(Bloomberg) -- Xenia Hotels & Resorts Inc. is seeking a buyer for seven Kimpton hotels, which could fetch about $500 million, according to people with knowledge of the matter.
Xenia selected Newmark Knight Frank to advise on a potential sale of the portfolio, said the people, who asked not to be named because the matter is private. Management contracts for the assets, which include Kimpton Hotel Monaco properties in Chicago, Denver and Salt Lake City, can be terminated in the event of a sale, one of the people said.
Representatives for Xenia didn't immediately respond to requests for comment.
U.S. hotels have been sluggish performers in recent months, as slowing economic growth and diminished pricing power weigh on revenue per available room, a key hotel industry metric. Despite those headwinds, attractive debt financing and strong demand from private investors have supported asset values, according to a recent report from Green Street Advisors.
Xenia, based in Orlando, owns 40 hotels across the luxury and upper upscale categories. Its shares have increased 19% this year, compared with a 3.5% gain for the Bloomberg REIT Hotels Index.
To contact the reporters on this story: Patrick Clark in New York at pclark55@bloomberg.net;Gillian Tan in New York at gtan129@bloomberg.net
To contact the editors responsible for this story: Rob Urban at robprag@bloomberg.net, Christine Maurus
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