Xenia Hotels & Resorts has acquired Fairmont Pittsburgh, a 185-room luxury hotel located in Pittsburgh for $30 million, or approximately $162,000 per key. Xenia currently forecasts the hotel will generate approximately $0.9 million of Hotel EBITDA during the remainder of 2018.
“We are excited to acquire Fairmont Pittsburgh, the leading luxury hotel and RevPAR market leader in Pittsburgh, a market that has become one of the most dynamic regional economies in the country,” said Marcel Verbaas, chairman and CEO of Xenia. “The acquisition of this unique asset, at a price per key significantly below replacement cost and an attractive EBITDA multiple, will contribute to the ongoing enhancement of the quality of our portfolio and further diversify our portfolio location and asset mix. While the hotel is in good physical condition, we believe we will be able to drive earnings growth as we integrate the hotel into our platform and further enhance the property’s position as the premier luxury hotel in the market.”
Fairmont Pittsburgh features 185 rooms, 12,000 square feet of meeting space, a 6,000-square-foot health club and spa, and a newly renovated bar and restaurant. Built in 2010, the LEED Gold Certified Property has consistently been ranked as the best hotel in Pittsburgh by US News & World Report.
The hotel is strategically located in the center of Downtown Pittsburgh, in close proximity to five Fortune 500 company headquarters, 23 million square feet of class A office space, three venues home to Pittsburgh’s professional football, baseball, and hockey teams, and internationally renowned museums and theaters. The hotel is part of Three PNC Plaza, a mixed-use building that contains four separate and complementary uses, including a 330-space below-ground parking garage, a 305,000-square-foot office component, 28 residential condominiums and Fairmont Pittsburgh.
The hotel’s strong operating performance will be accretive to the overall Xenia portfolio, with RevPAR of $194.72 during the trailing 12 months ending July 31, 2018. Fairmont Pittsburgh becomes the 40th hotel in Xenia’s high-quality portfolio of luxury and upper upscale hotels and the company’s second Fairmont hotel.
Fairmont Hotels & Resorts has more than 70 hotels globally, with several more in development. It is owned by AccorHotels, a travel and lifestyle group offering unique experiences in more than 4,300 hotels, resorts and residences around the globe.
