Park Hotels & Resorts Inc. (NYSE:PK) today announced that it closed on the sale of the 254-room Hilton Rotterdam located in Rotterdam, Netherlands, for gross proceeds of approximately $62 million, equating to $245,000 per key. When adjusted for Park’s anticipated capital expenditures for the Hotel, the sale price represents a 4.8% capitalization rate on the Hotel’s projected 2017 net operating income (5.5% excluding capex), or 17.8x the Hotel’s projected 2017 EBITDA (15.4x excluding capex).
The sale of the Hotel is consistent with Park’s strategy of recycling capital out of non-core assets, including reducing its exposure to international markets. Revenue per available room (“RevPAR”) for the Hotel represents a discount of nearly 30% to Park’s pro forma RevPAR on a trailing 12-month basis.
“I am thrilled to announce the sale of the Hilton Rotterdam, our first non-core asset sale since launching Park just over a year ago. As previously stated, we remain committed to our goal of creating value for stockholders by recycling capital from lower growth assets,” commented Thomas J. Baltimore, Jr., Chairman and Chief Executive Officer of Park. “Our capital recycling program remains active with additional hotels targeted for sale in 2018, a strategy we believe will dramatically improve the overall quality of our portfolio.”
Park Hotels & Resorts Inc. (NYSE: PK) is one of the largest publicly traded lodging real estate investment trusts with a diverse portfolio of market-leading hotels and resorts with significant underlying real estate value. Park’s portfolio currently consists of 66 premium-branded hotels and resorts with over 35,000 rooms located in prime U.S. and international markets with high barriers to entry.
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