Park Hotels Sells Phoenix Asset for $51M
- Feb 11, 2019
In its first publicly announced property trade of 2019, Park Hotels & Resorts Inc. sold Pointe Hilton Squaw Peak Resort in Phoenix. The 563-key hotel commanded $51.4 million.
The Squaw Peak transaction marks another move in Park’s capital recycling program, a strategy designed to increase the lodging REIT’s presence in target markets and decrease its exposure in slower growth areas.
With lodging accommodations consisting solely of suites and casitas, Squaw Peak opened in 1977 and underwent its most recent renovation in 2017, courtesy of an $8.5 million capital investment. The resort sits on a 27-acre site near the Phoenix Mountain Preserve and offers such amenities as the four-acre River Ranch Water Park, a spa and fitness center, restaurants and indoor/outdoor event space totaling 48,000 square feet.
Squaw Peak’s performance wasn’t precisely a good fit for Park. The hotel’s estimated RevPAR of $118 is roughly 30 percent below the REIT’s portfolio average.
Park’s sale of Squaw Peak follows a flurry of strategic dispositions in 2018. The company closed the year with gross proceeds of more than $500 million from the sale of 13 properties, including the 601-key Hotel Berlin in Germany, which sold for approximately $350 million.
Park plans to sell additional assets in 2019. “It’s trying to find the right buyer for the right situation. We want to make sure that we can maximize value for the shareholders,” Baltimore said during the company’s third-quarter 2018 earnings call on Nov. 2. “These are assets that don’t fit our long term, but we want to make sure, again, that we’re selling at the appropriate price.”
Images courtesy of Hilton