RLJ Lodging Trust acquired two focused-service hotels, the 226-room Courtyard New York Manhattan/Upper East Side and the 187-room Residence Inn by Marriott Bethesda Hotel Downtown, for a combined total of $146.5 million.
“We were able to leverage our extensive network and strong industry relationships to source and execute accretive transactions in key gateway cities,” RLJ President and CEO Thomas J. Baltimore said in a statement. “We expect these two new additions to yield strong results and strengthen our overall portfolio.”
The company acquired the Courtyard New York Manhattan/Upper East Side through a bankruptcy court-ordered sale for a purchase price of $82.0 million, or approximately $363,000 per key. The purchase price represents a forward capitalization rate of approximately 7.5 percent on the hotel’s projected 2013 net operating income.
RLJ acquired the Residence Inn by Marriott Bethesda Hotel Downtown in an off-market transaction for a purchase price of $64.5 million, or approximately $345,000 per key. The purchase price represents a forward capitalization rate of approximately 7.1 percent on the hotel’s projected 2013 net operating income.
The acquisitions were funded through a combination of cash available on the company’s balance sheet and proceeds from its credit facility.
With the addition of these two hotels, the company now owns 143 hotels and more than 21,000 rooms in 20 states and the District of Columbia.