Park Hotels & Resorts has closed on the sale of the 182-room Ace Hotel Downtown Los Angeles for $117 million, or $643,000 per key before customary closing costs.
Proceeds from the sale of the hotel will be used to repay a portion of Park’s unsecured indebtedness in order to delever the firm’s balance sheet.
“We are very pleased to announce the successful execution of our 20th noncore asset sale, which helps deliver on our stated objective of reducing leverage following our recent acquisition of Chesapeake Lodging Trust,” commented Thomas J. Baltimore Jr., chairman and CEO of Park. “We have now sold approximately $1 billion in assets since our formation less than three years ago, taking advantage of strong buyer interest and our deep relationships with the investment community in order to achieve our strategic goals. We remain confident in our ability to deliver on our near-term objectives of upgrading the quality of the portfolio while also maintaining a
