RLH Corporation has closed on the sale of its Red Lion Airport Hotel Atlanta for $12.25 million in gross proceeds. The Red Lion Airport Hotel Atlanta was held in a joint venture. RLH Corporation will receive $4.8 million in net proceeds after closing costs and the repayment of property level mortgage. Net proceeds to RLH will be primarily used to reduce corporate level debt. There are an additional three hotels that are under non-binding contract to be sold. The company expects that these hotel sales will be completed by the end of Q1 2020.
Here are more notable hotel acquisition announcements from this past week:
On Monday, Blackstone Real Estate Income Trust and MGM Resorts International announced the closing of the previously announced BREIT-led joint venture with MGM Resorts to acquire the Bellagio Las Vegas for $4.25 billion in a sale-leaseback transaction. As part of the transaction, MGM Resorts has leased the property from the joint venture and continues to manage, operate, and be responsible for all aspects of the property on a day-to-day basis.
AJ Capital Partners acquired The Homestead in Evanston, Illinois, with plans to renovate the eight-story, 91-key independent hotel beginning in early 2020. Once completed in fall 2020, the hotel will debut as part of the Graduate Hotels collection. The building originally opened in 1927 and is on the National Register of Historic Places. Set to be architecturally designed by Chicago-based DMAC Architecture, with interior design handled by the Graduate Hotels in-house team, the hotel will include a new restaurant and café concept.
