RLJ Sells 11-Hotel Portfolio for $85M

BETHESDA, MD-On the heels of its purchase of a 10-asset hotel portfolio from Hyatt Hotels Corp. for $313 million, locally-based RLJ Lodging Trust has closed on the sale of a portfolio of 11 hotels for approximately $85 million. The assets are all non-core and part of the REIT’s capital recycling program, CEO Thomas J. Baltimore, Jr. says in a prepared statement. “The sale of these assets are immediately accretive to our portfolio’s RevPAR and the net proceeds will be reinvested into higher-yielding hotels, such as our recently announced Hyatt deal.”

The sale price represents a 7.9% capitalization rate on the portfolio’s estimated 2013 net operating income, adjusted for approximately $23 million of pending capital expenditures.