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Park Hotels & Resorts Announces Sale of Hyatt Centric Fisherman's Wharf for $80 Million

Strategic Insights

— 1 min read

Park Hotels & Resorts Inc. (NYSE: PK) today announced the sale of the 316-room Hyatt Centric Fisherman's Wharf located in San Francisco, CA, for $80 million. This transaction represents a significant milestone in Park's strategy to dispose of non-core hotel assets, with a focus on improving the quality of its iconic portfolio. The sale price reflects 64.0x 2024 EBITDA of the hotel, indicating a substantial return on investment for Park. The proceeds from the sale will be used to fund ongoing return on investment projects in Park's portfolio and for other general corporate purposes.

Key Takeaways:

  • Park Hotels & Resorts has announced the sale of the 316-room Hyatt Centric Fisherman's Wharf in San Francisco, CA for $80 million, or $253,000 per key.
  • The sale price represents 64.0x 2024 EBITDA of the hotel, demonstrating a substantial return on investment.
  • The sale is part of Park's strategic objective to dispose of $300 million to $400 million of non-core hotel assets in 2025.
  • Proceeds from the sale will be allocated towards ongoing return on investment projects and general corporate purposes.
  • The transaction reflects Park's continued commitment to improving the quality of its iconic portfolio and enhancing its liquidity position and financial flexibility.
  • Since 2017, Park has sold or disposed of 46 hotels for over $3 billion, reshaping its portfolio and strengthening its long-term growth prospects.
  • Park remains focused on allocating capital to unlock the embedded value in its portfolio and maximize shareholder returns.

Statistics:

  • Sale price: $80 million
  • Number of rooms: 316
  • Sale price per key: $253,000
  • Multiple of EBITDA: 64.0x
  • Disposition of non-core hotel assets target: $300 million to $400 million in 2025
  • Total hotels sold or disposed of since 2017: 46
  • Total consideration for hotel sales since 2017: over $3 billion

Sources:

  • Park Hotels & Resorts Inc. (NYSE: PK)
  • Business Wire
  • Securities and Exchange Commission (SEC)

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