Park Hotels & Resorts Inc. (NYSE:PK) today announced that it and its joint venture partners have closed on the sale of their interests in the company that owns the 192-room Conrad Dublin located in Dublin, Ireland, for gross proceeds of €116.4 million, before customary closing adjustments and debt repayment.
The gross proceeds equate to approximately $128 million, or $667,000 per key. Park’s pro rata share of gross proceeds was approximately $61 million. The sale price represents a 3.9% capitalization rate on the Hotel’s projected 2019 net operating income, or 22.1x the Hotel’s projected 2019 EBITDA.
“We are excited to announce the execution of this non-core asset sale at very attractive pricing, which reduces our international exposure as well as our ownership in joint venture interests,” commented Thomas J. Baltimore, Jr., Chairman and Chief Executive Officer of Park. “I am incredibly proud of our team’s capital recycling efforts over the past two years, which include selling 19 non-core assets for approximately $815 million and acquiring 18 high-quality assets in the recently completed $2.5-billion acquisition of Chesapeake Lodging Trust. The sale of the Conrad Dublin marks the beginning of a series of asset sales being executed to reduce leverage in the near term, delivering on our stated objective.”
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