Xenia Hotels & Resorts, Inc. today announced its acquisition of The Ritz-Carlton Pentagon City, a 365-room luxury hotel located in Arlington, Virginia, for a purchase price of $105 million, or approximately $287,670 per key. The acquisition was funded with cash available on the Company’s balance sheet and its senior unsecured credit facility. The purchase price represents an estimated 11.3x multiple on 2017 forecasted Hotel EBITDA. The Company currently forecasts that the hotel will generate approximately $2 million of Hotel EBITDA for the remainder of 2017.
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“We are pleased to add The Ritz-Carlton Pentagon City to our portfolio of high-quality hotels and resorts as we continue to increase our concentration in the luxury and upper upscale segments through the acquisition of our first Ritz-Carlton,” said Marcel Verbaas, President and Chief Executive Officer of Xenia. “The hotel’s excellent location and exposure to a diverse set of demand generators in the Arlington and Washington D.C. markets, its strong in-place cash flow, and our ability to acquire the hotel at an attractive valuation were key considerations in our decision to acquire this outstanding asset. We look forward to expanding our long-standing relationship with Marriott and building on the existing operations at the property as we benefit from the hotel’s recent rooms renovation and the long-term strength and stability of the D.C. market.”
The 18-story luxury hotel features 365 rooms and 19,000 square feet of meeting space, and has recently completed an $11 million renovation of its guestrooms and club lounge. In addition to being in excellent physical condition, the hotel is uniquely positioned within the market, as it is directly connected to The Fashion Centre at Pentagon City. This mixed-use facility contains approximately 870,000 square feet of retail and restaurant space, as well as an approximately 170,000 square feet office tower. The mall features 170 retailers and recently underwent a $90 million renovation and 52,000 square foot expansion.
The hotel is located proximate to the Pentagon, Crystal City and Rosslyn business districts, as well as Old Town Alexandria and Washington D.C. The property is the closest hotel to The Pentagon and is the only luxury hotel in the high-end Arlington, Virginia market. Arlington is one of the top performing submarkets in the D.C. Metro area due to its proximity to major government institutions, with over 40 million square feet of office space, various leisure demand generators, and transportation hubs such as Ronald Reagan National Airport and the region’s Metro system.
Read the full article: https://eturbonews.com/166833/xenia-hotels-resorts-acquires-ritz-carlton-pentagon-city-105-million
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