Pair of Arizona Resorts Acquired for $305M
Xenia Hotels & Resorts, Inc. acquired two hotels in Arizona from affiliates of Hyatt Hotels Corporation for a combined $305 million, or roughly $498,350 per key. The properties include the Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch, a 493-room resort located in Scottsdale, AZ, and Royal Palms Resort & Spa, a 119-room resort located in Phoenix that is part of The Unbound Collection by Hyatt.
Xenia’s Marcel Verbaas says, “While the hotels are in good physical condition and have strong in-place cash flows, we believe we will be able to drive further growth as we work with Hyatt to continue to optimize operations, reap the benefits of the recent branding of Royal Palms and make targeted capital improvements to further upgrade both properties.”
The acquisition was funded via cash available on the company’s balance sheet, a new $100-million mortgage loan, and a new $125-million senior unsecured term loan.
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