INTERNATIONAL REPORT—Park Hotels & Resorts, HREC and Stonebridge Companies have all closed on hotel sales. Here’s a closer look at the transactions:
Park Hotels & Resorts Closes on Two Sales
Park Hotels & Resorts Inc. has closed on two separate sales of the 197-room Embassy Suites by Hilton Washington, DC Georgetown and the 503-room Hilton São Paulo Morumbi for combined gross proceeds of approximately $208 million before customary closing costs and adjustments.
The Embassy Suites DC, located in Washington, DC, was sold for gross proceeds of $90.4 million, or $459,000 per key before customary closing costs and adjustments. When adjusted for Park’s anticipated capital expenditures, the sale price represents a 5.9% capitalization rate on the hotel’s 2019 net operating income (6.3% excluding capex), or 14.8x the hotel’s 2019 EBITDA (13.8x excluding CapEx).
The Hilton São Paulo was sold for gross proceeds of $117.5 million, or $234,000 per key before customary closing costs and adjustments. When adjusted for Park’s anticipated capital expenditures, the sale price represents a 5.8% capitalization rate on the hotel’s 2019 net operating income (6.6% excluding CapEx), or 14.9x the hotel’s 2019 EBITDA (13.1x excluding capex).
HREC Arranges Sale of the Hampton Inn Pittsburgh-McKnight Pittsburgh
HREC Investment Advisors has arranged the sale of the 107-guestroom Hampton Inn Pittsburgh-McKnight located in Pittsburgh. HREC Investment Advisors exclusively represented the seller on this transaction. The hotel is close to downtown Pittsburgh, the UPMC Passavant Medical Center, Triangle Tech, University of Pittsburgh and Carnegie Mellon University.
Stonebridge Companies Acquires Residence Inn by Marriott Herndon Reston
Stonebridge Companies has acquired and will manage the 168-room Residence Inn by Marriott Herndon Reston in Herndon, VA. The acquisition is Stonebridge Companies’ second in less than three months and third since late 2018. The Residence Inn by Marriott Herndon Reston is close to Washington Dulles International Airport and the Reston Town Center.