Xenia Hotels & Resorts has completed the sale of the Fairmont Dallas to an unknown buyer for $111 million.

The transaction price for the 545-room property works out to approximately $203,670 per room.

The sale price also 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.

“We are pleased to have completed the sale of Fairmont Dallas, which opened in 1969 and which we acquired in 2011 for $69 million,” said Marcel Verbaas, chair and chief executive officer of Xenia. “The unlevered IRR during our ownership period is 11.3%, which is an excellent outcome for this investment, particularly given the pandemic’s significant negative impact on cash flows during 2020 and 2021. The disposition reflects our ongoing focus on upgrading the quality of the portfolio, prudent capital allocation, and maintaining balance sheet strength and flexibility.

“Because of the property’s significant and disruptive near-term capital needs as well as the expected impact on the market from the upcoming redevelopment of the Dallas Convention Center, we believe that this sale and the avoidance of the significant additional capital investment is a superior outcome for the Company relative to continued ownership and re-investment. Additionally, the transaction has increased the overall quality of our portfolio, as Fairmont Dallas’ historical RevPAR and EBITDA/key trailed meaningfully below our portfolio 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.