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Fairmont Dallas Hotel – Image Credit Fairmont Hotels
The transaction price is approximately $203,670 per room, representing an 8.6x multiple on the property’s Hotel EBITDA.
- Xenia Hotels & Resorts, Inc. has completed the sale of the 545-room Fairmont Dallas for $111 million.
- The transaction price is approximately $203,670 per room, representing an 8.6x multiple on the property’s Hotel EBITDA.
Xenia Hotels & Resorts, Inc. has announced the successful sale of the Fairmont Dallas for $111 million. Based on the hotel’s 545-room capacity, the price translates to around $203,670 per key. The sale price demonstrates an 8.6x multiple and a 10.0% capitalization rate on the property’s Hotel EBITDA and Net Operating Income for the twelve months ended February 28, 2025, respectively.
The sale of the Fairmont Dallas, which was initially opened in 1969 and purchased by Xenia in 2011 for $69 million, is a strategic move for the company. Marcel Verbaas, Chair and CEO of Xenia, expressed satisfaction with the sale, citing an unlevered IRR of 11.3% during Xenia’s ownership period. The sale also reflects the company’s ongoing focus on upgrading the quality of their portfolio, prudent capital allocation, and maintaining balance sheet strength and flexibility.
The decision to sell was influenced by the property’s significant near-term capital needs and the expected impact on the market from the upcoming redevelopment of the Dallas Convention Center. The transaction has also increased the overall quality of Xenia’s portfolio, boosting the historical RevPAR and EBITDA/key averages.
Xenia intends to use the net proceeds from the sale for general corporate purposes. These may include debt repayments, potential acquisitions in line with the company’s strategy, and/or share repurchases under the company’s existing authorization.
Xenia Hotels & Resorts, Inc. owns 30 hotels across 14 states, focusing on luxury and upper upscale hotels and resorts in the top 25 lodging markets and key leisure destinations in the United States. The company’s hotels are operated and/or licensed by industry leaders such as Marriott, Hyatt, Kimpton, Fairmont, Loews, Hilton, and The Kessler Collection.
