Xenia Hotels & Resorts, Inc. (NYSE: XHR) today announced its acquisition of the former Mandarin Oriental, Atlanta, a 127-room luxury hotel located in the upscale Buckhead area of Atlanta, Georgia, for $53.5 million, or approximately $421,000 per key. The hotel was rebranded as Waldorf Astoria Atlanta Buckhead immediately upon completion of this acquisition. The Company does not anticipate the hotel to materially contribute to the company's EBITDA during the remainder of 2018.
We are thrilled to have acquired this luxury hotel and renew our relationship with Hilton through the rebranding of the asset as Atlanta's first Waldorf Astoria hotel,” said Marcel Verbaas, Chairman and Chief Executive Officer of Xenia. “This transaction further demonstrates our continued efforts to invest in high-quality, uniquely positioned, premium full service and lifestyle hotels in top lodging markets that provide opportunities to drive growth through our best-in-class asset management and project management practices. This iconic hotel, which is located in an outstanding submarket with diverse demand generators and high barriers to entry, becomes the first Waldorf Astoria in our portfolio and our 12th luxury hotel. While the hotel has exhibited strong top line results, achieving RevPAR of $250.29 during the trailing twelve months ending October 31, 2018, we believe this transaction provides an opportunity to unlock significant value as we work with Hilton to optimize performance.”Waldorf Astoria Atlanta Buckhead becomes the 41st hotel in Xenia's high-quality portfolio of luxury and upper upscale hotels and represents the Company's fourth luxury hotel acquisition this year.
The hotel is located in an iconic 42-story mixed-use development and includes 127 rooms averaging 620 square feet, a 15,000 square foot spa, which includes 14 private treatment rooms and a 60-foot climate-controlled indoor pool, approximately 8,300 square feet of meeting and pre-function space, and The Café & Bar, which offers all-day dining.
Simultaneously with the acquisition of the hotel, Xenia also completed the $7 million acquisition of a free-standing restaurant unit that is part of the same mixed-use development. The restaurant, boasting prominent frontage on Peachtree Road, is currently leased and operated as Del Frisco's Grille.
Waldorf Astoria Atlanta Buckhead is located in Buckhead, Atlanta's most prominent and affluent submarket. The hotel benefits from its prime location in a dynamic financial, shopping, entertainment, and dining district, with access to numerous amenities within a close walkable radius, including approximately 14 million square feet of Class A office space, over 3,000 residential units, and high-end retail including Lenox Square, The Shops Around Lenox, The Shops Buckhead Atlanta and Phipps Plaza.