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Park Hotels Announces $80M Sale of Hyatt Centric Fisherman's Wharf

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Park Hotels & Resorts, Inc. (PK - Free Report) announced that it has concluded the sale of the 316-room Hyatt Centric Fisherman’s Wharf located in San Francisco for $80 million.

The sale price reflects a multiple of 64.0 times the hotel’s 2024 EBITDA. Proceeds from this transaction will be utilized for ongoing return on investment (ROI) projects in Park’s portfolio and for other general corporate purposes.

Although the transaction market presents challenges, Thomas J. Baltimore, Jr., chairman and CEO of Park Hotels’ expresses satisfaction regarding the advancement made in reaching its strategic goal of disposing of $300 million to $400 million of non-core hotel assets in 2025. This initiative demonstrates its ongoing dedication to enhancing the overall quality of its iconic portfolio as it persistently reinvests into its strong ROI pipeline, while also improving its liquidity position and financial flexibility.

Since 2017, Park Hotels has sold or disposed of 46 hotels for more than $3 billion, thereby transforming its portfolio and strengthening its long-term growth. The company remains highly focused on allocating capital to unlock the embedded value in its portfolio and enhance shareholder returns.

This lodging real estate investment trust’s (REIT) strategic capital-deployment efforts highlight its prudent capital management practices and bode well for long-term growth. The company is focused on capitalizing on development activities and aims to optimize the use of its dispositions’ proceeds.

Over the past three months, shares of this Zacks Rank #3 (Hold) company have lost 17.3% compared with the industry's decline of 2.5%.

 

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Stocks to Consider

Some better-ranked stocks from the broader REIT sector are CareTrust REIT (CTRE - Free Report) and Uniti Group (UNIT - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for CTRE’s 2025 FFO per share is pinned at $1.79, which suggests year-over-year growth of 19.3%.

The Zacks Consensus Estimate for UNIT’s 2025 FFO per share stands at $1.50, which indicates an increase of 11.1% from the year-ago period.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.


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