Residence Inn Denver City Center
DENVER—Orlando-based Xenia Hotels & Resorts continues to be very active in the sale and purchase of hotel properties nationwide with the disposition of the 228-room Residence Inn Denver City Center here for $92 million, or approximately $404,000 per key.
Xenia's predecessor Inland American Lodging Group, Inc., a wholly owned subsidiary of Inland American Real Estate Trust, Inc. acquired the 14-story Residence Inn by Marriott Denver City Center and adjoining 448-space parking garage for $80 million.in April 2013. The buyer of the property was not disclosed.
In February 2015, Inland American Real Estate Trust spun-off Xenia Hotels & Resorts, Inc.
Xenia reports the sale of the Residence Inn by Marriott Denver City Center represents a 12.8x multiple and a 7.1% capitalization rate on the hotel's trailing 12-month hotel EBITDA and net operating income as of Nov. 30, 2018, respectively. The company realized an unlevered IRR (internal rate of return) of 10.4% on the investment since acquiring the hotel more than five years ago.
“We are pleased to have completed the sale of Residence Inn Denver City Center at an attractive valuation,” says Marcel Verbaas, Xenia's chairman and CEO. “While we view Denver as a core market for the company, our recent acquisition of The Ritz-Carlton allowed us to further reduce our select-service holdings through the sale of this hotel. “
He adds that in addition to the Ritz Carlton, the company has also recently completed renovations to its Hotel Monaco in Denver.
Back in December 2016, Xenia sold the 148-room Hampton Inn & Suites Denver Downtown and three other hotel properties in the Chicago, Houston and St. Louis areas in a deal valued at $119 million.
Xenia Hotels & Resorts has been very active of late. In 2018 the company has acquired the Fairmont Pittsburgh, the Park Hyatt Aviara Resort, Golf Club & Spa, and the Waldorf Astoria Atlanta Buckhead, while selling the Aston Waikiki Beach Hotel, the Hilton Garden Inn Washington DC and now the Residence Inn Denver City Center.
“These portfolio changes have improved the average quality of our portfolio today and enhance the growth opportunities for the company, as it relates to both revenue and profitability, in the years ahead,” says Verbaas.
Xenia Hotels & Resorts, Inc. owns 40 hotels comprising 11,165 rooms, across 17 states. Xenia's hotels are primarily in the luxury and upper upscale segments, and operated and/or licensed by Marriott, Hyatt, Kimpton, Fairmont, Loews and Hilton, as well as independent management companies including The Kessler Collection, Sage Hospitality and Davidson Hotels & Resorts.
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John Jordan
John Jordan is a veteran journalist with 36 years of print and digital media experience.
