Xenia Hotels & Resorts, Inc. has executed an agreement to sell a seven-hotel portfolio with a total of 1,124 guest rooms for $483 million. The portfolio consists of seven Kimpton-managed hotels, including Hotel Monaco Denver, Canary Hotel Santa Barbara, Hotel Monaco Chicago, Hotel Monaco Salt Lake City, Hotel Palomar Philadelphia, Lorien Hotel & Spa in Alexandria, Virginia, and RiverPlace Hotel in Portland, Oregon.
The closing is subject to the satisfaction of certain customary closing conditions and is expected to occur by early May. The buyer can extend the closing date to early June with the payment of an additional deposit. In 2019, this seven-hotel portfolio contributed approximately $30 million to the company’s Adjusted EBITDAre. For the seven months from June to December 2019, the portfolio contributed approximately $21 million to the company’s Adjusted EBITDAre.
“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 chief executive officer 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. The sale of these assets at an appealing valuation will further strengthen our balance sheet and position the company to drive enhanced growth in the years ahead.”
During the fourth quarter and year ended December 31, 2019, the Xenia invested $30 million and $93 million in its portfolio, respectively. The Kimpton Hotel Monaco Denver underwent a lobby renovation. The design pairs Western influences with Denver’s bustling city charm and is the final step in the hotel’s complete renovation. In 2011, the hotel’s 189 guestrooms were redesigned and in 2010, its award-winning restaurant, Panzano, was remodeled.
Photo courtesy Hotel Monaco Denver
