Xenia Hotels & Resorts Completes Sale of Fairmont Dallas
Xenia Hotels & Resorts (NYSE: XHR) has announced the sale of the 545-room Fairmont Dallas for $111 million, or approximately $203,670 per key. The sale price represents an 8.6x multiple on Hotel EBITDA and a 10.0% capitalization rate on Net Operating Income for the twelve months ended February 28, 2025.
The property, originally acquired in 2011 for $69 million, delivered an unlevered IRR of 11.3% during Xenia's ownership period, despite pandemic impacts in 2020-2021. The sale helps Xenia avoid an estimated $80 million in near-term capital expenditures and aligns with their strategy of portfolio quality improvement, as Fairmont Dallas historically underperformed compared to portfolio averages in RevPAR and EBITDA/key.
The property was expected to generate approximately $8 million in Hotel EBITDA for the remainder of 2025. Net proceeds will be used for general corporate purposes, including potential debt repayments, acquisitions, and share repurchases.
Xenia Hotels & Resorts (NYSE: XHR) ha annunciato la vendita del Fairmont Dallas con 545 camere per 111 milioni di dollari, ovvero circa 203.670 dollari per chiave. Il prezzo di vendita rappresenta un multiplo di 8,6 volte l'EBITDA dell'hotel e un tasso di capitalizzazione del 10,0% sul reddito operativo netto per i dodici mesi terminati il 28 febbraio 2025.
La proprietà, acquisita originariamente nel 2011 per 69 milioni di dollari, ha fornito un IRR non levereggiato dell'11,3% durante il periodo di proprietà di Xenia, nonostante gli impatti della pandemia nel 2020-2021. La vendita aiuta Xenia a evitare un costo stimato di 80 milioni di dollari in spese di capitale a breve termine e si allinea con la loro strategia di miglioramento della qualità del portafoglio, poiché il Fairmont Dallas ha storicamente sottoperformato rispetto alle medie del portafoglio in termini di RevPAR e EBITDA/chiave.
Si prevedeva che la proprietà generasse circa 8 milioni di dollari in EBITDA per hotel per il resto del 2025. I proventi netti saranno utilizzati per scopi aziendali generali, inclusi potenziali rimborsi di debito, acquisizioni e riacquisti di azioni.
Xenia Hotels & Resorts (NYSE: XHR) ha anunciado la venta del Fairmont Dallas de 545 habitaciones por 111 millones de dólares, o aproximadamente 203,670 dólares por llave. El precio de venta representa un múltiplo de 8.6 veces el EBITDA del hotel y una tasa de capitalización del 10.0% sobre el ingreso operativo neto para los doce meses que terminaron el 28 de febrero de 2025.
La propiedad, adquirida originalmente en 2011 por 69 millones de dólares, entregó un IRR no apalancado del 11.3% durante el período de propiedad de Xenia, a pesar de los impactos de la pandemia en 2020-2021. La venta ayuda a Xenia a evitar un costo estimado de 80 millones de dólares en gastos de capital a corto plazo y se alinea con su estrategia de mejora de la calidad de la cartera, ya que el Fairmont Dallas históricamente ha tenido un rendimiento inferior en comparación con los promedios de la cartera en RevPAR y EBITDA/llave.
Se esperaba que la propiedad generara aproximadamente 8 millones de dólares en EBITDA hotelero para el resto de 2025. Los ingresos netos se utilizarán para fines corporativos generales, incluidos posibles reembolsos de deuda, adquisiciones y recompra de acciones.
Xenia Hotels & Resorts (NYSE: XHR)는 545개의 객실을 보유한 Fairmont Dallas를 1억 1,100만 달러에 판매한다고 발표했습니다. 이는 약 203,670 달러 per 키에 해당합니다. 판매 가격은 호텔 EBITDA의 8.6배와 2025년 2월 28일 종료된 12개월 동안의 순 운영 소득에 대한 10.0% 자본화율을 나타냅니다.
이 부동산은 2011년에 6,900만 달러에 인수되었으며, Xenia의 소유 기간 동안 팬데믹 영향에도 불구하고 11.3%의 무차입 IRR을 기록했습니다. 이번 판매는 Xenia가 예상되는 8,000만 달러의 단기 자본 지출을 피하는 데 도움이 되며, Fairmont Dallas가 RevPAR 및 EBITDA/키 측면에서 포트폴리오 평균에 비해 역사적으로 저조한 성과를 보였기 때문에 포트폴리오 품질 개선 전략과 일치합니다.
이 부동산은 2025년 남은 기간 동안 약 800만 달러의 호텔 EBITDA를 생성할 것으로 예상되었습니다. 순수익은 일반 기업 목적, 잠재적인 부채 상환, 인수 및 자사주 매입 등을 위해 사용될 것입니다.
