Park Hotels & Resorts Sells 11 Hotels For $317M

Embassy Suites by Hilton Atlanta Perimeter Center

McLEAN, VA–Park Hotels & Resorts announced it has closed on the sale of 11 non-core assets across three separate transactions for total gross proceeds of $317 million, or $136,000 per key. The sales included a portfolio of three Embassy Suites hotels, a portfolio of seven UK hotels and one South African hotel. 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 of 7.9% excluding capex, or 14.8x the portfolio’s projected 2017 EBITDA, which is 10.7x excluding capex.

The REIT is executing well on its capital recycling plan, selling off its non-core asset to focus on its strategic markets and holdings, Marc Magazine, executive managing director of Savills Studley, tells GlobeSt.com.