Galleria-Area Hotel Sold In $119M Portfolio
Xenia Hotels & Resorts sold one of its four Houston-area hotels as part of a larger deal totaling 683 rooms. In addition to three hotels in St. Louis, Denver and Chicago, the Homewood Suites by Hilton near the Galleria sold to an undisclosed buyer for about $119M. Xenia retained $1.5M in capital reserve funds related to the properties, reports the Houston Business Journal. Xenia president and CEO Marcel Verbaas said the properties were non-core assets with projected RevPAR and earnings per key that were expected to significantly lag.
"While we remain bullish on the long-term prospects of our remaining higher-quality hotels in Houston, Denver and Chicago, the sale of these select service assets allowed us to reduce our overall exposure in these markets,” Verbaas said. [HBJ]