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Xenia Hotels & Resorts divests two hotel properties

25 Nov 2020 (Last Updated November 25th, 2020 13:08)

Xenia Hotels & Resorts has completed the divestment of two hotel properties as part of its efforts to strengthen its balance sheet.

Xenia Hotels & Resorts divests two hotel properties
The two divested hotel properties are Hotel Commonwealth in Boston, Massachusetts and the Renaissance Austin Hotel. Credit: Rhema Kallianpur on Unsplash.

Xenia Hotels & Resorts has completed the divestment of two hotel properties as part of its efforts to strengthen its balance sheet.

The sale included the 245-room Hotel Commonwealth in Boston, Massachusetts for $113m, and the 492-room Renaissance Austin Hotel in Austin, Texas for $70m.

The company has also retained $6.6m in cash that was held in the properties’ FF&E reserves.

Xenia chairman and CEO Marcel Verbaas said: “We are pleased to have completed both of these transactions in an efficient manner.

“Year to date, we have now sold four hotels for nearly $400m. These dispositions have allowed us to efficiently raise a significant amount of capital at a superior cost to other alternatives.

“Additionally, we have successfully increased our balance sheet flexibility to help position the company to be opportunistic as the recovery takes hold.”

The company plans to use the proceeds to reduce its debt as well as for general corporate purposes.

Overall, Xenia Hotels & Resorts owns 35 properties which include 10,012 rooms across 15 states.

An affiliate of The Axton Group bought the Renaissance Austin Hotel. The new owner plans to upgrade the public areas and meeting rooms of the hotel.

Axton founder and CEO Peter Oberndorf said: “It is now our responsibility to reposition and enhance this property, guiding it on a path of recovery and ultimately leaving it in a better place than we entered.”