The Ritz-Carlton Pentagon City in Arlington, Virginia has been sold for $105 million to Xenia Hotels & Resorts. The 18 story 365 room property features 19,000 square feet of meeting space, and has recently under gone an $11 million renovation of its guestrooms and club lounge. The asset is part of the Fashion Centre at Pentagon City, a mixed use facility containing approximately 870,000 sqf of retail and restaurant space, as well as an 170,000 sqf office tower. The mall features 170 retailers and recently underwent a $90 million renovation and 52,000 square foot expansion. 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 Chief Executive Officer 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.”
