BETHESDA, MD—Following news that Bethesda, MD-based RLJ Lodging Trust netted $202.3 million from a public offering—and that it would use the proceeds for acquisition purposes—the REIT announced two acquisitions on the West Coast for $120 million.
The off-market trades are the 256-room Courtyard Portland City Center in Portland, OR, and the 293-room Embassy Suites Irvine Orange County in Irvine, CA. The properties are trading for approximately $219,000 per key, representing a forward capitalization rate of approximately 7.4% on the hotels' combined projected 2015 net operating income.
In a prepared statement, RLJ president and CEO Thomas Baltimore Jr. highlighted the REIT's ability to source "attractive, off-market opportunities."
"Both assets benefit from prime central locations, strong brand affiliations, and strong operating performance," he said.
He also pointed out that in 2013, both the Portland and Irvine markets both outperformed overall U.S. RevPAR growth, as reported by Smith Travel Research.
The transaction was funded with cash available and its revolving credit facility. The REIT also said it would use proceeds from its recently announced follow-on offering to subsequently repay its revolving credit facility.
RLJ now owns 148 properties, consisting of approximately 23,000 rooms, and two planned hotel conversions located in 21 states and the District of Columbia.
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more inforrmation visit Asset & Logo Licensing.
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.
