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Hotel REIT Spins Off Dallas Hotel for $111M
Xenia Hotels & Resorts, Inc. 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.
“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 Xenia’s Marcel Verbaas. “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.”
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.
Xenia owns the Marriott Dallas Downtown. The company also owns 30 upper-upscale and luxury hotels, comprising 8,868 rooms across 14 states.
- ◦Sale/Acquisition
