Xenia Hotels & Resorts Completes US$53.5 Million Acquisition Of Newly Branded Waldorf Astoria Atlanta Buckhead

Date: December 2018

Location: Buckhead, Atlanta, Georgia, USA

Name: Was Mandarin Oriental Atlanta – now re-branded Waldorf Astoria Atlanta Buckhead

No. of Keys: 127

Seller: The hotel was opened as The Mansion on Peachtree and is a 580 ft (177 m) tall skyscraper in Atlanta, Georgia at a build cost od US$197m and operated by Rosewood.

It was constructed from 2006 to 2008 and has 42 floors. It is the 12th tallest building in Atlanta and the fifteenth tallest residential high-rise in the United States.

The design architect for the building was Robert A.M. Stern Architects with Atlanta architects Milton Pate Architects serving as the Architect of Record.

The project was developed by Atlanta-based City Centre Properties, LLC and constructed by Holder Construction Company.

It was sold in foreclosure to iStar Financial on February 3, 2010 for $66.1 million. It was renamed Mandarin Oriental, Atlanta in 2012.

Buyer: Xenia Hotels & Resorts – a self-advised and self-administered REIT that invests primarily in premium full service and lifestyle hotels, with a focus on the top 25 U.S. lodging markets as well as key leisure destinations in the United States.

The Company owns 41 hotels comprising 11,393 rooms, across 17 states. Xenia’s hotels are primarily in the luxury and upper upscale segments, and operated and/or licensed by brands such as Marriott, Hyatt, IHG’s Kimpton, Accor’s Fairmont, Loews, and Hilton, as well as leading independent management companies including Sage Hospitality, The Kessler Collection, and Davidson Hotels & Resorts.

Xenia Hotels & Resorts, Inc. today announced its acquisition of the former Mandarin Oriental, Atlanta, a luxury hotel located in the upscale Buckhead area of Atlanta, Georgia.

The hotel was rebranded as Waldorf Astoria Atlanta Buckhead immediately upon completion of this acquisition.

“We are thrilled to have acquired this luxury hotel and renew our relationship with Hilton through the re-branding of the asset as Atlanta’s first Waldorf Astoria hotel,” said Marcel Verbaas, Chairman and Chief Executive Officer of Xenia.

“This transaction further demonstrates our continued efforts to invest in high-quality, uniquely positioned, premium full service and lifestyle hotels in top lodging markets that provide opportunities to drive growth through our best-in-class asset management and project management practices.

This iconic hotel, which is located in an outstanding sub-market with diverse demand generators and high barriers to entry, becomes the first Waldorf Astoria in our portfolio and our 12th luxury hotel.

While the hotel has exhibited strong top line results, achieving RevPAR of $250.29 during the trailing twelve months ending October 31, 2018, we believe this transaction provides an opportunity to unlock significant value as we work with Hilton to optimise performance.”

Waldorf Astoria Atlanta Buckhead becomes the 41st hotel in Xenia’s high-quality portfolio of luxury and upper upscale hotels and represents the Company’s fourth luxury hotel acquisition this year – Park Hyatt Aviara Resort, Fairmont Pittsburgh and Ritz-Carlton Denver, as well as selling Hilton Garden Inn Washington DC and the Aston Waikiki Beach.

The hotel is located in an iconic 42-story mixed-use development and includes guest rooms averaging 620 square feet, a 15,000 square foot spa, which includes 14 private treatment rooms and a 60-foot climate-controlled indoor pool, approximately 8,300 square feet of meeting and pre-function space, and The Café & Bar, which offers all-day dining.

Simultaneously with the acquisition of the hotel, Xenia also completed the $7 million acquisition of a free-standing restaurant unit that is part of the same mixed-use development. The restaurant, boasting prominent frontage on Peachtree Road, is currently leased and operated as Del Frisco’s Grille.

The newly branded WA hotel is located in Buckhead, Atlanta’s most prominent and affluent sub-market.

The hotel benefits from its prime location in the financial, shopping, entertainment, and dining district, with access to numerous amenities within a close walk-able radius, including approximately 14 million square feet of Class A office space, over 3,000 residential units, and high-end retail including Lenox Square, The Shops Around Lenox, The Shops Buckhead Atlanta and Phipps Plaza.

Price: US$53.5m

Price per Key: US$421,000

THPT Comment: Onwards and upwards for Xenia…any expansion outside of the USA planned?

First Seen: Xenia website

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