RLJ Lodging Trust (NYSE: RLJ) last week announced that the Company has sold an additional hotel. The Company sold the 194-room Holiday Inn Austin NW Arboretum Area in Austin, Texas for approximately $13.5 million, or $70,000 per key. The sale price represents approximately a 7.9% capitalization rate on the Hotel’s 2014 net operating income, fully loaded for pending capital expenditures.
“We are very pleased to close on the sale of an additional non-strategic asset. To date, we have sold 15 assets for gross proceeds of more than $130 million,” commented Thomas J. Baltimore, Jr., President and Chief Executive Officer. “As we pursue additional dispositions, we are very encouraged by the interest we are seeing for our assets and an improving lending environment. We remain committed to further recycling capital into assets that improve our portfolio quality.”
The sale of this Hotel is part of the Company’s overall aggressive capital recycling strategy to enhance its portfolio through the disposition of assets that are not in line with the Company’s overall long-term investment thesis.
The Hotel was initially purchased by the Company in 2006 as part of a 100 hotel portfolio. The Hotel, which was built in 1984 and is located in the outlying suburbs of Austin, had a 2013 revenue per available room (“RevPAR”) that represents a discount of more than 27.0% to the Company’s pro forma RevPAR reported for 2013.
With the sale of this asset, the Company owns 147 properties, comprised of 145 hotels with approximately 22,700 rooms and two planned conversions, located in 21 states and the District of Columbia.
RLJ Lodging Trust is a self-advised, publicly traded real estate investment trust focused on acquiring premium-branded, focused-service and compact full-service hotels.
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