Xenia Hotels & Resorts has divested 300-room Hilton Garden Inn Washington D.C. Downtown for $128m.

Proceeds from the divestment will be used for general corporate purposes which may include repayment of debt, acquisitions and share repurchases.

Xenia’s chairman and CEO Marcel Verbaas said: “We are pleased to have completed the sale of Hilton Garden Inn Washington D.C. Downtown.

“The sale of this select-service hotel at an attractive valuation further exemplifies our dedication to upgrading the quality of our portfolio by making targeted investments and completing selective dispositions consistent with our long-term investment strategy of primarily owning high-quality luxury and upper upscale hotels in top 25 U.S. lodging markets and key leisure destinations.”

The price is a 15.2x multiple and a 5.8% capitalisation rate on the hotel’s trailing twelve month EBITDA and net operating income, respectively, as of 31 October 2018.

Following the completion of this divestment and the addition of the recently purchased Park Hyatt Aviara Resort, Golf Club & Spa, Xenia’s portfolio comprises 40 hotels.

It has 11 luxury hotels and 27 premium scale hotels, which account for 24% and 72%, respectively, of its total room count.

Verbaas added: “We remain bullish on the long-term strength of the greater Washington D.C. market, and particularly the Northern Virginia market, as evidenced by our acquisition of The Ritz-Carlton, Pentagon City, in Arlington, Virginia, in 2017 and our continued ownership of the recently renovated Lorien Hotel in Alexandria, Virginia. We expect both hotels to benefit greatly from the vibrant economic climate in the area, including the recently announced addition of one of Amazon’s headquarter locations.”