Park Hotels & Resorts closes on sale of $317 million of non-core assets
Staff Writer |
Park Hotels & Resorts announced that it closed on the sale of 11 non-core assets.
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This is including a portfolio of three Embassy Suites hotels, a portfolio of seven U.K. hotels and one South African hotel for total gross proceeds of $317 million, equating to $136,000 per key across three separate transactions.
When adjusted for Park’s anticipated capital expenditures of $123 million for the 11 hotels, the proceeds represent a 5.7% capitalization rate on the portfolio’s projected 2017 net operating income (7.9% excluding capex), or 14.8x the portfolio’s projected 2017 EBITDA (10.7x excluding capex).
The Embassy Suites portfolio sold for total gross proceeds of approximately $95.8 million, equating to $142,000 per key.
The portfolio consists of the 241-room Embassy Suites by Hilton Atlanta Perimeter Center in Atlanta, Georgia, the 236-room Embassy Suites by Hilton San Rafael Marin County in San Rafael, California, and the 199-room Embassy Suites by Hilton Kansas City Overland Park in Overland Park, Kansas.
The U.K. portfolio sold for total gross proceeds of approximately $189 million, equating to $141,000 per key.
The portfolio consists of the 188-room Hilton London Islington in London, U.K., the 173-room Hilton Bath City in Bath, U.K., the 184-room Hilton Edinburgh Grosvenor in Edinburgh, U.K., the 198-room Hilton Belfast in Belfast, U.K., the 278-room Hilton Blackpool in Blackpool, U.K., the 138-room Hilton Milton Keynes in Milton Keynes, U.K. and the 175-room Hilton Coylumbridge in Coylumbridge, U.K.
In addition to the above-mentioned sales, Park also closed on the sale of the 327-room Hilton Durban Hotel located in Durban, South Africa for gross proceeds of approximately $32.5 million, equating to $99,000 per key. ■