Xenia Hotels & Resorts Inc. has completed its recently revealed 5-hotel, 812-guestroom portfolio sale to an affiliate of Summit Hotel Properties for a total purchase price of $163 million, or approximately $201,000 per key.
The portfolio includes the 203-guestroom Courtyard Fort Worth Downtown/Blackstone, the 123-guestroom Courtyard Kansas City Country Club Plaza, the 182-guestroom Courtyard Pittsburgh Downtown, the 116-guestroom Hampton Inn & Suites Baltimore Inner Harbor, and the 188-guestroom Residence Inn Baltimore Downtown/Inner Harbor. The agreement to sell the portfolio was previously announced on June 5, 2017.
Proceeds from the sale will be utilized for general corporate purposes which may include debt repayments, share repurchases under the Company’s repurchase authorization, and potential acquisitions consistent with the Company’s long-term strategy of investing in high-quality assets primarily located in top 25 U.S. lodging markets and key leisure destinations.
Xenia Hotels & Resorts, Inc. is a self-advised and self-administered REIT that invests primarily in premium full service and lifestyle hotels, with a focus on the top 25 U.S. lodging markets as well as key leisure destinations in the US. The company owns 37 hotels, including 35 wholly owned hotels, comprising 10,783 rooms, across 18 states and the District of Columbia.
The Reit Wire first revealed details about this sale earlier this month. “We strongly believe this to be a mutually beneficial strategic transaction,” said Marcel Verbaas, president and Chief Executive Officer of Xenia. “While these hotels fit well within Summit’s portfolio of quality, upscale hotels, the completion of this transaction and our recent acquisition of the Hyatt Regency Grand Cypress represent a further refinement of our portfolio, consistent with our strategic focus on primarily owning luxury and upper upscale assets in top 25 lodging markets and key leisure destinations.”
Xenia has been in the news a lot lately. As the REIT Wire also recently reported, Xenia just recently acquired the 815-key Hyatt Regency Grand Cypress in Orlando, FL, from an affiliate of Hyatt Hotels Corp. for a purchase price of $205.5 million, or approximately $252,000 per key. The acquisition was funded with cash available on the company’s balance sheet and its senior unsecured credit facility.