Xenia Hotels & Resorts has sold the Hyatt Regency Orange County hotel in Garden Grove, California, US, for $137m.
The hotel offers 656 rooms and suites featuring flatscreen TVs and modern decor.
Xenia Hotels & Resorts president and CEO Marcel Verbaas said: "This transaction allowed us to take advantage of the private market valuation for a legacy hotel in our portfolio that we expected to deliver below-average growth as additional supply is entering this competitive and relatively low-rated market.
"Given the market’s dynamics and the hotel’s position, we concluded that near-term capital requirements would not represent a prudent additional investment for the company."
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The company has retained around $5.9m in the hotel’s capital expenditure reserve account.
Verbaas added: "This disposition is another step in our evolution as it further exemplifies our ability to enhance our portfolio through disciplined acquisitions and dispositions, and thoughtful capital allocation."
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Xenia Hotels & Resorts expanded recently in Birmingham, Alabama, with the new Grand Bohemian Hotel Mountain Brook, which features 100 rooms, a grand ballroom and a 24h fitness centre.
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