An Orlando-based real estate investment trust (REIT) has acquired the Ritz-Carlton hotel in downtown Denver for $100 million.
Xenia Hotels & Resorts (NYSE: XHR) purchased the 14-story, 202-room hotel that also includes 13,000 square feet of meeting space, The Ritz-Carlton Spa, and Elway’s Restaurant.
The hotel is part of the larger Denver Place, which also houses 25 luxury residential units and 193 apartments. Denver Place is the fourth-largest office building in Denver at 891,505 square feet, according to Denver Business Journal research.
Residences XXV penthouse
A look at the luxury penthouse above the Ritz-Carlton in Denver that is up for auction.
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The property is one of the few true luxury offerings in the city, according to Marcel Verbaas, Chairman and Chief Executive Officer of Xenia.
"With the hotel having received approximately $60,000 per key in capital expenditures over the past few years, The Ritz-Carlton, Denver is positioned particularly well to benefit from the many demand drivers in the downtown Denver market," he said.
Xenia predicts the hotel will generate about $2.5 million of hotel earnings before interest, taxes, depreciation and amortization (EBITDA) in the remainder of the year.
The hotel completed extensive renovations of its guest rooms, dining areas, spa, meeting space and lobby in 2017.
It was sold by TW Mezz Denver Hotel LLC, a subsidiary of Transwestern Mezzanine Realty Partners III LLC, who purchased the property in 2010.
Xenia Hotels & Resorts also owns two other properties in Colorado: Hotel Monaco in Denver and Residence Inn Denver City Center, according to the company’s website. They were both acquired in 2013.
The company sold the 148-room Hampton Inn & Suites Denver Downtown in 2016.
2018 Largest Denver-Area Hotels
Ranked by No. of guest rooms
Rank Business name No. of guest rooms 1 Sheraton Denver Downtown Hotel 1,231 2 Hyatt Regency Denver at Colorado Convention Center 1,100 3 Hilton Denver City Center 613 View This List
The 14-story luxury hotel in downtown Denver has 202 rooms, 13,000 square feet of meeting space, The Ritz-Carlton Spa, and Elway’s Restaurant.