BETHESDA, Md.—RLJ Lodging Trust has sold an additional non-strategic hotel, the 182-room Hilton Mystic in Mystic, Conn., for approximately $14.1 million or $77,200 per key. The sale price represents approximately a 7.4 percent capitalization rate on the hotel’s projected 2014 net operating income, adjusted for approximately $4.5 million of pending capital expenditures.
“We continue to focus on creating value by recycling capital from non-strategic asset sales into higher-yielding acquisitions,” commented Thomas J. Baltimore Jr., president and chief executive officer. “Our capital recycling program remains active. Over the last five months we have sold 14 non-strategic hotels for over $115 million. As we continue to enhance our portfolio, we will remain disciplined in the selection and execution of all asset sales.”
The 2013 revenue per available room for the hotel represents a discount of approximately 18 percent to the company’s reported 2013 pro forma RevPAR. The hotel sale further enhances the company’s growth profile and provides additional capital to be redeployed into coastal and gateway markets that is expected to translate into increased shareholder value.
With the sale of this hotel, RLJ owns 146 properties, consisting of 144 hotels with approximately 22,400 rooms and two planned hotel conversions, located in 21 states and the District of Columbia.