Fairmont Dallas Hotel has been sold

Xenia Hotels & Resorts has completed the sale of the Fairmont Dallas Hotel, a prominent landmark in the city’s Arts District, for $111 million. The transaction, finalized on April 11, 2025, marks the end of Xenia’s ownership of the 545-room property, which has been a cornerstone of Dallas’ hospitality scene since its opening in 1969. The buyer, whose identity has not been disclosed, now takes the reins of this iconic property. A Garrison Brothers Whiskey Dinner at Fairmont Dallas slated for later this week has now been postponed to June 11.

The Fairmont Dallas, acquired by Xenia in 2011 for $69 million, has long been celebrated for its proximity to downtown attractions and its role in hosting countless events. Yet, despite its storied history, Xenia’s decision to sell the property reflects strategic considerations. The hotel faced substantial near-term capital investment needs—estimated at $80 million—to maintain its competitive edge. These challenges, coupled with the forthcoming redevelopment of the Dallas Convention Center, led Xenia to reevaluate its involvement in the property.

During Xenia’s tenure, the hotel delivered strong financial returns, including an 11.3% unlevered internal rate of return (IRR), even amidst disruptions caused by the COVID-19 pandemic. However, its historical revenue per available room (RevPAR) and EBITDA per key underperformed compared to Xenia’s portfolio averages, prompting the company to refocus its priorities.

The sale aligns with Xenia’s broader strategy to optimize its portfolio and maintain financial flexibility. By divesting the Fairmont Dallas, Xenia avoids the significant investments required for renovations, while bolstering its balance sheet to pursue new opportunities. Proceeds from the sale will be allocated for corporate purposes, including potential acquisitions and share repurchases.