MCLEAN, Va.--(BUSINESS WIRE)--
Park Hotels & Resorts Inc. (“Park”) (NYSE:PK) today announced that it
closed on the sale of 11 non-core assets, 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).
“I am thrilled with our team’s success in executing our stated strategy
of recycling capital out of non-core assets with significant expected
capex, while dramatically reducing our exposure to international
markets,” commented Thomas J. Baltimore, Jr., Chairman and Chief
Executive Officer of Park. “Since the start of the year, we have closed
on 12 asset sales totaling nearly $379 million with an average RevPAR of
just $106, or 36% lower than Park’s pro-forma RevPAR on a trailing
12-month basis, while saving an estimated $132 million of anticipated
capex over the next few years.”
Embassy Suites Portfolio
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.
U.K. Portfolio
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.
Hilton Durban
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.
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 55 premium-branded
hotels and resorts with over 32,000 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 at
www.pkhotelsandresorts.com
View source version on businesswire.com: http://www.businesswire.com/news/home/20180227005441/en/
Park Hotels & Resorts Inc.
Ian Weissman, 703-584-7441
Senior
Vice President, Corporate Strategy
[email protected]
Source: Park Hotels & Resorts Inc.