Inland American to spin off hotels

SHARE Inland American to spin off hotels

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.

h/t Chicago Real Estate Daily

The Latest
Convicted of offering to bomb U.S. buildings for $2 million, ordering murder of a rival drug dealer, 76-year-old El Rukn founder was denied release under legislation allowing judges to consider “compassionate release” for aging inmates.
The Bears coach said he would make the same call “based on the scenario that was there” if he had it to do all over again. Khalil Herbert was stopped for no gain, the Broncos responded with a 51-yard field goal and won, 31-28 to drop the Bears to 0-4.
A man and a teenage boy were outside in the 1000 block of West Argyle Street when someone approached from an alley and opened fire.
The Blackhawks welcome the No. 1 overall pick in the 2023 NHL Draft into the fold this fall. We provide details on his play, his progress and his promise in Chicago throughout the days leading up to his Oct. 10 debut.
Dorothy Hoffner became the oldest-living person to parachute from a plane on Sunday at Skydive Chicago Airport in Ottawa.