(EDITOR’S NOTE: According to public records, the Homewood Suites by Hilton Seattle Convention Center is located at 1011 Pike Street and sold to PEG Companies for $80 million, or about $410,256 per room.)
TYSONS, Va.– Park Hotels & Resorts Inc. (NYSE: PK) (“Park”) today announced that it has closed on the sale of the 195-room Homewood Suites by Hilton Seattle Convention Center Pike Street in Seattle, WA and completed the previously-announced sale of its 25% joint venture interest in the 1,190-room Hilton San Diego Bayfront in San Diego, CA. Combined gross proceeds for the two transactions totaled $237 million, which includes Park’s $55 million pro-rata share of secured debt on the Hilton San Diego Bayfront. Excluding anticipated capital expenditures, the combined sale price represents a 6.3% capitalization rate on 2019 net operating income, or 14.0x multiple on 2019 EBITDA.Proceeds from the sales will be used for general corporate purposes.
“I am pleased with the progress we have made toward our targeted goal of $200 million to $300 million of asset sales in 2022. Year to date, we have sold interests in four hotels for combined gross proceeds of approximately $260 million at attractive pricing, with one additional non-core hotel currently under contract for $9.4 million. Our aggressive capital recycling program represents our on-going commitment to reduce net leverage and better position our portfolio for long-term, sustainable growth,” commented Thomas J. Baltimore, Jr., Chairman and Chief Executive Officer of Park.