X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

(To read more on the debt and equity markets, click here.)

BETHESDA, MD-Privately held RLJ Development, LLC has just closed its second private equity lodging fund with $743 million of commitments. The RLJ Lodging Fund II LP, also dubbed RLJ Fund II, has a total purchasing power of nearly $2.5 billion.

The RLJ Fund II, though, has been active investor even as RLJ Development continued to raise capital for the fund, acquiring a $1.7-billion, 100-hotel portfolio from Merrillville, IN-based White Lodging Services Corp. earlier this year. The deal was structured to close in three phases. They closed on a $1-billion leg in mid-June and sealed a $390-million transaction in early August. The remaining 13 hotels, for $300 million, are scheduled to close in one to 18 months.

Investors in RLJ Fund II include several major public and corporate pension funds, financial institutions and a hospitality entity, numbering 15 institutional investors all together, according to a company statement. RLJ Development was represented by Presidio Partners, a real estate investment bank with offices in San Francisco and Chicago.

RLJ Fund II’s strategy is acquire and develop premium-branded, upscale service hotels in urban and suburban major metro areas. “Our goal is to achieve superior risk-adjusted returns for our investors with a highly focused investment strategy,” Thomas J. Baltimore Jr., president of RLJ, says in a press release. “The lodging sector remains a very attractive industry with accelerating demand and limited supply growth expected in the next few years.” RLJ was unable to be reached for comment by deadline.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt
Live Chat

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.