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Park Hotels & Resorts Sells 11 Hotels For $317M

“People are looking to buy hotels again, particularly as it is clear that interest rates will rise over the next year.”

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.

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Erika Morphy

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.

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