DTLA’s Ace Hotel Trades Hands, Not Flag, for $117M

Park Hotels & Resorts (NYSE:PK) has reportedly sold Downtown Los Angeles’ 182-room Ace Hotel for $117 million, or $643,000 per key. For those in the industry looking at investment proforma’s at year end 2019, when adjusted for Park’s anticipated capital expenditures , the sale price represents a 5.4% capitalization rate on the hotel’s projected 2019 net operating income.

According to the announcement, proceeds from the sale of Ace DTLA will repay a portion of Park’s unsecured indebtedness in order to “deleverage” its balance sheet. “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,” said Thomas J. Baltimore, Jr., chairman and CEO of Park Hotels & Resorts.

Photo Credit: Ace Hotel DTLA

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