TYSONS, Va.--(BUSINESS WIRE)--
Park Hotels & Resorts Inc. (“Park”) (NYSE:PK) today announced that it
has closed on the sale of the 152-room Hilton Nuremberg hotel (the
“Hotel”) located in Nuremberg, Germany for gross proceeds of $17.5
million, or $115,000 per key. When adjusted for Park’s anticipated
capital expenditures (“capex”) of $10.1 million for the Hotel, the sale
price represents a 3.5% capitalization rate on the Hotel’s 2018 net
operating income (5.6% excluding capex), or 21.2x (13.4x excluding
capex) the Hotel’s 2018 EBITDA. Proceeds from the sale will be used for
general business purposes, which may include funding future capital
projects. Park has now sold 15 non-core assets for nearly $590 million
over the last 18 months.
“I am thrilled with the progress we have made on our non-core asset
sales, with this latest transaction reducing our international exposure
to just three hotels, accounting for approximately 1% of Hotel Adjusted
EBITDA. The sale also further improves the overall quality of our
portfolio, as the Hotel’s 2018 RevPAR was $105, or 40% below our
portfolio average. 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 51 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 atwww.pkhotelsandresorts.com
View source version on businesswire.com: https://www.businesswire.com/news/home/20190327005736/en/
Ian Weissman
Senior Vice President, Corporate Strategy
571-302-5591
[email protected]
Source: Park Hotels & Resorts Inc.