Orlando-based Xenia Hotels & Resorts has completed the disposition of the 107-key Lorien Hotel & Spa in Alexandria, Va., for $30 million to Wichita, Kansas-based LodgeWorks. Other terms were not disclosed.
Lodgworks plans to convert the hotel to the Archer Hotel Old Town Alexandria. Under the new ownership, the hotel is reportedly going to undergo $4 million redesign.
According to Xenia, the sale price represents a 21.3x multiple and a 3.1 percent capitalization rate on hotel earnings before interest, taxes, depreciation and amortization and net operating income for the trailing 12 months ended May 31.
Xenia plans to use the proceeds from this sale for general corporate activities. These may include buying back shares, repaying debt, funding capital expenditures, and pursuing acquisitions aligned with Xenia’s long-term strategic goals.
The Lorien has been managed for the past two years by the Davidson Hospitality Group, and before that it was a Kimpton Hotel. Kimpton completed a $2.51 million redesign in 2018.