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Hyatt to bid for Xenia's US$500m Kimpton portfolio
[NEW YORK] Hyatt Hotels Corp has emerged as a bidder for a portfolio of Kimpton hotels owned by Xenia Hotels & Resorts Inc, according to people with knowledge of the matter.
Xenia has received multiple offers for the portfolio, which could fetch about US$500 million, said one of the people who requested anonymity because the matter is private.
"We continue to evaluate opportunities to invest in the growth of our business while maintaining our commitment to reduce our portfolio of owned real estate," Hyatt spokeswoman Franziska Weber said in an emailed statement. She said the company's policy is not to comment on potential transactions. A representative for Xenia didn't respond to a request for comment.
Management contracts for the portfolio, which includes Kimpton Hotel Monaco properties in Chicago, Denver and Salt Lake City, can be terminated in the event of a sale, Bloomberg reported last month. Hyatt operates brands including Alila, Caption, Andaz, Destination, Joie de Vivre and Thompson.
Xenia, based in Orlando, owns hotels across the luxury and upper-upscale categories. Its shares have gained 22 per cent this year, compared with a roughly 5 per cent gain for the Bloomberg REIT Hotels Index over the same period.