Xenia acquires two hotels from Hyatt
Phoenix/Scottsdale, Arizona – 5 October 2017 –
Xenia Hotels & Resorts acquires Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch, a 493-room upper upscale resort located in Scottsdale, Arizona, and Royal Palms Resort & Spa, a 119-room luxury resort located in Phoenix, Arizona that is part of The Unbound Collection by Hyatt.
The Company acquired the two hotels from affiliates of Hyatt Hotels Corporation for a combined purchase price of US$305 million, or approximately US$498,350 per key.
“The acquisition of Hyatt Regency Scottsdale and Royal Palms demonstrates our continued effort to invest in high-quality, uniquely positioned, premium full service and lifestyle hotels in top lodging markets,” said Marcel Verbaas, president and chief executive officer of Xenia.
“While the hotels are in good physical condition and have strong in-place cash flows, we believe we will be able to drive further growth as we work with Hyatt to continue to optimise operations, reap the benefits of the recent branding of Royal Palms and make targeted capital improvements to further upgrade both properties.