BETHESDA, MD-RLJ Lodging Trust has secured $284.8 million from a public offering in which it sold 13.8 million common shares at a price of $21.60 per unit. The offering was upsized from an original 11.5 million shares.
The REIT also granted the underwriters a 30-day option to purchase an additional 2,070,000 common shares. The offering is expected to close on or about March 25.
The REIT plans to use the net proceeds to fund potential acquisitions and for general corporate purposes. It may also the proceeds to repay its unsecured revolving credit facility.
On the same day it announced its funding, the REIT also announced it had acquired two premium-branded hotels and one planned hotel conversion in Downtown Houston for $79.5 million, or approximately $151,000 per key based on a room count of 528 keys. It was an off-market trade.
In November 2012, it entered the Boston market with another off-market deal -- the 275-room Embassy Suites Boston/Waltham, for $64.5 million, or approximately $235,000 per key. The REIT purchased this asset with cash available on its balance sheet.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
