Park Hotels & Resorts Inc. (NYSE:PK) announced last week that it closed on the sale of the 410-room Le Meridien New Orleans located in New Orleans, LA, for gross proceeds of $84.0 million, or $205,000. The sale price represents a 5.0% capitalization rate on the Hotel’s projected 2019 net operating income, or 17.1x the Hotel’s projected 2019 EBITDA.
Park (through Chesapeake Lodging before the merger between the two companies), purchased the former W Hotel in 2013 for $65 million. It reopened in 2014 as the Le Meridian.
“We are extremely pleased to close on another non-core asset sale and further de-lever the balance sheet, having materially improved our net leverage in just three months,” commented Thomas J. Baltimore, Jr., Chairman and Chief Executive Officer of Park. “With the sale of the Le Meridian New Orleans we have now sold, or otherwise disposed of, 22 non-core assets for $1.0 billion since our spin from Hilton as we continue to make progress against our strategic plan to improve the quality of our portfolio by exiting international and slower growth domestic markets.”
Park Hotels & Resorts Inc. (NYSE: PK) is the second 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 62 premium-branded hotels and resorts with over 34,000 rooms primarily located in prime U.S. markets with high barriers to entry.