DC, Sao Paulo Hospitality Assets Trade for $208M

Embassy Suites by Hilton Washington DC Georgetown. Image via Google Street View

Park Hotels & Resorts has finalized the disposition of two of its assets for a gross sale price of $207.9 million. The company sold the 197-key Embassy Suites by Hilton Washington DC Georgetown and the 503-key Hilton Sao Paulo Morumbi. 

The Embassy Suites DC is located at 1250 22nd St. NW in Georgetown. The property sold for $90.4 million, or nearly $459,000 per key. EOS Investors bought the hotel and financed the acquisition with a $62.9 million loan from Citibank, public records show. When adjusted for the seller’s projected capital expenditures, the sale price constitutes a 5.9 percent cap rate on the asset’s 2019 net operating income. 

The Hilton Sao Paulo Morumbi is situated at 12901 United Nations Avenue in Sao Paulo. Park Hotels sold the asset for $117.5 million, or nearly $234,000 per key. A partnership between Hemisferio Sul Investimentos and GIC Realty acquired the asset, according to Valor Economico. The joint venture financed the purchase with a five-year, $34.1 million mortgage from Itau BBA. The sale price represents a 5.8 percent cap rate on the property’s net operating income from last year. 

The disposition of the Sao Paulo hotel represents the company’s official exit from international markets, according to Thomas Baltimore Jr., chairman & CEO of Park Hotels. Since finalizing the acquisition of Chesapeake Lodging Trust, the company has sold five non-core assets for a gross sale price of $470 million.