Hilton Garden Inn Washington DCWASHINGTON, DC–The Orlando, FL-based Xenia Hotels & Resorts has sold another Washington DC area-holding: the 300-room Hilton Garden Inn Washington DC Downtown for $128 million, or approximately $427,000 per key. The sale price represents a 15.2x multiple and a 5.8% capitalization rate on the hotel's trailing twelve month Hotel EBITDA and net operating income as of October 31, 2018, respectively, according to the REIT.
The sale is part of the REIT's larger strategy of pruning its portfolio to focus on luxury and upper upscale hotels in 25 top US lodging markets, says Marcel Verbaas, Xenia's Chairman and Chief Executive Officer.
Xenia has sold other properties in the DC area over the years. Two years ago it sold the 220-room DoubleTree by Hilton for $65 million and the Embassy Suites Hunt Valley, located in a Baltimore submarket, for $20 million.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
