Park Hotels Resorts Executes Definitive Contracts to Sell Two of Its San Francisco Hotels and Provides an Update on Hotel Reopenings and Operating Trends
TYSONS, Va., July 13, 2021 (GLOBE NEWSWIRE) -- Park Hotels Resorts Inc. (Park or the Company) (NYSE:PK) today announced that it has entered into two separate, definitive contracts to sell the 360-room Le Meridien San Francisco and the 171-room Hotel Adagio, Autograph Collection (San Francisco, CA) for total proceeds of $303.5 million, or an average sale price of approximately $572,000 per key. When adjusted for Parks anticipated capital expenditures (capex), the blended sale price represents a 6.1% capitalization rate on 2019 net operating income (6.7% excluding capex), or 14.4x 2019 EBITDA (13.2x excluding capex). Management currently expects each of the transactions to close within the next 60 days.
Park Hotels Resorts Executes Definitive Contracts to Sell Two of Its San Francisco Hotels and Provides an Update on Hotel Reopenings and Operating Trends
TYSONS, Va., July 13, 2021 (GLOBE NEWSWIRE) -- Park Hotels Resorts Inc. (Park or the Company) (NYSE:PK) today announced that it has entered into two separate, definitive contracts to sell the 360-room Le Meridien San Francisco and the 171-room Hotel Adagio, Autograph Collection (San Francisco, CA) for total proceeds of $303.5 million, or an average sale price of approximately $572,000 per key. When adjusted for Parks anticipated capital expenditures (capex), the blended sale price represents a 6.1% capitalization rate on 2019 net operating income (6.7% excluding capex), or 14.4x 2019 EBITDA (13.2x excluding capex). Management currently expects each of the transactions to close within the next 60 days.