Real EstateAcquisitionsRLJ Lodging Trust Sells Additional Hotel for $14.1 Million

RLJ Lodging Trust Sells Additional Hotel for $14.1 Million

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.

RELATED ARTICLES

New Pyramid Global Hospitality COO Continues Focus on Big Data to Benefit Owners

Pyramid Global Hospitality Chief Operating Officer Eric Habermann retired in April following seven years with the company and a nearly 40-year career in hospitality....

Grand Hyatt Kauai Resort & Spa Launches Scholarship Program

Grand Hyatt Kauai Resort & Spa, a 605-room resort, announced the launch of a scholarship program to support the continued education of its colleagues...

Hilton Surpasses 500 Hotels in Florida

MCLEAN, Virginia, and MIAMI, Florida—Hilton announced a major milestone as the company surpassed 500 open hotels across Florida. This growth was fueled in part...

Hunter Hotel Advisors Brokers Sale of Residence Inn Detroit Novi

ATLANTA, Georgia—Hunter Hotel Advisors (Hunter) announced the successful sale of the 107-key Residence Inn Detroit Novi. Spark GHC purchased the property from an institutional...

PMZ Realty Capital Arranges Loan for Hampton Inn Marysville

PMZ Realty Capital LLC announced that it has secured a $5.3 million loan for the Hampton Inn Marysville, located in Marysville, Ohio. The loan...

LivAway Suites Breaks Ground on New Property in Tucson, Arizona

SALT LAKE CITY, Utah—LivAway Suites announced the groundbreaking of its newest property in Tucson, Arizona, which marks its fourth in the state over the...