Dealmaker: Xenia Hotels Buys Fairmont Pittsburgh Hotel for $30M
Michael Tucker email@example.com
Xenia Hotels & Resorts, Orlando, Fla., acquired 185-room Fairmont Pittsburgh hotel for $30 million, or $162,000 per key.
The real estate investment trust funded the acquisition with balance sheet cash. The purchase price represented an 11 times multiple of the asset's 2018 forecasted earnings.
Xenia Chairman and CEO Marcel Verbaas noted Fairmont Pittsburgh has the highest revenue per available room in Pittsburgh, $194.72 during the 12 months ending July 31.
"While the hotel is in good physical condition, we believe we will be able to drive earnings growth as we integrate the hotel into our platform and further enhance the property's position," Verbaas said.
Fairmont Pittsburgh includes 12,000 square feet of meeting space, a 6,000-square-foot health club and spa and a newly renovated bar and restaurant in downtown Pittsburgh close to five Fortune 500 company headquarters, 23 million square feet of Class A office space and three venues home to the city's professional football, baseball and hockey teams.
The hotel is part of Three PNC Plaza, a mixed-use development with a 305,000-square-foot office component with ground-level retail, 28 residential condominiums and Fairmont Pittsburgh.
Fairmont Pittsburgh became the 40th hotel in Xenia's portfolio and the company's second Fairmont-branded hotel. In August the firm acquired the 202-room Ritz-Carlton Denver for $100.25 million, or $496,000 per key.