Press Release

Printer Friendly Version View printer-friendly version
<< Back
RLJ Lodging Trust Announces Successful Refinancings

Reduces borrowing costs and extends maturity dates

BETHESDA, Md.--(BUSINESS WIRE)--Apr. 8, 2019-- RLJ Lodging Trust (the “Company”) (NYSE: RLJ) today announced that it has recently closed on two refinancing transactions, which consist of the following:

  • New $200.0 million five-year floating rate mortgage loan maturing in April 2024 (the “$200 Million Loan”), inclusive of extension options. The $200 Million Loan was originated by Bank of America, N.A.
  • New $96.0 million seven-year floating rate mortgage loan maturing in April 2026 (the “$96 Million Loan”), inclusive of extension options. The $96 Million Loan was originated by PNC Bank, National Association.

The Company utilized proceeds from these refinancing transactions to repay two secured loans, including a $150.0 million secured loan that was scheduled to mature October 2021 (including extensions) and an approximately $140 million secured loan that was scheduled to mature March 2022 (including extensions). The refinancings will reduce the weighted average interest rate spread from LIBOR plus 225 basis points on the repaid loans to LIBOR plus 155 basis points on the new loans. The reduction in the interest rate spread will result in annual interest expense savings of over $2 million. The Company factored the interest expense savings from both of these financing transactions into the prior net interest expense outlook range of $88 million to $90 million.

The $200 Million Loan is secured by seven hotels, bears interest at LIBOR plus 152 basis points, and provides two one-year extensions. The $96 Million Loan is secured by three hotels, bears interest at LIBOR plus 160 basis points, and provides two one-year extensions. Following the completion of these refinancings, the Company’s weighted average maturity was extended to 4.2 years.

“We are very pleased to execute on these transactions that further strengthen our balance sheet by extending our debt maturities and reducing our interest expense,” said Leslie D. Hale, President and Chief Executive Officer. “With a well-laddered maturity profile and low weighted average interest rate on our debt, we remain extremely well positioned to execute on our strategic initiatives.”

About Us

RLJ Lodging Trust is a self-advised, publicly traded real estate investment trust that owns primarily premium-branded, high-margin, focused-service and compact full-service hotels. The Company’s portfolio consists of 150 hotels with approximately 28,600 rooms located in 25 states and the District of Columbia and an ownership interest in one unconsolidated hotel with 171 rooms.

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,” 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 Securities and Exchange Commission.

For additional information or to receive press releases via email, please visit our website:

Source: RLJ Lodging Trust

Sean Mahoney, Executive Vice President and Chief Financial Officer – (301) 280-7774