Filed by Park Hotels & Resorts Inc.
(Commission
File No. 001-37795)
pursuant to Rule 425 under the Securities Act of 1933
and deemed filed pursuant to
Rule 14a-12
under the Securities Exchange Act of 1934
Subject Company: Chesapeake Lodging Trust
(Commission
File No. 001-34572)
PARK HOTELS & RESORTS INC. ANNOUNCES THE SALES OF THREE
NON-CORE
ASSETS FOR $166M
Tysons, Va.(BUSINESS WIRE)June 24, 2019Park Hotels &
Resorts Inc. (Park or the Company) (NYSE:PK) today announced that it closed on the sales of three
non-core
domestic assets for combined gross proceeds of $166.0 million, or
$151,000 per key. The three hotels, the
507-room
Hilton Atlanta Airport in Atlanta, Georgia; the
317-room
Hilton New Orleans Airport in New Orleans, Louisiana; and the
274-room
Embassy Suites Parsippany in Parsippany, New Jersey, are located in
non-core
airport and suburban markets and had a combined 2018 RevPAR of $109, or approximately 37%
below Parks 2018 portfolio average. When adjusted for Parks anticipated capital expenditures of $50.5 million, or $46,000 per key, the combined sale price represents a 6.9% capitalization rate on the three hotels 2018 net
operating income, or 12.6x the hotels 2018 EBITDA.
I am extremely pleased with our continued progress on our capital recycling efforts,
having now sold 18
non-core
assets for over $750 million since our formation in 2017, commented Thomas J. Baltimore, Jr., Chairman and Chief Executive Officer of Park. As previously disclosed,
proceeds from the sales of these three assets will help to meaningfully reduce our net leverage ahead of the recently announced proposed merger with Chesapeake Lodging Trust.
About Park Hotels & Resorts
Park
Hotels & Resorts Inc. (NYSE: PK) is the second largest publicly traded lodging real estate investment trust with a diverse portfolio of market-leading hotels and resorts with significant underlying real estate value. Parks portfolio
currently consists of 48 premium-branded hotels and resorts with over 29,000 rooms located primarily in prime U.S. markets with high barriers to entry. For additional information, please visit Parks website at www.pkhotelsandresorts.com.
Additional Information about the Proposed Transaction and Where to Find It
In connection with the proposed transaction, on June 14, 2019 Park filed with the SEC a registration statement on Form
S-4
(which has not yet been declared effective) that includes a preliminary proxy statement of Chesapeake Lodging Trust (Chesapeake) and also constitutes a preliminary prospectus of Park. Park and
Chesapeake also plan to file other relevant documents with the SEC regarding the proposed transaction. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE PROXY STATEMENT/PROSPECTUS AND OTHER RELEVANT DOCUMENTS FILED WITH THE SEC, WHEN THEY BECOME
AVAILABLE, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. The