Park Hotels & Resorts has completed the divestment of the three non-core hotel properties for a total of $166m, or approximately $151,000 per key.
The three hotels are Hilton Atlanta Airport, Hilton New Orleans Airport and the Embassy Suites Parsippany.
Hilton Atlanta Airport is located in Atlanta, Georgia and has 507 rooms; Hilton New Orleans Airport in New Orleans, Louisiana has 317 rooms; and the Embassy Suites Parsippany in Parsippany, New Jersey has 274 rooms.
The three hotels are located in non-core airport and suburban markets.
Park Hotels & Resorts chairman and chief executive officer Thomas J Baltimore said: “I am extremely pleased with our continued progress on our capital recycling efforts, having now sold 18 non-core assets for over $750 million since our formation in 2017.
“As previously disclosed,proceeds from the sales of these three assets will help to meaningfully reduce our net leverage ahead of the recently announced proposed merger with Chesapeake Lodging Trust.”
The three hotels had combine revenue per available room (RevPAR) of $109 in 2018, which is approximately 37% below the hotel company’s portfolio average in 2018.
When adjusted for the firm’s anticipated capital expenditures of $50.5m, or $46,000 per key, the total sale price represents a 6.9% capitalisation rate on the net operating income of the three hotels in 2019
Park Hotels & Resort is a publicly traded lodging real estate investment trust. Its current portfolio has 48 premium-branded hotels and resorts and over 29,000 rooms in the US.