TYSONS, Va.--(BUSINESS WIRE)--Park Hotels & Resorts Inc. (NYSE:PK) today announced that it has closed on the two separate sales of the 197-room Embassy Suites by Hilton Washington DC Georgetown and the 503-room Hilton São Paulo Morumbi for combined gross proceeds of approximately $208 million before customary closing costs and adjustments.

The Embassy Suites DC, located in Washington, D.C., was sold for gross proceeds of $90.4 million, or $459,000 per key before customary closing costs and adjustments. When adjusted for Park’s anticipated capital expenditures (“capex”), the sale price represents a 5.9% capitalization rate on the Hotel’s 2019 net operating income (6.3% excluding capex), or 14.8x the Hotel’s 2019 EBITDA (13.8x excluding capex).

The Hilton São Paulo, located in São Paulo, Brazil, was sold for gross proceeds of $117.5 million, or $234,000 per key before customary closing costs and adjustments. When adjusted for Park’s anticipated capital expenditures, the sale price represents a 5.8% capitalization rate on the Hotel’s 2019 net operating income (6.6% excluding capex), or 14.9x the Hotel’s 2019 EBITDA (13.1x excluding capex).

“We are excited to announce the sale of two non-core assets that advance our strategic objectives at very attractive pricing,” commented Thomas J. Baltimore, Jr., Chairman and Chief Executive Officer of Park. “The sale of the Hilton São Paulo marks our official exit from international markets, and we have now sold or disposed of 24 assets for over $1.2 billion since our spin-off from Hilton, including 14 international assets. In addition, since closing the Chesapeake acquisition in September 2019, we have sold a total of five non-core hotels for gross proceeds of nearly $470 million, executing on our stated strategy of reducing net leverage closer to our targeted goal of low 4x net-debt-to-EBITDA. I am very proud of our capital recycling efforts and the progress we have made toward our portfolio transformation.”

About Park Hotels & Resorts

Park Hotels & Resorts Inc. (NYSE: PK) is the second largest publicly traded lodging real estate investment trust with a diverse portfolio of market-leading hotels and resorts with significant underlying real estate value. Park’s portfolio currently consists of 60 premium-branded hotels and resorts with over 33,000 rooms located in prime U.S. markets with high barriers to entry. For additional information, please visit Park's website at www.pkhotelsandresorts.com.