Xenia Hotels & Resorts Sells Marriott Griffin Gate Resort & Spa and Marriott Chicago at Medical District/UIC
Xenia Hotels & Resorts, Inc. (NYSE: XHR) ("Xenia" or the "Company") today announced it has completed the sale of the 409-room Marriott Griffin Gate Resort & Spa in Lexington, Kentucky for $51.5 million. The sale price represents a 7.1x multiple on the resort's trailing twelve month Hotel EBITDA as of November 30, 2019. Inclusive of estimated required capital expenditures of approximately $30 million, the price reflects an 11.2x trailing twelve month Hotel EBITDA multiple. Additionally, the Company also announced that it has sold the 113-room Marriott Chicago at Medical District/UIC in Chicago, Illinois for $10.0 million. This pricing represents a 12.1x multiple on this hotel's trailing twelve month EBITDA as of November 30, 2019. The Company does not anticipate either transaction to materially impact the Company's EBITDA during the remainder of 2019.
"We are pleased to have completed the sale of Marriott Griffin Gate Resort & Spa and Marriott Chicago at Medical District/UIC, two legacy non-core assets at the low end of our portfolio's quality spectrum," commented Marcel Verbaas, Xenia's Chairman and Chief Executive Officer. "Combined, these hotels achieved 2018 RevPAR and Hotel EBITDA per key that were approximately 35% and 45%, respectively, below the remainder of our portfolio. In addition to the sale of Marriott Griffin Gate allowing us to exit a non-strategic market and avoid a significant near-term additional capital investment, we expected both of these hotels to deliver below-average bottom-line growth as a result of specific asset and market challenges. The sale of these assets further exemplifies our ability to enhance our portfolio quality and longer-term growth profile through strategic dispositions."
Proceeds from the sales will be utilized for general corporate purposes which may include debt repayments, potential acquisitions consistent with the Company's long-term strategy, and share repurchases under the Company's existing authorization.
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 
