Park Hotels & Resorts Inc. Completes the Sale of the Hotel Indigo San Diego Gaslamp Quarter and Courtyard Washington Capitol ...
June 30 2021 - 4:15PM
Park Hotels & Resorts Inc. (“Park”) (NYSE:PK) today announced
that it has closed on the sale of the 210-room Hotel Indigo San
Diego Gaslamp Quarter in San Diego, CA and the 204-room Courtyard
Washington Capitol Hill Navy Yard in Washington, DC, for combined
gross proceeds of $149 million, or approximately $360,000 per key.
When adjusted for Park’s anticipated capital expenditures
(“capex”), the sale price represents a 7.0% capitalization rate on
2019 net operating income (7.4% excluding capex), or 12.8x 2019
EBITDA (12.2x excluding capex). Proceeds from the sale will be used
to fully repay debt currently outstanding on the Company’s
revolving credit facility and partially repay debt currently
outstanding on its one remaining bank term loan.
“I am very pleased with the progress we have made towards our
targeted goal of $300 million to $400 million of asset sales in
2021. Year to date, we have sold three hotels for total proceeds of
$173.1 million, or 13.5x 2019 EBITDA, on a gross basis. The sale of
these two hotels represents our ongoing commitment to reduce net
leverage and better position our portfolio for long-term,
sustainable growth,” commented Thomas J. Baltimore, Jr., Chairman
and Chief Executive Officer of Park.
Forward-Looking StatementsThis press release
contains forward-looking statements within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended. Forward-looking
statements include, but are not limited to, statements related to
Park’s current expectations regarding use of proceeds from the sale
of properties. Forward-looking statements include all statements
that are not historical facts, and in some cases, can be identified
by the use of forward-looking terminology such as the words
“outlook,” “believes,” “expects,” “potential,” “continues,” “may,”
“will,” “should,” “could,” “seeks,” “projects,” “predicts,”
“intends,” “plans,” “estimates,” “anticipates,” “hopes” or the
negative version of these words or other comparable words. You
should not rely on forward-looking statements since they involve
known and unknown risks, uncertainties and other factors which are,
in some cases, beyond the Company’s control and which could
materially affect its results of operations, financial condition,
cash flows, performance or future achievements or events.
Currently, one of the most significant factors continues to be the
adverse effect of COVID-19, including possible resurgences, on the
Company’s financial condition, results of operations, cash flows
and performance, its hotel management companies and its hotels’
tenants, and the global economy and financial markets. COVID-19 has
significantly affected the Company’s business, and the extent to
which COVID-19 continues to affect the Company, its hotel managers,
tenants and guests at the Company’s hotels will depend on future
developments, which are highly uncertain and cannot be predicted
with confidence, including the scope, severity and duration of the
pandemic, the actions taken to contain the pandemic or mitigate its
effect, the emergence of virus variants, the efficacy, availability
and deployment of vaccinations and other treatments to combat
COVID-19, including public adoption rates of COVID-19 vaccines,
additional closures that may be mandated or advisable even after
the reopening of certain of the Company’s hotels on a limited
basis, whether due to an increased number of COVID-19 cases or
otherwise, and the direct and indirect economic effects of the
pandemic and containment measures, among others. Moreover,
investors are cautioned to interpret many of the risks identified
in the risk factors included in the Company’s Annual Report on Form
10-K for the year ended December 31, 2020 as being heightened as a
result of the ongoing and numerous adverse impacts of COVID-19.
Forward-looking statements involve risks, uncertainties and
assumptions. Actual results may differ materially from those
expressed in these forward-looking statements. You should not put
undue reliance on any forward-looking statements and Park urges
investors to carefully review the disclosures Park makes concerning
risk and uncertainties in Item 1A: “Risk Factors” in Park’s Annual
Report on Form 10-K for the year ended December 31, 2020, as such
factors may be updated from time to time in Park’s filings with the
SEC, which are accessible on the SEC’s website at www.sec.gov.
Except as required by law, Park undertakes no obligation to update
or revise publicly any forward-looking statements, whether as a
result of new information, future events or otherwise.
About Park Hotels &
ResortsPark is the second largest publicly traded
lodging REIT with a diverse portfolio of market-leading hotels and
resorts with significant underlying real estate value. Park’s
portfolio currently consists of 57 premium-branded hotels and
resorts with over 32,000 rooms primarily located in prime city
center and resort locations. Visit www.pkhotelsandresorts.com for
more information.
For more information, contact:Ian
WeissmanSenior Vice President, Corporate
Strategy571-302-5591iweissman@pkhotelsandresorts.com
For additional information or to receive press
releases via e-mail, please visit our website
atwww.pkhotelsandresorts.com
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