A billion dollar hotel portfolio has traded hands. On Wednesday, RLJ Lodging Fund II formally acquired a 63-hotel portfolio for roughly $1 billion. Once the entire deal is closed over the next few months, RLJ will own additional hotels that will boost the entire portfolio value up to $1.7 billion. The seller is White Lodging Services Corporation and its affiliates.

The Marriott- and Hilton-branded hotels will continue to be operated under those flags and managed by White Lodging. The consummated deal will transform RLJ Development into one of the largest Marriott franchisees in the U.S.

“We are pleased to complete the first closing of 63 assets on schedule and look forward to closing the next 24 hotels in 30 days,” says Thomas Baltimore Jr., president of RLJ. “[This] acquisition is consistent with our strategy to invest in upscale, focused service hotels with premium brands in desirable markets.”