Date: January 2020
Location: Lexington, Kentucky and Medical District/UIC, Chicago
Name: Marriott Griffin Gate Resort & Spa and Marriott Chicago
No. of Keys: 409 and 113
Seller: Orlando-based Xenia Hotels & Resorts completed the sale of the Marriott Griffin Gate Resort & Spa for $51.5 million and the 113-room Marriott Chicago for $10 million.
The company said proceeds from the sales will be used for general corporate purposes that may include debt repayments, potential acquisitions in alignment with the company’s long-term strategy and share repurchases.
Xenia CEO Marcel Verbaas noted that the two properties were “at the low end of our portfolio’s quality spectrum.”
“Combined, these hotels achieved 2018 RevPAR and Hotel EBITDA per key that were approximately 35% and 45%, respectively, below the remainder of our portfolio,” Verbaas said. “The sale further exemplifies our ability to enhance our portfolio quality and longer-term growth profile through strategic dispositions.”
Xenia Hotels & Resorts is a self-advised and self-administered real estate investment trust that invests primarily in uniquely positioned luxury and upper upscale hotels and resorts, with a focus on the top 25 U.S. lodging markets. The company owns 39 hotels comprising 11,245 rooms across 16 states.
Buyer: The deal is expected to close Dec. 16, Craig Sundell, GM at the Marriott Griffin Gate said. He said the potential new owners (unknown at this stage) are expected to announce a multi-million renovation.
“The new ownership group is already throwing numbers out in the $30 million to $35 million range,” Sundell said. “The exciting part of it is it is going to remain a Marriott.”
The hotel was built in 1981 and has a golf course, which Sundell said will remain. The property also is a resort and a restaurant, The Mansion.
Xenia, then known as Inland American real estate trust, purchased the Griffin Gate property as well as two other hotels in 2011 for $262.5 million from Diamond Rock Hospitality. The property transfer listed the sale price for the Griffin Gate hotel as $62.5 million.
The golf course parcel is valued at $2 million, according to PVA David O’Neill.
At 409 rooms, the Griffin Gate is still Lexington’s largest hotel, topping the 367-room downtown Hilton and the 366-room Hyatt Regency. It is twice as big as the Marriott coming to City Center.
The Marriott Chicago had an full-scale guest room renovation in April 2018….and is managed by Davidson Hotels and Resorts…ad the new buyer is also unknown.
Price: US$51.5m and $10m
Price per Key: $125,917 and $88,496
THPT Comment: Xenia are just tidying up their portfolio…we shall find out who the new buyers are.
First Seen: Orlando Biz Journal
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