Xenia Hotels & Resorts sells Hyatt Regency Orange County for $137m

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.

"This disposition is another step in our evolution as it further exemplifies our ability to enhance our portfolio."

"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."

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."

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.