21ьз╕ C

Xenia Hotels & Resorts Completes Sale of Fairmont Dallas

News Provided by PR Newswire2025-04-11

Xenia Hotels & Resorts Completes Sale of Fairmont Dallas

[11-April-2025]

ORLANDO, Fla., April 11, 2025 /PRNewswire/ -- Xenia Hotels & Resorts, Inc. (NYSE: XHR) ("Xenia" or the "Company") today announced that it has sold the 545-room Fairmont Dallas for $111 million, or approximately $203,670 per key. The transaction price represents an 8.6x multiple and a 10.0% capitalization rate on the property's Hotel EBITDA and Net Operating Income for the twelve months ended February 28, 2025, respectively. These transaction price metrics are exclusive of an estimated $80 million of near-term capital expenditures. The Company expected Fairmont Dallas would have earned approximately $8 million of Hotel EBITDA for the remainder of 2025.

"We are pleased to have completed the sale of Fairmont Dallas, which opened in 1969 and which we acquired in 2011 for $69 million," said Marcel Verbaas, Chair and Chief Executive Officer of Xenia. "The unlevered IRR during our ownership period is 11.3%, which is an excellent outcome for this investment, particularly given the pandemic's significant negative impact on cash flows during 2020 and 2021. The disposition reflects our ongoing focus on upgrading the quality of the portfolio, prudent capital allocation, and maintaining balance sheet strength and flexibility. Because of the property's significant and disruptive near-term capital needs as well as the expected impact on the market from the upcoming redevelopment of the Dallas Convention Center, we believe that this sale and the avoidance of the significant additional capital investment is a superior outcome for the Company relative to continued ownership and re-investment. Additionally, the transaction has increased the overall quality of our portfolio, as Fairmont Dallas' historical RevPAR and EBITDA/key trailed meaningfully below our portfolio averages."

Net proceeds from the sale will be utilized for general corporate purposes, which may include debt repayments, potential acquisitions consistent with the Company's strategy, and/or share repurchases under the Company's existing authorization.

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 30 hotels comprising 8,868 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