{"id":2729,"date":"2021-05-08T13:15:40","date_gmt":"2021-05-08T18:15:40","guid":{"rendered":"https:\/\/1reason.com\/re\/park-hotels-resorts-announces-the-sale-of-the-w-new-orleans-french-quarter-and-provides-an-update-on-hotel-reopenings-and-operating-trends\/2729\/"},"modified":"2021-05-09T08:15:40","modified_gmt":"2021-05-09T13:15:40","slug":"park-hotels-resorts-announces-the-sale-of-the-w-new-orleans-french-quarter-and-provides-an-update-on-hotel-reopenings-and-operating-trends","status":"publish","type":"post","link":"https:\/\/1reason.com\/re\/park-hotels-resorts-announces-the-sale-of-the-w-new-orleans-french-quarter-and-provides-an-update-on-hotel-reopenings-and-operating-trends\/2729\/","title":{"rendered":"Park Hotels & Resorts Announces the Sale of the W New Orleans \u2013 French Quarter and Provides an Update on Hotel Reopenings and Operating Trends"},"content":{"rendered":"
When adjusted for Park\u2019s anticipated capital expenditures (\u201ccapex\u201d), the sale price represents a 4.3% capitalization rate on the Hotel\u2019s 2019 net operating income (5.8% excluding capex), or 17.9x the Hotel\u2019s 2019 EBITDA (13.3x excluding capex). Proceeds from the sale will be used to repay debt. <\/p>\n

The sale of the Hotel marks the 25th<\/sup> non-core hotel that Park has sold or disposed of since its spin-off from Hilton in January 2017, with gross proceeds from these 25 hotels totaling over $1.2 billion. Since the Company\u2019s acquisition of Chesapeake Lodging Trust in September 2019, it has now sold six non-core hotels as part of its ongoing strategy to de-lever its balance sheet and transform its portfolio.<\/p>\n

Operational Update<\/u><\/strong>
Park also announced that the Company recently reopened three West Coast hotels due to improving demand trends in their respective markets. The 360-room Le Meridien San Francisco and the 171-room Hotel Adagio, Autograph Collection, both located in San Francisco, as well as the 850-room DoubleTree Hotel Seattle Airport, all reopened in late March. Park now has 52 out of 59 hotels open, accounting for nearly 80% of the Company\u2019s total room count. The Company\u2019s seven remaining suspended hotels are currently expected to reopen over the next couple of quarters as travel restrictions ease and demand recovers.<\/p>\n

The Company continues to witness encouraging improvements in demand, with occupancy at its consolidated hotels increasing from 21% in January to nearly 33% in March, while the portfolio achieved positive EBITDA in March with nearly half of all open consolidated hotels generating positive EBITDA. Park\u2019s hotels located in leisure-oriented destinations or submarkets have recorded strong increases in leisure demand over the latter half of the first quarter and into the second quarter. As a result of the recent strong performance, Park\u2019s monthly burn rate decreased to $26 million in March from the average monthly burn rate of $42 million the company reported during the fourth quarter 2020.<\/p>\n

\u201cI am pleased to announce our first non-core asset sale since the onset of the COVID-19 pandemic at very strong pricing amidst encouraging buyer demand for premium, well-located hotels in markets with high barriers to entry,\u201d stated Thomas J. Baltimore, Jr., Chairman and CEO of Park. \u201cThe sale of the W New Orleans \u2013 French Quarter helps to streamline our portfolio to focus our resources on our larger assets as well as reduce our exposure in a market where we already have a strong presence with our 1,622-room Hilton Riverside hotel. We remain laser-focused on executing on our strategic priorities, including reopening our hotels, reducing our burn rate and further de-levering our balance sheet, as we enter a promising period of demand recovery over the coming months. Operationally, leisure demand trends continue to improve at a faster pace than we had initially anticipated, with a broader based recovery across all demand segments expected over the back half of 2021 and well into 2022.\u201d<\/p>\n

About Park Hotels & Resorts<\/u><\/strong><\/strong>
Park 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\u2019s portfolio currently consists of 59 premium-branded hotels and resorts with over 33,000 rooms primarily located in prime city center and resort locations. Visit www.pkhotelsandresorts.com<\/a> for more information.<\/p>\n

For more information, contact:<\/strong>
Ian Weissman
Senior Vice President, Corporate Strategy
571-302-5591
iweissman@pkhotelsandresorts.com<\/a><\/p>\n

For additional information or to receive press releases via e-mail, please visit our website at<\/em>
www.pkhotelsandresorts.com<\/em><\/p>\n<\/p>\n

<\/div>\n","protected":false},"excerpt":{"rendered":"

\n

TYSONS, Va., April 23, 2021 (GLOBE NEWSWIRE) — Park Hotels & Resorts Inc. (NYSE: PK) (\u201cPark\u201d or the \u201cCompany\u201d) today announced that it has closed on the sale of the 97-room W New Orleans \u2013 French Quarter (the \u201cHotel\u201d) located in New Orleans, LA, for gross proceeds of approximately $24.1 million, or $249,000 per key.<\/p>\n<\/div>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"","sticky":false,"template":"","format":"standard","meta":[],"categories":[11],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/1reason.com\/re\/wp-json\/wp\/v2\/posts\/2729"}],"collection":[{"href":"https:\/\/1reason.com\/re\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/1reason.com\/re\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/1reason.com\/re\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/1reason.com\/re\/wp-json\/wp\/v2\/comments?post=2729"}],"version-history":[{"count":1,"href":"https:\/\/1reason.com\/re\/wp-json\/wp\/v2\/posts\/2729\/revisions"}],"predecessor-version":[{"id":2740,"href":"https:\/\/1reason.com\/re\/wp-json\/wp\/v2\/posts\/2729\/revisions\/2740"}],"wp:attachment":[{"href":"https:\/\/1reason.com\/re\/wp-json\/wp\/v2\/media?parent=2729"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/1reason.com\/re\/wp-json\/wp\/v2\/categories?post=2729"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/1reason.com\/re\/wp-json\/wp\/v2\/tags?post=2729"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}