Aug 11, 2022
Park Hotels Explores Sale of Caribe Hilton in Puerto Rico
(Bloomberg) -- Park Hotels & Resorts Inc. is exploring a sale of the Caribe Hilton in San Juan, Puerto Rico, according to a person with knowledge of the matter.
The real estate investment trust is seeking more than $200 million for the property, said the person, who asked not to be identified discussing private talks. Potential buyers include real estate-focused private equity firms. Ian Weissman, a spokesman for Tysons, Virginia-based Park Hotels, declined to comment.
The company, led by Chief Executive Officer Thomas Baltimore, said last week that it has sold interests in five non-core hotels for about $268 million this year. Shares of the REIT have slid about 17% in the past 12 months, giving it a market capitalization of roughly $3.6 billion.
A sale of the Caribe Hilton would follow a slew of investments in Puerto Rico hotels. In June, LionGrove announced the acquisition of Wyndham Grand Rio Mar Puerto Rico Golf & Beach Resort. Earlier this year, Braemar Hotels & Resorts Inc. purchased Dorado Beach, a 96-room Ritz-Carlton Reserve property in Dorado, for about $193 million.
Caribe Hilton, which opened in 1949 and has since been expanded to 652 rooms, was the first Hilton outside of the continental US. In 1954, Caribe Hilton bartender Ramon “Monchito” Marrero mixed rum, coconut cream and pineapple juice into a new cocktail, creating the pina colada, according to the hotel’s website, though earlier versions of the beverage have also been reported. The pina colada is now the official drink of Puerto Rico.
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