodging Industry: PK operates in highly competitive markets facing pressure from other full-service hotels, luxury properties, independent hotels, and alternative accommodations like short-term rentals, which could lead to pricing pressure and reduced market share.