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Xenia Hotels to Sell Kimpton-Managed Loop Property for $36M
Florida-based lodging REIT Xenia Hotels & Resorts has reached an agreement to sell the 191-key Kimpton Hotel Monaco Chicago in the Loop for $36 million or approximately $188,500 per key. The buyer wasn’t disclosed.
If the sale goes through, it will mark Xenia’s exit from the Chicago market. The company said Chicago has been “challenged over the last decade due to multiple factors, such as outsized expense inflation and new hotel supply growth,” and it’s expected to have a longer cash flow recovery path compared to most other markets in the company’s geographic mix.
Xenia had previously reached an agreement last year to sell the Monaco Chicago and six other Kimpton-managed properties for $483 million, or about $430,000 per key. However, that deal, announced just before the pandemic set in, collapsed when the buyer backed out.
The company expects to impair the Monaco Chicago’s book value by approximately $15 million.
- ◦Sale/Acquisition
