Park Hotels & Resorts has closed on the sale of the 508-room Hilton Miami Airport for $118.25 million, or $233,000 per key. The REIT did not announce the buyer but a separate press release from MCR announcing its purchase of the 508-room Hilton Miami Airport Blue Lagoon suggests it acquired the property from Park Hotels.
The sale price represents a 6.2% cap rate on 2019 net operating income, according to Park Hotels. Proceeds from the sale will be used to pay off the outstanding $50 million revolver balance and for general corporate purposes.
The sale is part of the company's plan to recycle capital out of non-core hotels, says CEO Thomas J. Baltimore, Jr. "Over the last twelve months, Park has sold eight hotels for over $435 million, with proceeds used to pay down debt and buy back common stock at a significant discount to NAV," he says in prepared remarks.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
*May exclude premium content
Already have an account?
Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
