Lodging REIT Park Hotels & Resorts has sold the 601-room Hilton Berlin in Germany for approximately $350 million.
This is Park's 13th hotel sale in 2018 and its 10th hotel in an international market. The sale aligns with Park’s strategy of recycling capital out of non-core assets and reducing its presence in international markets as well as joint venture interests.
“We are excited to announce the execution of another non-core asset sale at extremely favorable pricing. We have been laser-focused on reshaping our portfolio and maximizing value for our stockholders, and we are pleased that this sale helps to reduce our exposure to international markets, while further simplifying the ownership structure of our assets,” Thomas J. Baltimore, Jr., chairman and CEO of Park, said in a statement. “Since the start of the year, we have successfully sold over $500 million in non-core assets. We continue to be impressed by the strong demand for hotel assets and are very encouraged as we begin the second phase of our capital recycling program.”
Following the sale, Park owns four hotels outside the U.S., down from the 14 hotels the group held at the beginning of the year. These are the Hilton Sao Paulo in Brazil, the Conrad Dublin in Ireland, the Hilton Nuremberg in Germany and the Hilton Sheffield in the UK. Now, the trust has 54 hotels and resorts with more than 32,000 guestrooms worldwide.
In early February, Park sold the Hilton Rotterdam in the Netherlands in February 2018 for gross proceeds of approximately $62 million. Later in the month, the trust sold 11 hotel assets—three Embassy Suites in the U.S., seven UK hotels and one South African hotel—for $317 million.
The Embassy Suites portfolio, which included the 241-room Embassy Suites by Hilton Atlanta Perimeter Center in Georgia, the 236-room Embassy Suites by Hilton San Rafael Marin County in California and the 199-room Embassy Suites by Hilton Kansas City Overland Park in Kansas, sold for $95.8 million. The U.K. portfolio sold for about $189 million and included the 188-room Hilton London Islington, the 173-room Hilton Bath City, the 184-room Hilton Edinburgh Grosvenor in Edinburgh, Scotland, the 198-room Hilton Belfast in Ireland, the 278-room Hilton Blackpool in England, the 138-room Hilton Milton Keynes in England and the 175-room Hilton Coylumbridge in Scotland. Finally, the 327-room Hilton Durban in South Africa sold for approximately $32.5 million.