Lodging REIT Park Hotels & Resorts has closed on the sale of the 152-room Hilton Nuremberg in Germany for $17.5 million ($115,000 per key). The buyer was not disclosed.
When adjusted for Park’s anticipated capital expenditures of $10.1 million for the property, the sale price represents a 3.5-percent capitalization rate on the hotel’s 2018 net operating income (5.6 percent, excluding capital expenditures).
The REIT has now sold 15 non-core assets for nearly $590 million over the past 18 months. Nearly a year ago, the trust sold the 601-room Hilton Berlin for approximately $350 million.
Proceeds from the latest sale will be used for general business purposes, which may include funding future capital projects.
According to Park's Chairman/CEO Tom Baltimore Jr., the transaction reduces the REIT's international exposure to three hotels, accounting for approximately 1 percent of hotel adjusted EBITDA.
"The sale also further improves the overall quality of our portfolio, as the hotel’s 2018 RevPAR was $105, or 40 percent below our portfolio average. We remain laser-focused on reshaping our portfolio and maximizing value for our stockholders and anticipate executing on additional asset sales in the future," said Baltimore.
Park’s portfolio consists of 51 branded hotels and resorts with more than 30,000 rooms in the United States.