DoubleTree near Dupont Circle Commands $65M
- Apr 25, 2016
“While we believe in the long-term strength of the Washington D.C. market, as evidenced by our continued ownership of two outstanding hotels in the area—the Hilton Garden Inn Washington D.C. and the Lorien Hotel in Alexandria, Va.—the sale of this asset allowed us to reduce our exposure in the market, as well as monetize a portion of the upside of a potential repositioning of the hotel without taking the operational risk associated with the significant required renovation,” said Marcel Verbaas, president & CEO of Xenia, in a prepared statement.
The Orlando-based REIT reports that the $65 million price tag represents a 5.5 percent cap rate on 2015 NOI and a 15.7 multiple of the asset’s earnings before interest, taxes, depreciation and amortization for last year. Xenia also retained approximately $3.1 million, representing the balance in the hotel’s capital expenditure reserve account.
Located at 1515 Rhode Island Blvd., the Washington hotel sits within a 10-minute walk from Dupont Circle, Logan Circle and Lafayette Square. The DoubleTree features a fitness center, restaurant and bar, 24-hour business center, nine meeting rooms, gift shop and 6,700 square feet of flexible meeting space.
Xenia Hotels & Resorts is based in Florida and invests primarily in upscale hotels with a focus on top lodging markets and key touristic destinations. The company owns a 12,328-key portfolio with 49 hotels spread across 21 states. Xenia is publicly traded since 2014 and recently named Atish Shah as EVP, CFO and treasurer.
Image courtesy of DoubleTree by Hilton