BETHESDA, Md.—RLJ Lodging Trust has sold the 150-room Hilton Garden Inn St. George in St. George, Utah, for approximately $15.7 million or $104,300 per key. The sale price represents approximately an 8.7 percent capitalization rate on the hotel’s 2013 net operating income, adjusted for approximately $2.3 million of pending capital expenditures.
“We are pleased by the momentum in our capital recycling program,” commented Thomas J. Baltimore Jr., president and chief executive officer. “The sale of this asset is further evidence of our commitment to recycle capital from non-strategic assets. We plan to reinvest proceeds from the sale of this hotel and our other 12 hotels towards accretive opportunities that increase our presence in higher-growth markets.”
The estimated 2013 revenue per available room for the hotel represents a discount of more than 30 percent to the company’s pro forma RevPAR reported for 2013. The sale of this asset is further accretive to the portfolio and will provide additional capital that will be deployed to further enhance the company’s profile.
With the sale of this asset, the company now owns 137 properties, comprised of 135 hotels with approximately 21,000 rooms and two planned conversions, located in 21 states and the District of Columbia.