CAMBRIDGE, MA — Xenia Hotels & Resorts, Inc. announced it has sold the 221-room Residence Inn Cambridge in Cambridge, MA for a price of $107.5 million, or approximately $486,500 per key.
The sale price represents a 11.6x multiple and a 7.8% capitalization rate on the hotel’s 2019 Hotel EBITDA and net operating income, respectively, the company said in a statement.
In connection with the transaction, the buyer assumed the $60.3 million mortgage collateralized by the hotel. The transaction generated approximately $46.0 million in net proceeds for the Company after transaction costs. Proceeds from the sale will be utilized to repay borrowings under the Company’s credit facilities and for general corporate purposes. The Company also retained the approximately $3.8 million balance in the FF&E reserve.
“We are pleased to have completed the sale of Residence Inn Boston Cambridge, the only remaining select service asset in our portfolio,” commented Marcel Verbaas, Xenia’s Chairman and Chief Executive Officer. “The sale of this hotel is the culmination of a highly competitive process, and we are pleased with the outcome given current market fundamentals. This transaction, which exemplifies our focus on value creation for our shareholders and our continued dedication to our long-term strategy, has created additional balance sheet flexibility during this unprecedented time.”
The previously announced sale of Marriott Napa Valley Hotel & Spa is expected to close before the end of October in accordance with the terms of the purchase and sale agreement that the Company executed in August.