Park Hotels & Resorts has entered into two separate, definitive contracts to sell two hotels in San Francisco — the 360-room Le Meridien San Francisco and the 171-room Hotel Adagio, Autograph Collection — for a total of $303.5 million.
Gross proceeds for the Le Meridien San Francisco are $221.5 million, or approximately $615,000 per key, and gross proceeds for the Hotel Adagio are $82 million, or approximately $480,000 per key.
Following the sale of both hotels, Park’s exposure to San Francisco will decrease by 210 basis points to 14.6 percent based on 2019 pro-forma Hotel Adjusted EBITDA. Net proceeds from the sales will be used to partially repay debt currently outstanding on its one remaining bank term loan. Pro forma for the repayments, the company expects to have approximately $80 million of corporate bank debt outstanding.
Once complete, the transactions will bring the total number of assets sold or disposed of since spinning off from Hilton in J
