Park Hotels & Resorts Inc. Announces Disposition of Its 25% Joint Venture Interest in Hilton San Diego Bayfront to Sunstone Hotel Investors, Inc.
01 Giugno 2022 - 12:00PM
Park Hotels & Resorts Inc. (“Park”) (NYSE:PK) announced that it
has entered into a definitive agreement with affiliates of Sunstone
Hotel Investors, Inc. (“Sunstone”) (NYSE:SHO) for Park to sell its
25% interest in the joint venture owning the 1,190-room Hilton San
Diego Bayfront (the “Hilton Bayfront”) to Sunstone for a sale price
of $102 million plus Park’s allocated share of reserves and
working capital.
The sale price represents a $628 million
valuation for the Hilton Bayfront, or approximately $528,000 per
key, after accounting for the $220 million secured loan in place on
the asset. The sale price represents a 6.5% capitalization rate on
the hotel’s 2019 net operating income, or 13.4x the Hotel’s 2019
EBITDA. The closing will be subject to customary closing conditions
and third-party consents.
“We are pleased to announce the disposition of our 25% interest
in our Hilton Bayfront joint venture,” commented Thomas
J. Baltimore, Jr., Chairman and Chief Executive Officer of
Park. “While the Hilton Bayfront is a superb asset with a promising
future, the right path for Park is to exit this minority interest
at a fair price and redeploy capital toward other corporate uses
including debt reduction, share repurchases, and ROI opportunities
within our portfolio. Upon the completion of our sale of the Hilton
Bayfront joint venture interest, we will have sold or disposed of
34 assets for over $1.8 billion since our spin-off from
Hilton. I am incredibly proud of our ongoing capital recycling
efforts and the progress we have made toward our portfolio
transformation.”
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, including expected dates that its hotels will
break even or achieve positive Hotel Adjusted EBITDA, the impact to
the Company's business and financial condition and that of its
hotel management companies, measures being taken in response to
COVID-19, the impact from macroeconomic factors (including
inflation and geopolitical conflicts), the effects of competition
and the effects of future legislation or regulations, the expected
completion of anticipated dispositions, the declaration and payment
of future dividends 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,” “hopes” or the negative
version of these words or other comparable words. You should not
rely on forward-looking statements since they involve known and
unknown risks, uncertainties and other factors which are, in some
cases, beyond the Company’s control and which could materially
affect its results of operations, financial condition, cash flows,
performance or future achievements or events. Currently, one of the
most significant factors continues to be the adverse effect of
COVID-19, including actions taken to contain the pandemic or
mitigate its effects, the emergences of virus variants and
resurgences, on the Company’s financial condition, results of
operations, cash flows and performance, its hotel management
companies and its hotels’ tenants, and the global economy and
financial markets. Investors are cautioned to interpret many of the
risks identified in the risk factors included in the Company’s
Annual Report on Form 10-K for the year ended December 31, 2021 as
being heightened as a result of the ongoing and numerous adverse
effects of COVID-19.
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, 2021, 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.
About Park Hotels &
ResortsPark is the second largest publicly traded
lodging REIT with a diverse portfolio of market-leading hotels and
resorts with significant underlying real estate value. Park’s
portfolio currently consists of 52 premium-branded hotels and
resorts with approximately 32,000 rooms primarily located in prime
city center and resort locations. Visit www.pkhotelsandresorts.com
for more information.
For more information, contact:Ian
WeissmanSenior Vice President, Corporate
Strategy571-302-5591iweissman@pkhotelsandresorts.com
For additional information or to receive press
releases via e-mail, please visit our website
at www.pkhotelsandresorts.com
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