Inland American Real Estate Trust, Oak Brook, Illinois, has announced it is spinning off its lodging group into a separate and publicly traded company that as of Monday is called Xenia Hotels & Resorts.
Xenia will become a self-managed real estate investment trust based in Orlando, Florida, with 46 hotels with 12,600 rooms in 19 states. The company also will have a majority interest in two hotels under development.
“Over the past 18 months, Inland American has been implementing its long-term strategy of focusing our portfolio into three asset classes — lodging, multi-tenant retail and student housing,” President Thomas McGuinness said in a statement. “By doing so, we believed we would enhance long-term stockholder value and position Inland American to explore various strategic alternatives designed to provide liquidity events for our stockholders. We believe the potential spin-off is an important and significant step toward achieving these goals.”
Hotel brands under Xenia’s control will include Marriott, Hilton, Hyatt, Starwood, Kimpton, Aston, Fairmont and Loews.
Inland American is also looking to sell its 54 suburban select-service hotels, now overseen by Xenia.
The spinoff is expected to be completed in the next four to eight months. It still needs approval from Inland’s board.