Xenia Hotels & Resorts Completes Disposition of Lorien Hotel & Spa

Rhea-AI Summary

Xenia Hotels & Resorts (NYSE: XHR) announced the sale of Lorien Hotel & Spa in Alexandria, VA for $30 million, equating to approximately $280,000 per room. The transaction reflects a 21.3x multiple and a 3.1% capitalization rate based on Hotel EBITDA and Net Operating Income over the last twelve months. The proceeds will be used for general corporate purposes such as share repurchases, debt repayment, capital expenditures, and acquisitions. Xenia owns 31 luxury and upper upscale hotels with 9,408 rooms across 14 states.

Positive

• Sale of Lorien Hotel & Spa for $30 million, enhancing liquidity.
• Proceeds may be used for share repurchases, debt repayment, capital expenditures, and acquisitions.
• Reflects a 21.3x multiple and 3.1% capitalization rate, indicating strong financial metrics.

Negative

• Sale reduces the number of hotels in Xenia’s portfolio.

News Market Reaction – XHR

+1.15%

+1.15% Session move

In the trading session that priced this news, XHR gained 1.15%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

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ORLANDO, Fla., July 9, 2024 /PRNewswire/ -- Xenia Hotels & Resorts, Inc. (NYSE: XHR) ("Xenia" or the "Company") today announced it has completed the disposition of the 107-room Lorien Hotel & Spa in Alexandria, VA, for $30 million, or approximately $280,000 per key. The sale price represents a 21.3x multiple and a 3.1% capitalization rate on Hotel EBITDA and Net Operating Income for the trailing twelve months ended May 31, 2024, respectively.

Proceeds will be utilized for general corporate purposes, which may include share repurchases, debt repayment, capital expenditures and acquisitions consistent with the Company's long-term strategy.

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 lodging markets as well as key leisure destinations in the United States. The Company owns 31 hotels comprising 9,408 rooms across 14 states. Xenia's hotels are in the luxury and upper upscale segments, and operated and/or licensed by industry leaders such as Marriott, Hyatt, Kimpton, Fairmont, Loews, Hilton, and The Kessler Collection. For more information on Xenia's business, refer to the Company website at www.xeniareit.com.

For additional information or to receive press releases via email, please visit our website at
www.xeniareit.com

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SOURCE Xenia Hotels & Resorts, Inc.

FAQ

What is the significance of Xenia's sale of Lorien Hotel & Spa?

Xenia sold Lorien Hotel & Spa for $30 million, which is expected to be used for share repurchases, debt repayment, capital expenditures, and acquisitions, aligning with the company's long-term strategy.

How much did Xenia sell Lorien Hotel & Spa for?

Xenia sold Lorien Hotel & Spa for $30 million, or approximately $280,000 per room.

What is the financial impact of Xenia's sale of Lorien Hotel & Spa?

The sale reflects a 21.3x multiple and a 3.1% capitalization rate based on the hotel's EBITDA and Net Operating Income, indicating strong financial performance.

What will Xenia do with the proceeds from the Lorien Hotel & Spa sale?

Xenia plans to use the proceeds for general corporate purposes, including share repurchases, debt repayment, capital expenditures, and acquisitions.

How does the sale of Lorien Hotel & Spa affect Xenia's portfolio?

The sale reduces the total number of hotels in Xenia's portfolio but provides significant liquidity for strategic investments.