Monday, August 3, 2015

Xenia Drops $245M on Hotel Trio Including Rittenhouse Philadelphia

by Jennifer LeClaire,

Xenia Hotels just snapped up $245 million worth of hotels. The firm acquired fee simple interests in three high-quality lifestyle boutique hotels. The company funded the acquisitions with cash and its line of credit.

The 84-room RiverPlace Hotel is located in Downtown Portland right next to the Tom McCall Waterfront Park. The 97-room Canary Hotel is located in Downtown Santa Barbara, CA. And the 230-room Hotel Palomar is in Downtown Philadelphia's Center City District near Rittenhouse Square.

"We are thrilled to have acquired the RiverPlace Hotel, the Canary Hotel and the Hotel Palomar, three luxury lifestyle boutique hotels located in high barrier to entry markets with diverse demand generators," says Marcel Verbaas, president and CEO of Xenia. "The acquisition of these distinctive hotels further exemplifies our strategy of continually enhancing our portfolio by investing in high-quality assets in major lodging markets and key leisure destinations."

The three hotels have posted consistently strong operating results. The hotel portfolio's average RevPAR of $224.59, comprised of average occupancy of 85.4%--and an average daily rate of $262.93—from June 2014 to June 2015. The hotel portfolio has generated RevPAR growth of 10.1% year to date.

Xenia forecasts that the hotels will generate EBITDA of $7 to $8 million for the remainder of 2015 and $18.5 to $20.5 million in 2016. All three lifestyle hotels will continue to be managed by Kimpton Hotels & Restaurants.

“Kimpton's exemplary results have established the company as a leading choice for the management of high-quality boutique properties such as these three hotels,” says Verbaas. “Our relationship with Kimpton gives us confidence that we will be able to achieve continued positive results and growth during our ownership of these hotels."

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