Park Hotels & Resorts and its joint venture partners have closed on the sale of their interests in the company that owns the 192-room Conrad Dublin in Ireland for gross proceeds of €116.4 million, before customary closing adjustments and debt repayment.
The gross proceeds equate to approximately $128 million, or $667,000 per room. Park’s pro rata share of gross proceeds was approximately $61 million. The sale price represents a 3.9 percent capitalization rate on the hotel’s projected 2019 net operating income, or 22.1 times the hotel’s projected 2019 earnings before interest, tax, depreciation and amortization.
“We are excited to announce the execution of this noncore asset sale at very attractive pricing, which reduces our international exposure as well as our ownership in joint venture interests,” said Thomas J. Baltimore, Jr., chairman/CEO of Park. “I am incredibly proud of our team’s capital recycling efforts over the past two years, which include selling 19 noncore assets for approximately $815 million and acquiring 18 high-quality assets in the recently completed $2.5 billion acquisition of Chesapeake Lodging Trust. The sale of the Conrad Dublin marks the beginning of a series of asset sales being executed to reduce leverage in the near term, delivering on our stated objective.”
In March, the company sold the 152-room Hilton Nuremberg in Germany for $17.5 million.