ORLANDO, Fla., Nov. 24, 2020 /PRNewswire/ — Xenia Hotels & Resorts, Inc. (NYSE: XHR) (“Xenia” or the “Company”) today announced it has completed the previously announced dispositions of the 245-room Hotel Commonwealth in Boston, Massachusetts for $113.0 million, or approximately $461,000 per key, and the 492-room Renaissance Austin Hotel in Austin, Texas for $70.0 million, or approximately $142,000 per key. In addition to the sale proceeds, the Company retained a total of $6.6 million in cash that was held in the properties’ FF&E reserves.
“We are pleased to have completed both of these transactions in an efficient manner,” commented Marcel Verbaas, Xenia’s Chairman and Chief Executive Officer. “Year to date, we have now sold four hotels for nearly $400 million. These dispositions have allowed us to efficiently raise a significant amount of capital at a superior cost to other alternatives. Additionally, we have successfully increased our balance sheet flexibility to help position the Company to be opportunistic as the recovery takes hold.”
The sale price for Hotel Commonwealth represented an 11.8x multiple on the hotel’s 2019 Hotel EBITDA, while the Renaissance Austin’s sale price represented a 6.8x multiple on its 2019 Hotel EBITDA. Including the dispositions of Residence Inn Boston Cambridge and Marriott Napa Valley Hotel & Spa, which were both completed in October, the combined sale prices of the four properties sold by the Company in 2020 represented an approximately 10x multiple on 2019 Hotel EBITDA.
“Our high-quality portfolio has afforded us the opportunity to create meaningful additional liquidity and balance sheet flexibility as the COVID-19 pandemic has profoundly impacted our Company and the lodging industry as a whole,” continued Mr. Verbaas. “The sale of Hotel Commonwealth at a highly attractive valuation, particularly given the current uncertain operating environment, is representative of the value embedded in our portfolio. Meanwhile, the sale price for Renaissance Austin reflects its dependence on corporate and group demand which have been severely affected by the pandemic, as well as the hotel’s substantial near-term capital needs and its location in a market where a significant number of higher-quality and better-located hotels have opened in recent years. Having completed the most recent renovations to the hotel’s guest rooms and the majority of its public and meeting space almost 8 years ago, we believe the sale of this non-strategic hotel, which achieved the second-lowest RevPAR in our portfolio in 2019, was the most prudent course of action at this time. With our recently completed dispositions and additional balance sheet activity, we believe we have taken the right steps during this pandemic to position the Company for future growth.”
Proceeds from the sales will be utilized to repay borrowings under the Company’s line of credit and for general corporate purposes.
About Xenia Hotels & Resorts, Inc.
Xenia Hotels & Resorts, Inc. is a self-advised and self-administered REIT that invests in uniquely positioned luxury and upper upscale hotels and resorts, with a focus on the top 25 U.S. lodging markets as well as key