Inland American Real Estate Trust has plans to spin off its lodging subsidiary into a publicly traded company. The new REIT, to be called Xenia Hotels & Resorts Inc., formerly known as Inland American Lodging Group, will own 46 hotels in 19 states and the District of Columbia and a majority stake in two properties under development.
Xenia will invest primarily in premium full-service, lifestyle and urban upscale hotels in the top 25 U.S. lodging markets and key leisure destinations throughout the United States, with a particular focus on urban and densely populated suburban markets with multiple demand generators and high barriers to entry. The company’s portfolio will include premium brands such as Marriott, Hilton, Hyatt, Starwood, Kimpton, Aston, Fairmont and Loews.
The Xenia spinoff is part of a trend of firms creating REIT spinoffs. In 2013, Gaming and Leisure Properties, a triple-net-lease REIT, was spun out by Penn National