Inland American Real Estate Trust Inc. plans to spin off most of its hotels into a publicly traded company.
The Oak Brook-based company said Monday it intends to create a separate company named Xenia Hotels & Resorts Inc., which will own 46 hotels under brand names including Marriott, Hilton, Hyatt, and Starwood. Xenia is proposed as a self-managed real estate investment trust with headquarters in Orlando, Florida.
Inland American president Thomas P. McGuinness said the proposed spin-off is part of the company’s strategy of focusing its portfolio into three asset classes — lodging, multi-tenant retail and student housing — and “provide liquidity events for our stockholders.”
Xenia will be run by Marcel Verbaas, who has managed Inland American lodgings assets since 2007.
“Xenia Hotels & Resorts will have a premium collection of properties affiliated with some of the strongest brands in the lodging industry,” Verbaas said in a news release. “These assets have performed well as part of Inland American’s portfolio, delivering strong cash flows and attractive returns, and as a standalone company, Xenia will have the additional strategic and financial flexibility to continue delivering growth and creating stockholder value.”
Inland American is also trying to sell its remaining suburban select-service hotels now overseen by the Xenia team.