Park Hotels & Resorts Executes Definitive Contract to Sell two Hotels for $149 Million; Proceeds to be Used to Further Reduce...
May 10 2021 - 6:00AM
Park Hotels & Resorts Inc. (“Park”) (NYSE:PK) today announced
that it has entered into a definitive contract to sell two assets
for combined gross proceeds of $149.0 million, or approximately
$360,000 per key. The hotels, 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, were both
acquired in September 2019 as part of Park’s acquisition by merger
of Chesapeake Lodging Trust.
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 repay debt. Management currently expects the transaction to
close within the next 45 to 60 days.
Once complete, this transaction will bring the total number of
assets sold or disposed of since spinning off from Hilton in
January 2017 to 27, with total gross proceeds of approximately $1.4
billion.
“The sale of these two hotels represents our on-going 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. “Year to date, we
have announced a total of $173 million of asset sales and are
confident about achieving our targeted goal of $300 million to $400
million of asset sales in 2021.”
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 59 premium-branded hotels and
resorts with over 33,000 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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