Park Hotels & Resorts Completes Sale of the Hotel Indigo San Diego Gaslamp Quarter and Courtyard Washington Capitol Hill Navy Yard
Park Hotels & Resorts Inc. ("Park") (NYSE:PK) announced that it has closed on the sale of the 210-room Hotel Indigo San Diego Gaslamp Quarter in San Diego, CA and the 204-room Courtyard Washington Capitol Hill Navy Yard in Washington, DC, for combined gross proceeds of $149 million, or approximately $360,000 per key. When adjusted for Park's anticipated capital expenditures ("capex"), the sale price represents a 7.0% capitalization rate on 2019 net operating income (7.4% excluding capex), or 12.8x 2019 EBITDA (12.2x excluding capex). Proceeds from the sale will be used to fully repay debt currently outstanding on the Company's revolving credit facility and partially repay debt currently outstanding on its one remaining bank term loan.
"I am very pleased with the progress we have made towards our targeted goal of $300 million to $400 million of asset sales in 2021. Year to date, we have sold three hotels for total proceeds of $173.1 million, or 13.5x 2019 EBITDA, on a gross basis. The sale of these two hotels represents our ongoing 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.
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