MCLEAN, Va.--(BUSINESS WIRE)--Park Hotels & Resorts Inc. (“Park”) (NYSE:PK) today announced that it closed on the sale of the 254-room Hilton Rotterdam (the “Hotel”) 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 (“capex”) 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.”
About Park Hotels & Resorts
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. For additional information, please visit Park's website at www.pkhotelsandresorts.com.
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, 2016, as such factors may be updated from time to time in Park’s periodic 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.
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