WASHINGTON, DC—The sale earlier this month of the 164-room Hyatt Place DC/Downtown/K Street set a high-water mark for select-service hotels at $415,000 per key. Just as interestingly, this was a deal that the buyer sought.

To recap, RLJ Lodging Trust acquired the Hyatt Place DC and is closing on another hotel in a Seattle, WA submarket. The total purchase price, which the REIT is paying in cash, is $105.9 million. The REIT sourced both transactions off market.

Songy Highroads purchased the 11-story, 91,000-square-foot former office building in 2013 and converted it into a hotel. Among its amenities, the hotel features the 24-hour Gallery Restaurant, a 24-hour fitness center, and a custom-built, rooftop event space.

The hotel opened in late April. Since the start it has experienced strong demand from corporate and convention visitors.

RLJ approached Songy unexpectedly with an offer, CEO David Songy said. At that point, "we considered it an optimum time to realize a premium return on our investment." One consideration, he said, is that RLJ knows the DC market well.

Aimbridge Hospitality has been the hotel's operator and it will continue to remain so.

Songy Highroads will continue to look at hotel and office investment opportunities in the Washington, DC market as well as the Sunbelt, Songy adds.

Instant Insights /

How the Hyatt Place Deal Happened

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