KHP Capital Partners agreed to acquire Le Meridien San Francisco from Park Hotels & Resorts Inc. (NYSE:PK) for approximately $220 million during June 2021. Total consideration for this transaction and one other transaction is $303.5 million. Gross proceeds for the Le Meridien San Francisco are $221.5 million, or approximately $615,000/key. Consideration will be payable in cash at closing, subject to customary pro rations and adjustments. In a related transaction, Park Hotels & Resorts agreed to sell 171-room Hotel Adagio, Autograph Collection. When adjusted for Park’s anticipated capex, the sale price equates to a 5.9% capitalization rate on 2019 net operating income (6.5% excluding capex), or 15.0x 2019 EBITDA (13.7x excluding capex). Following the sale of both hotels, Park’s exposure to San Francisco will decrease by 210 basis points to 14.6% based on 2019 pro-forma Hotel Adjusted EBITDA. Transaction is expected to close within the next 60 days. The sale is expected to close during the third quarter of 2021. Net proceeds from the sales will be used to partially repay debt currently outstanding on its one remaining bank term loan, a portion of the 2019 Term Facility. Pro forma for the repayments, Park Hotels 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 January 2017 to 29, with total gross proceeds of approximately $1.7 billion.