Park Hotels Sells D.C. Embassy Suites For $90M
Park Hotels & Resorts has unloaded two more hotels following its acquisition of Chesapeake Lodging Trust, including one in D.C.
The Tysons-based REIT announced Wednesday it sold the Embassy Suites by Hilton Washington D.C. Georgetown for $90.4M and the Hilton São Paulo Morumbi in Brazil for $117.5M.
The West End hotel sold to an affiliate of New York-based EOS Investors, according to documents filed Wednesday to the D.C. Recorder of Deeds. The buyer received a $62.9M acquisition loan from Citibank, deed records show.
The sale of the 197-room hotel equated to $459K/room and represented a capitalization rate of 5.9%, Park Hotels said. The hotel at 1250 22nd St. NW includes amenities such as a business center, meeting rooms, a pool, a fitness room and a video arcade.
The 503-room Brazil hotel sold at a 5.8% capitalization rate, Park Hotels said. The sale marks the REIT's exit from international markets, Park Hotels CEO Thomas Baltimore said in a release.
"We are very proud to announce the sale of two non-core assets that advance our strategic objectives at very attractive pricing," Baltimore said. "I am very proud of our capital recycling efforts and the progress we have made toward our portfolio transformation."
With the sales, Park Hotels has now unloaded five hotels since its $2.5B acquisition of Chesapeake Lodging Trust closed in September. The REIT in November sold the Conrad Dublin, and in December it sold the Ace Hotel Downtown Los Angeles and the Le Meridien New Orleans. Park Hotels also sold three hotels in Atlanta, New Orleans and Parsippany, New Jersey, in June.
