TYSONS, Va.--(BUSINESS WIRE)--
Park Hotels & Resorts Inc. (“Park”) (NYSE:PK) today announced that it
has closed on the sale of the 601-room Hilton Berlin (the “Hotel”)
located in Berlin, Germany, for gross proceeds to the joint venture
owners of the entities that own the Hotel of €297 million, before
customary closing adjustments. The gross proceeds equate to
approximately $350 million, or $583,000 per key. Park’s pro rata share
of gross proceeds was approximately $140 million. The sale price
represents an EBITDA multiple of approximately 20x the Hotel’s 2017
EBITDA.
The sale of the Hotel marks the 13th hotel that Park has sold
in 2018 and the 10th hotel located in an international market. The sale
exemplifies Park’s strategy of recycling capital out of non-core assets
and reducing its exposure to international markets as well as joint
venture interests. Following the sale, Park now has ownership interests
in four hotels outside the U.S., accounting for approximately 1% of
Adjusted EBITDA, down from 14 hotels held at the beginning of the year,
which represented approximately 5% of 2017 Adjusted EBITDA.
“We are excited to announce the execution of another non-core asset sale
at extremely favorable pricing. We have been laser-focused on reshaping
our portfolio and maximizing value for our stockholders, and we are
pleased that this sale helps to reduce our exposure to international
markets, while further simplifying the ownership structure of our
assets,” commented Thomas J. Baltimore, Jr., Chairman and Chief
Executive Officer of Park. “Since the start of the year, we have
successfully sold over $500 million in non-core assets. We continue to
be impressed by the strong demand for hotel assets and are very
encouraged as we begin the second phase of our capital recycling
program.”
Subsequent to the transaction closing, Park’s Board declared a special
cash dividend of $0.45 per share (or approximately $90 million) to be
paid on July 16th to stockholders of record as of June 29th.
This special dividend is in addition to the previously announced regular
quarterly dividend of $0.43 per share declared by Park’s Board on April
27th for a total of $0.88 per share to be distributed.
About Park Hotels & Resorts
Park Hotels & Resorts Inc. (NYSE: PK) is the second largest publicly
traded lodging real estate investment trusts with a diverse portfolio of
market-leading hotels and resorts with significant underlying real
estate value. Park’s portfolio currently consists of 54 premium-branded
hotels and resorts with over 32,000 rooms primarily located in key U.S.
markets with high barriers to entry. For additional information, please
visit Park's website at www.pkhotelsandresorts.com.
For additional information or to receive press releases via e-mail,
please visit our website at
www.pkhotelsandresorts.com
View source version on businesswire.com: https://www.businesswire.com/news/home/20180518005101/en/
Park Hotels & Resorts Inc.
Ian Weissman, 571-302-5591
Senior
Vice President, Corporate Strategy
[email protected]
Source: Park Hotels & Resorts Inc.