Xenia Hotels & Resorts offloads seven high-end hotels for $483m

Kimpton Canary Hotel Santa Barbara

Xenia Hotels & Resorts has executed an agreement to sell a seven-hotel portfolio with a total of 1,124 guest rooms for $483m.

The portfolio consists of seven Kimpton-managed hotels, including Canary Hotel Santa Barbara, Hotel Monaco Chicago, Hotel Monaco Denver, Hotel Monaco Salt Lake City, Hotel Palomar Philadelphia, Lorien Hotel & Spa in Alexandria, Virginia, and RiverPlace Hotel in Portland, Oregon.

The agreed-upon sale price represents a 16.1x multiple and a 5.3% capitalization rate on the hotels’ combined 2019 Hotel EBITDA and net operating income, respectively. 

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“We are pleased to have reached an agreement to sell this portfolio at attractive pricing, both generally and relative to our current trading multiple,” said Marcel Verbaas, chairman and CEO of Xenia.

“If completed as anticipated, this sale will represent our largest transaction since our listing in early 2015. While these hotels are high-quality assets that are largely consistent with our long-term investment strategy, we believe that this disposition is an illustration of our ability to opportunistically unlock value within our current portfolio and increase shareholder value through portfolio recycling.”

Xenia Hotels & Resorts is a self-advised and self-administered REIT that invests primarily in uniquely positioned luxury and upper upscale hotels and resorts, with a focus on the top 25 US lodging markets as well as key leisure destinations in the US.

The Company owns 39 hotels comprising 11,245 rooms across 16 states. Xenia’s hotels are primarily in the luxury and upper upscale segments.

Tags : acquisitionshotelsXenia Hotels
Andrew Seymour

The author Andrew Seymour

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