BETHESDA, MD—RLJ Lodging Trust has closed on its $313 million acquisition of 10 Hyatt, Hyatt Place and Hyatt House hotels that it first announced February. It is one of a handful of transactions the local REIT has made in recent months with an eye to recycling its capital and repositioning its portfolio.
The hotels are located largely in California, with three properties in Texas, one in Wisconsin and another in North Carolina. RLJ plans on investing $25 million over the next 24 months on the portfolio. A Hyatt affiliate will continue to manage the hotels under new agreements now that the deal has closed.
When it first announced the deal, RLJ said the acquisition will more than double its hotel earnings before EBITDA on the West Coast and will represent more than 7% of RLJ’s projected 2013 Hotel EBITDA and more than 7% of its total enterprise value. “This deal will be immediately accretive to the portfolio and will reinforce our stated goal of becoming the aggregator in this segment,” says Thomas J. Baltimore, Jr., president and CEO of RLJ Lodging Trust, in a prepared statement.
Shortly after that deal, the REIT announced it sold a portfolio of 11 hotels for approximately $85 million. Located in Colorado, Texas, Indiana and Nevada, these assets were considered non-core by the REIT and their proceeds ripe for reinvestment.
At the start of this month, RLJ Lodging announced it was selling a sole hotel in Utah-the 150-key Hilton Garden Inn St. George for $15.7 million or $104,300 per key.