TYSONS, Va.--(BUSINESS WIRE)--
Park Hotels & Resorts Inc. (“Park”) (NYSE:PK) today announced that it
has closed on the sale of the 563-room Pointe Hilton Squaw Peak Resort
(the “Hotel”) located in Phoenix, AZ, for gross proceeds of $51.4
million, or $91,200 per key before customary closing costs. When
adjusted for Park’s anticipated capital expenditures (“capex”) of $28
million for the Hotel, the sale price represents a 5.2% capitalization
rate on the Hotel’s projected 2018 net operating income (8.0% excluding
capex), or 13.9x the Hotel’s projected 2018 EBITDA. Proceeds from the
sale will be used for general business purposes, which may include
funding future capital projects.
This latest transaction represents the 14th hotel that Park
has sold over the prior year and exemplifies Park’s strategy of further
improving the overall quality of its portfolio by recycling out of
non-core hotels. In 2018, RevPAR at the Hotel is estimated at $118, or
approximately 30% below the portfolio average.
“I am thrilled with the progress we have made on capital recycling,
having sold a total of 14 hotels over the last 11 months for gross
proceeds of $570 million—improving portfolio RevPAR by over $6, while
dramatically reducing Park’s exposure to international markets. We
remain laser-focused on reshaping our portfolio and maximizing value for
our stockholders and anticipate executing on additional asset sales in
the future,” commented Thomas J. Baltimore, Jr., Chairman and Chief
Executive Officer of Park.
About Park Hotels & Resorts
Park Hotels & Resorts Inc. (NYSE: PK) is the second largest publicly
traded lodging real estate investment trust with a diverse portfolio of
market-leading hotels and resorts with significant underlying real
estate value. Park’s portfolio currently consists of 52 premium-branded
hotels and resorts with over 30,000 rooms located in prime 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/20190207005876/en/
Ian Weissman
Senior Vice President, Corporate Strategy
571-302-5591
[email protected]
Source: Park Hotels & Resorts Inc.