Park Hotels & Resorts Inc. Closes Sale of the Conrad Dublin
Park Hotels & Resorts Inc. ("Park") (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 (the "Hotel") 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."
Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, but are not limited to, statements related to Park's current expectations regarding the performance of its business, financial results, liquidity and capital resources, the effects of competition and the effects of future legislation or regulations, and other non-historical statements. Forward-looking statements include all statements that are not historical facts, and in some cases, can be identified by the use of forward-looking terminology such as the words "outlook," "believes," "expects," "potential," "continues," "may," "will," "should," "could," "seeks," "projects," "predicts," "intends," "plans," "estimates," "anticipates" or the negative version of these words or other comparable words.
Forward-looking statements involve risks, uncertainties and assumptions. Actual results may differ materially from those expressed in these forward-looking statements. You should not put undue reliance on any forward-looking statements and Park urges investors to carefully review the disclosures Park makes concerning risk and uncertainties in Item 1A: "Risk Factors" in Park's Annual Report on Form 10-K for the year ended December 31, 2018, as such factors may be updated from time to time in Park's filings with the SEC, which are accessible on the SEC's website at www.sec.gov. Except as required by law, Park undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.