MCLEAN, Va.--(BUSINESS WIRE)--
Park Hotels & Resorts Inc. (“Park”) (NYSE:PK) today announced that it
closed on the sale of the 254-room Hilton Rotterdam (the “Hotel”)
located in Rotterdam, Netherlands, for gross proceeds of approximately
$62 million, equating to $245,000 per key. When adjusted for Park’s
anticipated capital expenditures (“capex”) for the Hotel, the sale price
represents a 4.8% capitalization rate on the Hotel’s projected 2017 net
operating income (5.5% excluding capex), or 17.8x the Hotel’s projected
2017 EBITDA (15.4x excluding capex).
The sale of the Hotel is consistent with Park’s strategy of recycling
capital out of non-core assets, including reducing its exposure to
international markets. Revenue per available room (“RevPAR”) for the
Hotel represents a discount of nearly 30% to Park’s pro forma RevPAR on
a trailing 12-month basis.
“I am thrilled to announce the sale of the Hilton Rotterdam, our first
non-core asset sale since launching Park just over a year ago. As
previously stated, we remain committed to our goal of creating value for
stockholders by recycling capital from lower growth assets,” commented
Thomas J. Baltimore, Jr., Chairman and Chief Executive Officer of Park.
“Our capital recycling program remains active with additional hotels
targeted for sale in 2018, a strategy we believe will dramatically
improve the overall quality of our portfolio.”
About Park Hotels & Resorts
Park Hotels & Resorts Inc. (NYSE: PK) is one of the 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 66 premium-branded
hotels and resorts with over 35,000 rooms located in prime U.S. and
international markets with high barriers to entry. For additional
information, please visit Park's website at www.pkhotelsandresorts.com.
Forward-Looking Statements
This 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 the performance of its
business, financial results, liquidity and capital resources, the
effects of competition and the effects of future legislation or
regulations and other non-historical statements. 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” or the
negative version of these words or other comparable words.
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, 2016, as such factors may be updated from time to time in
Park’s periodic 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.
For additional information or to receive press releases via e-mail,
please visit our website atwww.pkhotelsandresorts.com
View source version on businesswire.com: http://www.businesswire.com/news/home/20180201005702/en/
Park Hotels & Resorts Inc.
Ian Weissman
Senior Vice
President, Corporate Strategy
703-584-7441
[email protected]
Source: Park Hotels & Resorts Inc.