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Park Hotels & Resorts has sold two of its San Francisco hotel properties in two separate transactions. The company sold Le Meridien San Francisco and Hotel Adagio for a total of $303.5 million, representing a 6.1% cap rate on 2019 net operating income, including capital expenditures. The sales price equates to $572,000 per key for the 531-room portfolio.

As a result of these sales, Park Hotels & Resorts San Francisco exposure will shrink by 210 basis points to 14.6%. The 360-room Le Meridien San Francisco sold for $221.5 million, representing a 5.9% cap rate on 2019 net operating income, including capital expenditures. The 171-room Hotel Adagio, Autograph Collection sold for $82 million, representing a 6.6% cap rate on 2019 operating income when adjusted for capital expenditures.

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.

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