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Inland American approves hotels spin-off

Inland American Real Estate Trust Inc. has announced its board of directors formally authorized spinning off its lodging subsidiary into a public REIT called Xenia Hotels & Resorts, Inc.

Xenia will own 46 lifestyle and urban hotels. Brands include Hyatt, Hilton and Marriott. Distribution of Xenia common stock is expected to occur on February 3.

“These assets have performed well as part of Inland American’s portfolio, delivering strong cash flows and attractive returns,” Marcel Verbaas, president and CEO of Inland, said in the statement. “As a standalone company, Xenia will have the additional strategic and financial flexibility to continue delivering growth and creating stockholder value.”

Goldman Group, Inc. and Morgan Stanley are acting as financial advisers, Latham & Watkins LLP is acting as legal counsel, and Hunton & Williams LLP is acting as special tax counsel to Inland American.

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