NATIONAL REPORT—Hotel deals are getting done. Park Hotels & Resorts, MCR, and Commerz Real have recently participated in transactions. Here are the details.
Park Hotels & Resorts Sells Three Non-Core Assets for $166M
Park Hotels & Resorts Inc. has closed on the sales of three non-core domestic assets for combined gross proceeds of $166 million, or $151,000 per key. The three hotels, the 507-room Hilton Atlanta Airport in Atlanta; the 317- room Hilton New Orleans Airport in New Orleans; and the 274-room Embassy Suites Parsippany in Parsippany, NJ, are located in non-core airport and suburban markets and had a combined 2018 RevPAR of $109, or approximately 37% below Park’s 2018 portfolio average. When adjusted for Park’s anticipated capital expenditures of $50.5 million, or $46,000 per key, the combined sale price represents a 6.9% capitalization rate on the three hotels’ 2018 net operating income, or 12.6x the hotels’ 2018 EBITDA.
MCR Acquires the Residence Inn by Marriott Albuquerque Airport
MCR, the sixth-largest hotel owner-operator in the United States, has acquired the 110-room Residence Inn by Marriott Albuquerque Airport. The acquisition price was not disclosed.
Commerz Real Acquires Hotel in Four Frankfurt
Commerz Real has acquired the hotel and retail areas in “Terra,” one of the four high-rise towers in the “Four Frankfurt” quarter development currently under construction on land formerly occupied by Deutsche Bank, for its open-ended real estate fund Hausinvest. The seller is the project developer Groß & Partner; it was agreed that confidentiality be maintained on the purchase price. The transaction was executed as a forward purchase, i.e. the purchase will become due with the turn-key delivery of the areas, probably in the first quarter of 2024.