Park Hotels & Resorts Continues Disposition Strategy with Phoenix Hotel Sale
The deal marks the 14th hotel property sold by the McLean, VA-based REIT in the past year as part of its ongoing program of recycling non-core assets.
PHOENIX—Park Hotels & Resorts Inc. reports it has sold its 563-room Pointe Hilton Squaw Peak Resort here for $51.4 million.
The deal marks the 14th hotel property sold by the McLean, VA-based REIT in the past year as part of its ongoing program of recycling non-core assets. The Pointe Hilton Squaw Peak Resort transaction calculates out to $91,200 per key before closing costs. The identity of the buyer was not disclosed.
Park Hotels reports that based on its anticipated capital expenditures 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 capital expenditures), 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, the company reports.
“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,” says Thomas J. Baltimore, Jr., chairman and CEO of Park Hotels. “We remain laser-focused on reshaping our portfolio and maximizing value for our stockholders and anticipate executing on additional asset sales in the future.”
In February of last year, Park Hotels & Resorts 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.
In October 2017, an extensive $8.5-million renovation of the Pointe Hilton Squaw Peak Resort was completed.