Park Hotels & Resorts Inc. has sold the 182-room Ace Hotel Downtown Los Angeles, located in Los Angeles, CA, for $117.0 million.
“We are very pleased to announce the successful execution of our 20th non-core asset sale, which helps deliver on our stated objective of reducing leverage following our recent acquisition of Chesapeake Lodging Trust,” commented Thomas J. Baltimore, Jr., Chairman and Chief Executive Officer of Park.
“We have now sold approximately $1 billion in assets since our formation less than three years ago, taking advantage of strong buyer interest and our deep relationships with the investment community in order to achieve our strategic goals. We remain confident in our ability to deliver on our near-term objectives of upgrading the quality of the portfolio while also maintaining a low-levered balance sheet, which will serve us well in all phases of the lodging cycle,” he added.
”When adjusted for Park’s anticipated capital expenditures (“capex”), the sale price represents a 5.4% capitalization rate on the Hotel’s projected 2019 net operating income, or 16.0x the Hotel’s projected 2019 EBITDA,” said in the statement.
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