ORLANDO, Fla., May 30, 2017 /PRNewswire/ -- Xenia Hotels
& Resorts, Inc. (NYSE: XHR) ("Xenia" or the "Company") today announced its acquisition of
the 815-key Hyatt Regency Grand Cypress in Orlando, Florida from an affiliate of Hyatt Hotels
Corporation for a purchase price of $205.5 million, or approximately $252,000 per key. The acquisition was funded with cash available on the Company's balance sheet and its
senior unsecured credit facility. Additional details on the transaction can be found in the presentation posted on the
Company's website, www.xeniareit.com.
"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," said Marcel Verbaas, President and Chief Executive Officer
of Xenia.
"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. Additionally, we expect to grow earnings
and improve the hotel's competitive positioning through strategic capital investments over the next several years, including the
enhancement and expansion of the property's meeting facilities," Mr. Verbaas continued
The 815-key convention resort offers six food and beverage outlets, over 65,000 square feet of high-end indoor and outdoor
meeting and event space, a full-service spa, preferred access to 45-holes of Jack Nicklaus
signature-designed golf courses, as well as other unique amenities. The hotel is ideally located near high-quality demand
generators including Walt Disney World theme parks, Disney Springs outdoor shopping, dining and
entertainment district, the Wide World of Sports, and a myriad of public golf courses. In addition, the hotel benefits from its
proximity to additional demand generators such as Universal Orlando Resort, Sea World Orlando, the Orange County Convention Center, and downtown Orlando.
Backed by the Hyatt Regency brand that connects guests to who and what matter most to them, the family-friendly hotel has
received roughly $32 million in capital investment over the past 5 years, including major
improvements to the public spaces, food and beverage outlets, as well as to the exterior and back-of house. The Company
plans to position the hotel to capture additional revenue and market share through a renovation of the guestrooms and existing
meeting space, as well as the addition of a new ballroom. Additionally, there are long-term growth opportunities at the
hotel as the property is situated on a 30-acre site.
Orlando is one of the most strategic and desirable places for travel and was the #1 most
visited destination in the United States in 2015 and 2016. Additionally, Orlando is home to the second busiest and largest convention center in the country and ranked first for job
growth in 2016. The hotel is in the Lake Buena Vista submarket of Orlando, which has consistently been the strongest submarket in Orlando in
terms of Occupancy, ADR and RevPAR.
The hotel will continue to be managed by Hyatt, which has managed the property since its opening in 1984. In addition to
this hotel, Hyatt manages five other hotels owned by Xenia, including Hyatt Centric Key West
Resort & Spa, Hyatt Regency Santa Clara, Andaz San Diego, Andaz Savannah and Andaz Napa.
"We are excited to expand our relationship with Hyatt," continued Mr. Verbaas. "Hyatt is a leader in the lodging
industry and we have been extremely pleased with the results at our other Hyatt-managed hotels. We have confidence in our
ability to work together to achieve similarly positive results at Hyatt Regency Grand Cypress."
"We are thrilled to be expanding our strong relationship with Xenia and continuing to advance
our capital recycling strategy," said Steve Haggerty, global head of capital strategy and
franchising for Hyatt. "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."
The term "Hyatt" is used in this release for convenience to refer to Hyatt Hotels Corporation and/or one or more of its
affiliates
About Xenia Hotels & Resorts, Inc.
Xenia Hotels & Resorts, Inc. is a self-advised and self-administered REIT that invests primarily in premium full
service, lifestyle and urban upscale hotels, with a focus on the top 25 U.S. lodging markets as well as key leisure destinations
in the United States. The Company owns 42 hotels, including 40 wholly owned hotels, comprising
11,595 rooms, across 20 states and the District of Columbia. Xenia's hotels are operated and/or licensed by industry leaders such as Marriott®, Kimpton®, Hyatt®, Aston®,
Fairmont®, Hilton®, and Loews®, as well as leading independent management companies including Sage Hospitality, The Kessler
Collection, Urgo Hotels & Resorts, Davidson Hotels & Resorts and Concord Hospitality. For more information on
Xenia's business, refer to the Company website at www.xeniareit.com.
About Hyatt Regency
The Hyatt Regency brand prides itself on connecting travelers to who and what matters most to them. More than 175
conveniently located Hyatt Regency urban and resort locations in over 30 countries around the world serve as the go-to gathering
space for every occasion – from efficient business meetings to memorable family vacations. The brand offers a one-stop experience
that puts everything guests need right at their fingertips. Hyatt Regency hotels and resorts offer a full range of services and
amenities, including the space to work, engage or relax; notable culinary experiences; technology-enabled ways to collaborate;
and expert event planners who can take care of every detail. For more information, please visit www.hyattregency.com.
About Hyatt Hotels Corporation
Hyatt Hotels Corporation, headquartered in Chicago, is a leading global hospitality
company with a portfolio of 13 premier brands. As of March 31, 2017 the Company's portfolio
included 708 properties in 56 countries. The Company's purpose to care for people so they can be their best informs its business
decisions and growth strategy and is intended to create value for shareholders, build relationships with guests and attract the
best colleagues in the industry. The Company's subsidiaries develop, own, operate, manage, franchise, license or provide services
to hotels, resorts, branded residences and vacation ownership properties, including under the Park Hyatt ®,
Miraval ®, Grand Hyatt ®, Hyatt Regency ®, Hyatt ®,
Andaz ®, Hyatt Centric ®, The Unbound Collection by Hyatt ™, Hyatt Place ®, Hyatt House ®, Hyatt Ziva ™, Hyatt Zilara ™ and Hyatt Residence Club ® brand names
and have locations on six continents. For more information, visit www.hyatt.com.
This news release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of
1995. Forward-looking statements may be identified by the use of words such as "anticipate," "believe," "expect," "will," "may,"
"estimate," "plan," "outlook," "forecasts," and "project" and other similar expressions that predict or indicate future events or
trends or that are not statements of historical matters. Forward-looking statements include statements in this press release
regarding the acquisition of certain properties identified in the news release and Xenia's
expectations with respect to projected future performance of the properties. Forward-looking statements are based on Xenia's current expectations and beliefs, which we believe to be reasonable, and involve a number of risks
and uncertainties that are difficult to predict and that could cause actual results to differ materially from those stated or
implied by the forward-looking statements. A further description of these risks, uncertainties, and other matters can be found in
the Risk Factors detailed in Xenia's Annual Report on Form 10-K as filed on February 28, 2017, as well as other filings we make with the Securities and Exchange Commission. Because
forward-looking statements involve risks and uncertainties, actual results and events may differ materially from results and
events currently expected by Xenia, and Xenia assumes no
obligation and expressly disclaims any duty to update information contained in this news release except as required by
law.
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SOURCE Xenia Hotels & Resorts, Inc.