Xenia Hotels & Resorts Acquires 185-Room Fairmont Pittsburgh for $30 Million or $162K Per Key
Xenia Hotels & Resorts, Inc. (NYSE: XHR) ("Xenia" or the "Company") has announced it has acquired Fairmont Pittsburgh, a 185-room luxury hotel located in Pittsburgh, Pennsylvania for a purchase price of $30 million, or approximately $162,000 per key. The acquisition was funded with cash available on the Company's balance sheet. The purchase price represents an estimated 11.0x multiple on 2018 forecasted Hotel EBITDA. Xenia currently forecasts that the hotel will generate approximately $0.9 million of Hotel EBITDA during the remainder of 2018.
"We are excited to acquire Fairmont Pittsburgh, the leading luxury hotel and RevPAR market leader in Pittsburgh, a market that has become one of the most dynamic regional economies in the country," said Marcel Verbaas, Chairman and Chief Executive Officer of Xenia. "The acquisition of this unique asset, at a price per key significantly below replacement cost and an attractive EBITDA multiple, will contribute to the ongoing enhancement of the quality of our portfolio and further diversify our portfolio location and asset mix. While the hotel is in good physical condition, we believe we will be able to drive earnings growth as we integrate the hotel into our platform and further enhance the property's position as the premier luxury hotel in the market."
Fairmont Pittsburgh features 185 spacious rooms, 12,000 square feet of meeting space, a 6,000 square foot health club and spa, and a newly renovated bar and restaurant, "fl. 2". Built in 2010, the LEED Gold Certified Property has consistently been ranked as the best hotel in Pittsburgh by US News and World Report.
The hotel is strategically located in the center of Downtown Pittsburgh, in close proximity to five Fortune 500 company headquarters, 23 million square feet of Class A office space, three venues home to Pittsburgh's professional football, baseball, and hockey teams, and internationally renowned museums and theaters. The hotel is part of Three PNC Plaza, a mixed-use building which contains four separate and complimentary uses, including a 330-space below-ground parking garage, a 305,000 square foot office component, 28 residential condominiums, and Fairmont Pittsburgh.
The hotel's strong operating performance will be accretive to the overall Xenia portfolio, with RevPAR of $194.72 during the trailing 12 months ending July 31, 2018. Fairmont Pittsburgh becomes the 40thhotel in Xenia's high-quality portfolio of luxury and upper upscale hotels and the Company's second Fairmont hotel.
Fairmont Hotels & Resorts has more than 70 hotels globally, with several more in development. It is owned by AccorHotels, a world-leading travel and lifestyle group offering unique experiences in more than 4,300 hotels, resorts and residences around the globe.
Marriott International, Inc. (NASDAQ: MAR) is a global leading lodging company based in Bethesda,Maryland, USA, with more than 4,200 properties in 80 countries and territories. Marriott International reported revenues of nearly $14 billion in fiscal year 2014. The company operates and franchises hotels and licenses vacation ownership resorts under 19 brands, including: The Ritz-Carlton®, BVlgari®, EDITION®, JW Marriott®, Autograph Collection® Hotels, Renaissance® Hotels, Marriott Hotels®, Delta Hotels and Resorts®, Marriott Executive Apartments®, Marriott Vacation Club®, Gaylord Hotels®, AC Hotels by Marriott®, Courtyard®, Residence Inn®, SpringHill Suites®, Fairfield Inn & Suites®, TownePlace Suites®, Protea Hotels® and MoxyHotels®. Marriott has been consistently recognized as a top employer and for its superior business ethics. The company also manages the award-winning guest loyalty program, Marriott Rewards® and The Ritz-Carlton Rewards® program, which together surpass 50 million members. For more information or reservations, please visit our website at 
