TYSONS, May 10, 2021 (GLOBE NEWSWIRE via COMTEX) --
TYSONS, Va., May 10, 2021 (GLOBE NEWSWIRE) -- Park Hotels & Resorts Inc. ("Park")
today announced that it has entered into a definitive contract to sell two assets for combined gross proceeds of $149.0 million, or approximately $360,000 per key. The hotels, the 210-room Hotel Indigo San Diego Gaslamp Quarter in San Diego, CA and the 204-room Courtyard Washington Capitol Hill Navy Yard in Washington, DC, were both acquired in September 2019 as part of Park's acquisition by merger of Chesapeake Lodging Trust.
When adjusted for Park's anticipated capital expenditures ("capex"), the sale price represents a 7.0% capitalization rate on 2019 net operating income (7.4% excluding capex), or 12.8x 2019 EBITDA (12.2x excluding capex). Proceeds from the sale will be used to repay debt. Management currently expects the transaction to close within the next 45 to 60 days.
Once complete, this transaction will bring the total number of assets sold or disposed of since spinning off from Hilton in January 2017 to 27, with total gross proceeds of approximately $1.4 billion.
"The sale of these two hotels represents our on-going commitment to reduce net leverage and better position our portfolio for long-term, sustainable growth," commented Thomas J. Baltimore, Jr., Chairman and Chief Executive Officer of Park. "Year to date, we have announced a total of $173 million of asset sales and are confident about achieving our targeted goal of $300 million to $400 million of asset sales in 2021."
About Park Hotels & Resorts
Park is the second largest publicly traded lodging REIT with a diverse portfolio of market-leading hotels and resorts with significant underlying real estate value. Park's portfolio currently consists of 59 premium-branded hotels and resorts with over 33,000 rooms primarily located in prime city center and resort locations. Visit www.pkhotelsandresorts.com for more information.
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