NATIONAL REPORT—Hotel Business is tracking transactions, including a $51.4-million sale by Park Hotels & Resorts. Here are the details.
Park Hotels & Resorts Sells Pointe Hilton Squaw Peak Resort for $51.4M
Park Hotels & Resorts Inc. has closed on the sale of the 563-room Pointe Hilton Squaw Peak Resort located in Phoenix for gross proceeds of $51.4 million, or $91,200 per key before customary closing costs. When adjusted for Park’s anticipated capital expenditures of $28 million for the hotel, the sale price represents a 5.2% capitalization rate on the hotel’s projected 2018 net operating income (8.0% excluding capex), or 13.9x the hotel’s projected 2018 EBITDA. Proceeds from the sale will be used for general business purposes, which may include funding future capital projects.
This latest transaction represents the 14th hotel that Park has sold over the prior year and exemplifies Park’s strategy of further improving the overall quality of its portfolio by recycling out of non-core hotels. In 2018, RevPAR at the hotel is estimated at $118, or approximately 30% below the portfolio average.
“I am thrilled with the progress we have made on capital recycling, having sold a total of 14 hotels over the last 11 months for gross proceeds of $570 million—improving portfolio RevPAR by over $6, while dramatically reducing Park’s exposure to international markets. We remain laser-focused on reshaping our portfolio and maximizing value for our stockholders and anticipate executing on additional asset sales in the future,” commented Thomas J. Baltimore Jr., chairman and CEO of Park.
Sun Hill Properties Continues Expansion with Purchase of Colorado Hotels
Sun Hill Properties Inc., the owner and operator of the Hilton Los Angeles/Universal City in the heart of that city’s entertainment district, is continuing its expansion with the acquisition of two Colorado hotel properties.
The properties, which are part of the Marriott family and predominantly appeal to business travelers, were purchased for an undisclosed price. The TownePlace Suites Denver Southwest, located in Littleton, CO, has 99 suites and a location near the Denver Botanic Gardens and the headquarters of Johns Manville. The TownePlace Suites in Colorado Springs features 94 suites and sits near Pikes Peak and the Garden of the Gods Visitor and Nature Center.
Sun Hill plans to retain the current staff and property names—and intends to invest in upgrades and renovations at the two Colorado properties.
HFF Arranges $11.7M Financing for Harbor Hotel Provincetown in Provincetown, MA
HFF has arranged the $11.7-million financing of the 129-key Harbor Hotel Provincetown in Provincetown, MA. The HFF team worked on behalf of the borrower, subsidiary entities of funds managed by Linchris Hotel Corporation, to secure a seven-year, fixed-rate acquisition loan through HarborOne Bank.
RobertDouglas Advises AutoCamp in Securing Growth Joint Venture with Whitman Peterson
RobertDouglas has advised AutoCamp in their selection of Whitman Peterson as a strategic capital and growth partner. Under the agreement, Whitman Peterson, a real estate private equity company specializing in helping drive growth of target sector platforms, has led a dedicated capital commitment of $115 million focused on acquiring and redeveloping properties for AutoCamp’s expansion. As part of the transaction, Whitman Peterson has also invested in the AutoCamp operating company.
