Xenia Hotels & Resorts, Inc., a self-advised and self-administered REIT, owns 39 hotels comprising 11,245 rooms across 16 states in the U.S announced that it has agreed to sell a seven-hotel portfolio with a total of 1,124 guest rooms to a joint venture between Australian iProsperity Group (iPG) and Singapore based Soilbuild Group Holdings Ltd for $483 million.
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,” said in a statement. The closing is expected to occur by early May.
“If completed as anticipated, this sale will represent our largest transaction since our listing in early 2015.”
“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 Hotels & Resorts. “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.”