Xenia Hotels & Resorts (NYSE: XHR) a annoncé la vente du Fairmont Dallas de 545 chambres pour 111 millions de dollars, soit environ 203 670 dollars par clé. Le prix de vente représente un multiple de 8,6 fois l'EBITDA de l'hôtel et un taux de capitalisation de 10,0 % sur le revenu net d'exploitation pour les douze mois se terminant le 28 février 2025.
La propriété, acquise à l'origine en 2011 pour 69 millions de dollars, a généré un IRR non endetté de 11,3 % pendant la période de propriété de Xenia, malgré les impacts de la pandémie en 2020-2021. La vente aide Xenia à éviter des 80 millions de dollars de dépenses en capital à court terme et s'aligne avec leur stratégie d'amélioration de la qualité du portefeuille, car le Fairmont Dallas a historiquement sous-performé par rapport aux moyennes du portefeuille en RevPAR et EBITDA/clé.
On s'attendait à ce que la propriété génère environ 8 millions de dollars d'EBITDA hôtelier pour le reste de 2025. Les produits nets seront utilisés à des fins générales de l'entreprise, y compris le remboursement potentiel de dettes, des acquisitions et des rachats d'actions.
Xenia Hotels & Resorts (NYSE: XHR) hat den Verkauf des Fairmont Dallas mit 545 Zimmern für 111 Millionen Dollar angekündigt, was etwa 203.670 Dollar pro Schlüssel entspricht. Der Verkaufspreis stellt ein Multiplikator von 8,6x auf das Hotel-EBITDA dar und eine Kapitalisierungsrate von 10,0% auf das Nettobetriebseinkommen für die zwölf Monate bis zum 28. Februar 2025.
Die Immobilie wurde ursprünglich 2011 für 69 Millionen Dollar erworben und erzielte während der Besitzzeit von Xenia eine unverschuldete IRR von 11,3%, trotz der Auswirkungen der Pandemie in 2020-2021. Der Verkauf hilft Xenia, geschätzte 80 Millionen Dollar an kurzfristigen Investitionsausgaben zu vermeiden und steht im Einklang mit ihrer Strategie zur Verbesserung der Portfolioqualität, da das Fairmont Dallas historisch gesehen im Vergleich zu den Durchschnittswerten des Portfolios in RevPAR und EBITDA/pro Schlüssel unterdurchschnittlich abgeschnitten hat.
Es wurde erwartet, dass die Immobilie für den Rest des Jahres 2025 etwa 8 Millionen Dollar an Hotel-EBITDA generiert. Die Nettoerlöse werden für allgemeine Unternehmenszwecke verwendet, einschließlich möglicher Schuldenrückzahlungen, Akquisitionen und Aktienrückkäufe.
- Sale price of $111 million represents a 61% gain over 2011 purchase price of $69 million
- Transaction achieved 11.3% unlevered IRR despite pandemic impacts
- Sale helps avoid $80 million in required near-term capital expenditures
- 8.6x EBITDA multiple and 10.0% cap rate indicate favorable valuation
- Disposal of underperforming asset improves overall portfolio quality metrics
- Loss of approximately $8 million in expected Hotel EBITDA for remainder of 2025
- Property's RevPAR and EBITDA/key were below portfolio averages
- Upcoming Dallas Convention Center redevelopment could negatively impact market performance
Insights
Xenia Hotels & Resorts' $111 million sale of the Fairmont Dallas represents a strategically sound transaction that strengthens the REIT's financial position and portfolio quality. At $203,670 per key, the deal reflects an 8.6x EBITDA multiple and 10.0% capitalization rate—solid metrics that become even more favorable when considering the $80 million in near-term capital expenditures now avoided.
The transaction delivers excellent returns on XHR's original $69 million investment made in 2011, generating an 11.3% unlevered IRR over the 14-year holding period despite significant pandemic disruption. This performance demonstrates management's operational effectiveness while recognizing the optimal exit timing before deploying substantial additional capital.
This divestiture reflects prudent capital allocation for three key reasons: First, it eliminates exposure to potential market disruption from the upcoming Dallas Convention Center redevelopment. Second, it removes an underperforming asset that trailed portfolio averages in RevPAR and EBITDA per key. Third, while forgoing $8 million in Hotel EBITDA for the remainder of 2025, the transaction significantly improves the company's investment opportunity set.
The proceeds provide valuable financial flexibility in the current environment, enabling XHR to reduce debt, pursue higher-quality acquisitions, or enhance shareholder returns through its repurchase program. This transaction aligns perfectly with management's stated strategy of upgrading portfolio quality while maintaining balance sheet strength.
"We are pleased to have completed the sale of Fairmont Dallas, which opened in 1969 and which we acquired in 2011 for
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
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
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