RLJ Lodging Trust (the “Company”) (NYSE: RLJ) today announced that the
Company has sold an additional hotel. The Company sold the 194-room
Holiday Inn Austin NW Arboretum Area (the “Hotel”) in Austin, Texas for
approximately $13.5 million, or $70,000 per key. The sale price
represents approximately a 7.9% capitalization rate on the Hotel’s 2014
net operating income, fully loaded for pending capital expenditures.
“We are very pleased to close on the sale of an additional non-strategic
asset. To date, we have sold 15 assets for gross proceeds of more than
$130 million,” commented Thomas J. Baltimore, Jr., President and Chief
Executive Officer. “As we pursue additional dispositions, we are very
encouraged by the interest we are seeing for our assets and an improving
lending environment. We remain committed to further recycling capital
into assets that improve our portfolio quality.”
The sale of this Hotel is part of the Company’s overall aggressive
capital recycling strategy to enhance its portfolio through the
disposition of assets that are not in line with the Company’s overall
long-term investment thesis.
The Hotel was initially purchased by the Company in 2006 as part of a
100 hotel portfolio. The Hotel, which was built in 1984 and is located
in the outlying suburbs of Austin, had a 2013 revenue per available room
(“RevPAR”) that represents a discount of more than 27.0% to the
Company’s pro forma RevPAR reported for 2013.
With the sale of this asset, the Company owns 147 properties, comprised
of 145 hotels with approximately 22,700 rooms and two planned
conversions, located in 21 states and the District of Columbia.
About Us
RLJ Lodging Trust is a self-advised, publicly traded real estate
investment trust focused on acquiring premium-branded, focused-service
and compact full-service hotels.
Forward Looking Statements
The following information contains certain statements, other than purely
historical information, including estimates, projections, statements
relating to the Company’s business plans, objectives and expected
operating results, and the assumptions upon which those statements are
based, that are “forward-looking statements” within the meaning of the
Private Securities Litigation Reform Act of 1995, Section 27A of the
Securities Act of 1933, as amended and Section 21E of the Securities
Exchange Act of 1934, as amended. These forward-looking statements
generally are identified by the use of the words “believe,” “project,”
“expect,” “anticipate,” “estimate,” “plan,” “may,” “will,” “will
continue,” “intend,” “should,” “may” or similar expressions. Although
the Company believes that the expectations reflected in such
forward-looking statements are based upon reasonable assumptions,
beliefs and expectations, such forward-looking statements are not
predictions of future events or guarantees of future performance and the
Company’s actual results could differ materially from those set forth in
the forward-looking statements. Some factors that might cause such a
difference include the following: the current global economic
uncertainty, increased direct competition, changes in government
regulations or accounting rules, changes in local, national and global
real estate conditions, declines in the lodging industry, seasonality of
the lodging industry, risks related to natural disasters, such as
earthquakes and hurricanes, hostilities, including future terrorist
attacks or fear of hostilities that affect travel, the Company’s ability
to obtain lines of credit or permanent financing on satisfactory terms,
changes in interest rates, access to capital through offerings of the
Company’s common and preferred shares of beneficial interest, or debt,
the Company’s ability to identify suitable acquisitions, the Company’s
ability to close on identified acquisitions and integrate those
businesses and inaccuracies of the Company’s accounting estimates. Given
these uncertainties, undue reliance should not be placed on such
statements. Except as required by law, the Company undertakes no
obligation to update or revise publicly any forward-looking statements,
whether as a result of new information, future events or otherwise. The
Company cautions investors not to place undue reliance on these
forward-looking statements and urge investors to carefully review the
disclosures the Company makes concerning risks and uncertainties in the
sections entitled “Risk Factors,” “Forward-Looking Statements,” and
“Management’s Discussion and Analysis of Financial Condition and Results
of Operations” in the Company’s Annual Report, as well as risks,
uncertainties and other factors discussed in other documents filed by
the Company with the SEC.
For additional information or to receive press releases via email,
please visit our website: http://rljlodgingtrust.com
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