BETHESDA, MD—RLJ Lodging has sold 24 hotels for $240 million, announcing the transaction on the eve of its earnings release, which is scheduled for Wednesday, Feb. 25.

The hotels traded at a 7.9% cap rate on the properties' 2014 net operating income, including planned capital expenditures. They are located in Texas, Florida, Colorado, Minneapolis and Indiana.

The 2,924-key sale is part of a larger capital recycling strategy that has been unfolding for the last 16 months. All told, the REIT has sold 39 hotels for $370 million during that time period. In the process its overall portfolio metrics have improved and it has been able to invest in higher-growth markets, according to president and CEO Thomas J. Baltimore, Jr. This particular transaction, for example, has saved RLJ approximately $65 million in pending capital expenditures.

Besides their capital requirements, the 24 hotels, initially acquired as part of a large portfolio transaction in 2006, were also selected due to their operating performance and locations.

The 2014 revenue per available room of the hotels was approximately $72, representing a 40% discount to the portfolio average. In aggregate, the hotels EBITDA was 7% of RJL's 2014 hotel EBITDA.

The REIT will use the net proceeds to fund future acquisitions or for general corporate purposes. It now owns 126 properties, consisting of 124 hotels with more than 20,400 rooms and two planned hotel conversions.

RLJ will be reporting its fourth quarter 2014 earnings on Wednesday. Several analysts are positive about the REIT's prospects, placing it in the buy category. Barclays raised its price target on RLJ Lodging Trust's stock and move it to the overweight category.