REIT Sells Non-Core Hotels at 16x EBITDA
Hotel owners weighing hold-versus-sell decisions get a pricing benchmark from Park's latest disposals.
Updated on Nov. 5, 2026 in Hospitality
Park Hotels and Resorts sold two non-core hotels in the third quarter, the Hilton Short Hills in New Jersey and The Wade in Chicago, bringing its non-core disposals to 11 of 19 identified properties. The sales are part of a broader portfolio pruning that matters for hospitality owners weighing which assets to hold versus sell.
Why it matters
Park has been selling hotels to concentrate capital on its highest-earning properties and reduce exposure to lower-growth assets. The disposals show how a major lodging REIT is trading lower-growth properties for focus on flagship resorts at a time when revenue per available room is still rising.
Park's 11 non-core sales have produced $220 million in gross proceeds at an average of 16 times EBITDA, while the company has disposed of 56 properties for slightly more than $3 billion overall. The 314-room Hilton Short Hills sold for $12 million, the 520-room The Wade for roughly $19 million, and third-quarter RevPAR grew 8.4% year over year.
The players
Park Hotels and Resorts
A Tysons, Virginia-based hotel real estate investment trust spun off from Hilton in 2017 that owns and manages a portfolio of upscale and luxury hotels and resorts.
Hilton
A global hotel company whose franchising and management model made it the former parent of Park Hotels and Resorts.
The details
Park is selling hotels that fall outside its core portfolio, with the two third-quarter sales covering a 314-room property in New Jersey and a 520-room Chicago hotel formerly branded W Chicago - Lakeshore. The company expects the remaining eight non-core hotels, which together generate about $50 million in combined EBITDA, to be disposed of over time. Park also recently completed a 15-month, $100 million renovation of the Royal Palm South Beach Miami, which is projected to reach roughly $28 million of stabilized hotel-adjusted EBITDA by 2028.
Timeline
Early 2017: Park was spun off from Hilton.
2019: Park bought Chesapeake Lodging Trust a little more than two years after its spin-off.
Third quarter 2026: Park sold the Hilton Short Hills and The Wade.
Fourth quarter 2026: The Wade was slated to lose $1.3 million.
End of 2026: Park is expected to announce more sales.
Market Landscape
Park's sell-off follows its 2017 separation from Hilton and its 2019 acquisition of Chesapeake Lodging Trust, a sequence of portfolio moves aimed at concentrating on higher-earning assets. The disposals position the REIT to deploy capital toward flagship properties while lower-growth hotels leave the portfolio.
Owners and operators of mid-size and luxury hotels should watch how REIT portfolio pruning affects asset pricing, since Park's sales cleared at an average of 16 times EBITDA. Operators weighing lower-growth properties should factor that multiple benchmark into hold-versus-sell decisions, and consult qualified counsel or an accountant before acting on any transaction.
The takeaway
The big operating signal is that a major lodging REIT is trading lower-growth hotels for capital to reinvest in its best properties even as revenue per available room climbs. Operators should track the average sale multiple and the year-end disposition announcements as a read on how institutional buyers are pricing select-service and non-core hotel assets.
What happens next
Park is expected to announce more hotel sales around the end of 2026, with the non-core disposition program anticipated to be largely complete in the near future.
Further reading
For more on how lodging portfolios are being reshaped, explore the Hospitality coverage on We are Main Street.
Source note: This article includes information reported by CoStar.
