India, April 11 -- Xenia Hotels & Resorts (XHR) Friday has sold the 545-room Fairmont Dallas for $111 million, or approximately $203,670 per key, reflecting an 8.6x Hotel EBITDA multiple and a 10% cap rate for the 12 months ending February 2025-excluding an estimated $80 million in upcoming capital expenditures.
CEO Marcel Verbaas highlighted the sale as a strategic move to upgrade portfolio quality and avoid costly renovations amid anticipated disruption from the Dallas Convention Center redevelopment. Xenia originally acquired the hotel in 2011 for $69 million, achieving an 11.3% unlevered IRR despite pandemic-era challenges.
Proceeds will go toward corporate needs, potentially including debt reduction, acquisitions, or share repurchase...