Orlando-based Xenia Hotels & Resorts has announced the sale of hotel properties in Houston, Denver, Chicago and St. Louis for a combined price of $119 million.
ORLANDO, Florida--Dec. 16, 2016-- Xenia Hotels & Resorts, Inc. (NYSE: XHR) ("Xenia" or the "Company") today announced that it has sold the 162-room Homewood Suites by Hilton Houston Near the Galleria, the 148-room Hampton Inn & Suites Denver Downtown, the 178-room Hilton Garden Inn Chicago North Shore / Evanston, and the 195-room Hilton St. Louis Downtown for a combined sale price of approximately $119 million. The total price represents an 11.0x multiple on the hotels' combined 2016 projected EBITDA. In addition to the sale price, the Company retained approximately $1.5 million in capital reserve funds related to the properties.
"We are pleased with the dispositions of these non-core assets, as well as the pricing we were able to achieve," said Marcel Verbaas, President and Chief Executive Officer of Xenia. "While we remain bullish on the long-term prospects of our remaining higher-quality hotels in Houston, Denver and Chicago, the sale of these select service assets allowed us to reduce our overall exposure in these markets. In addition, we exited the St. Louismarket. The continued enhancement of our portfolio is exemplified by the fact that these four hotels were projected to achieve a combined RevPAR of approximately $115 and EBITDA per key of approximately $16,000in 2016, with both measures significantly lagging the remainder of our portfolio."
Proceeds from the sale will be utilized for general corporate purposes which may include debt repayments, potential acquisitions consistent with the Company's long-term strategy, and share repurchases under the Company's existing authorization.
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