ARLINGTON, Va./WASHINGTON, D.C.
Xenia Hotels & Resorts acquired The Ritz-Carlton Pentagon City, a 365-room hotel located in Arlington, Va., for a purchase price of $105 million, or approximately $287,670 per key. The acquisition was funded with cash available on the company's balance sheet and its senior unsecured credit facility.
"We are pleased to add The Ritz-Carlton Pentagon City to our portfolio of high-quality hotels and resorts as we continue to increase our concentration in the luxury and upper upscale segments through the acquisition of our first Ritz-Carlton," said Marcel Verbaas, President and CEO of Xenia. "The hotel's excellent location and exposure to a diverse set of demand generators in the Arlington and Washington D.C. markets, its strong in-place cash flow, and our ability to acquire the hotel at an attractive valuation were key considerations in our decision to acquire this outstanding asset. We look forward to expanding our long-standing relationship with Marriott."
The 18-story luxury hotel features 365 rooms and 19,000 square feet of meeting space, and has recently completed an $11 million renovation of its guest rooms and club lounge. The hotel is said to be uniquely positioned within the market, as it is directly connected to The Fashion Centre at Pentagon City. The mixed-use facility contains approximately 870,000 square feet of retail and restaurant space.
The hotel is located proximate to the Pentagon, Crystal City and Rosslyn business districts, as well as Old Town Alexandria and Washington D.C. The property is the closest hotel to The Pentagon and is the only luxury hotel in the high-end Arlington, Va., market. Arlington is one of the top performing submarkets in the D.C. Metro area due to its proximity to major government institutions, with over 40 million square feet of office space, various leisure demand generators and access to Ronald Reagan National Airport.