Blog Coverage: Xenia Hotels & Resorts Buys Hyatt’s Iconic Luxury Resort in Orlando, Florida

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LONDON, UK / ACCESSWIRE / June 1, 2017 / Active Wall St. blog coverage looks at the headline from Xenia Hotels & Resorts, Inc. (NYSE: XHR) as the Company announced on May 30, 2017, that it had acquired the 815-key Hyatt Regency Grand Cypress in Orlando, Florida for $205.5 million. The offer price works out to approximately $252,000 per key. Register with us now for your free membership and blog access at:

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One of Xenia Hotels & Resorts’ competitors within the REIT – Hotel/Motel space, Apple Hospitality REIT, Inc. (NYSE: APLE), announced on May 04, 2017, its results of operations for Q1 2017. AWS will be initiating a research report on Apple Hospitality REIT in the coming days.

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Commenting on the acquisition, Marcel Verbaas, President and CEO of Xenia said:

“The acquisition of Hyatt Regency Grand Cypress represents a unique opportunity to increase our presence in the Orlando market, a market we know extremely well and believe to be poised for long-term growth due to a favorable supply and demand outlook. We are excited that we have been able to recycle a portion of the proceeds of our recent sales of lower quality assets into an outstanding and well-performing hotel at a price that is well below replacement cost.”

Steve Haggerty, Global Head of Capital Strategy and Franchising for Hyatt, added:

“We are thrilled to be expanding our strong relationship with Xenia and continuing to advance our capital recycling strategy. Hyatt Regency Grand Cypress offers a one-stop experience that puts everything guests need at their fingertips. Whether travelers want to connect or simply recharge, the forthcoming renovations will continue to build on the hotel’s reputation as a leading destination in such a critical market.”

Xenia’s plans for Hyatt Regency Grand Cypress

Xenia acquired the property from an affiliate of Hyatt Hotels Corporation using a mix of cash in hand and senior unsecured credit facility.

Xenia plans to improve the Hotel’s overall positioning by making strategic capital investments over the next few years. In the last five years the Hotel has received approximately $32 million in capital investment to improve its public spaces, food and beverage outlets, as well as to the exterior and back-of house. Xenia plans to make additional and extensive renovations of the Hotel’s rooms and existing meeting spaces. It also plans to add a new ballroom to the property. Xenia is making the necessary changes with the aim of creating additional revenue sources and increase the market share in the region. Xenia also plans to exploit other long-term opportunities available across the 30-acre property on which the Hotel is located.

Hyatt has been managing the property since 1984 and post-acquisition by Xenia, Hyatt will continue to manage the property.

Hyatt and Xenia have a strong working relationship. Hyatt is already managing five other hotel properties owned by Xenia. These properties include Hyatt Centric Key West Resort & Spa, Hyatt Regency Santa Clara, Andaz San Diego, Andaz Savannah, and Andaz Napa.

Why Hyatt Regency Grand Cypress is a strategic acquisition?

Hyatt Regency Grand Cypress is a property owned by an affiliate of the Chicago based Hyatt Hotels Corporation, which has a portfolio of 698 properties in 56 countries, as on December 31, 2016. Hyatt Regency Grand Cypress is one of Hyatt’s luxury resort which boasts of 815 guestrooms, 6 F&B outlets, more than 65,000 sq. ft. of indoor and outdoor meeting, wedding and event space, a full-service spa, 12 tennis courts, 45 holes of Jack Nicklaus signature-designed golf courses and other amenities.

The property is located in close proximity to Orlando’s attractions like Walt Disney World theme parks, Disney Springs outdoor shopping, dining and entertainment district, the Wide World of Sports, Universal Orlando Resort, Sea World Orlando, the Orange County Convention Center, and downtown Orlando.

Orlando as a destination is ranked as the number 1 most visited destination in the United States in 2015 and 2016. Also, it is home to the second busiest and largest convention center in the country. Hyatt Regency Grand Cypress is located in the Lake Buena Vista submarket of Orlando which has the strongest submarket in Orlando in terms of Occupancy, ADR (average daily rate) and RevPAR (revenue per available room).

About Xenia

Xenia is a real estate investment trust (REIT) that invests in premium full service, lifestyle and urban upscale hotels at key lodging markets and leisure destinations in US. It owns 41 hotels, out of which 39 are wholly owned hotels across 20 states and the District of Columbia. These hotel properties are managed by hospitality majors like Marriott, Kimpton, Hyatt, Aston, Fairmont, Loews, and other independent management Companies like Sage Hospitality, The Kessler Collection, Urgo Hotels & Resorts, Davidson Hotels & Resorts, and Concord Hospitality.

Stock Performance

On Wednesday, May 31, 2017, the stock closed the trading session at $17.90, rising 1.02% from its previous closing price of $17.72. A total volume of 1.25 million shares have exchanged hands, which was higher than the 3-month average volume of 442.21 thousand shares. Xenia Hotels & Resorts’ stock price surged 0.90% in the last three months, 3.35% in the past six months, and 11.04% in the previous twelve months. Shares of the Company have a PE ratio of 18.68. The Company’s shares have a dividend yield of 6.15% and currently have a market cap of $1.91 billion.

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