ORLANDO, Fla., April 20, 2016 — Xenia Hotels & Resorts, Inc. (NYSE: XHR) ("Xenia" or the "Company") today announced that it has sold the 220-room DoubleTree by Hilton Washington D.C. ("Hotel" or "DoubleTree DC") for a sale price of $65 million. The price represents a 15.7x multiple on the Hotel's 2015 EBITDA and a 5.5% capitalization rate on 2015 net operating income. In addition to the purchase price, the Company retained the approximately $3.1 million balance in the hotel's capital expenditure reserve account.
"We are pleased to have completed the sale of the DoubleTree DC, consistent with our plan to selectively dispose of assets while bolstering our balance sheet and investing in our core portfolio," said Marcel Verbaas, President and Chief Executive Officer of Xenia. "The sale of this hotel at an attractive valuation not only exemplifies our capital allocation strategy of harvesting value from lower-quality assets in the portfolio that may have significant near-term capital requirements, but it also highlights the value of the remaining assets in our high-quality portfolio. While we believe in the long-term strength of the Washington D.C. market, as evidenced by our continued ownership of two outstanding hotels in the area, the Hilton Garden Inn Washington D.C. and the Lorien Hotel in Alexandria, VA, the sale of this asset allowed us to reduce our exposure in the market, as well as monetize a portion of the upside of a potential repositioning of the hotel without taking the operational risk associated with the significant required renovation."
Proceeds from the sale will be utilized for general corporate purposes which may include share repurchases under the Company's existing $100 million repurchase authorization, debt repayments and potential acquisitions consistent with the Company's long-term strategy of investing in high-quality assets primarily located in top 25 lodging markets and key leisure destinations.
