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RLJ Lodging Trust Enters the Boston Market – Acquires the Embassy Suites Boston/Waltham

BETHESDA, Md.--(BUSINESS WIRE)--Nov. 15, 2012-- RLJ Lodging Trust (the “Company”) (NYSE: RLJ) today announced that it acquired the 275-room Embassy Suites Boston/Waltham (the “Hotel”), through an off-market transaction, for a purchase price of $64.5 million, or approximately $235,000 per key. The purchase price represents a forward capitalization rate of approximately 7.9% on the hotel's projected 2013 net operating income. The Company purchased this asset with cash available on its balance sheet.

“We are excited to enter the Boston market, one of the strongest performing RevPAR hotel markets in the country,” commented Thomas J. Baltimore, Jr., President and Chief Executive Officer. “This hotel’s recent conversion to an Embassy Suites has positioned this centrally-located asset for exceptional growth.”

The Hotel went through an extensive $12-million brand conversion from a DoubleTree Guest Suites to an Embassy Suites in 2011, one of only three Embassy Suites in the greater Boston area. During the conversion, the guest suites and the public spaces were also significantly upgraded.

The strength of this newly upgraded hotel in Boston’s premier Waltham submarket is evident by the impressive performance it has generated in 2012. With more than 37% RevPAR growth already generated through September, the Company expects that this hotel will continue to produce outsized returns due to its recent brand conversion and its prime location within this excellent market.

The Hotel’s prime location in Boston’s submarket of Waltham, provides the Hotel with a wide variety of demand generators. Waltham’s economy is heavily concentrated in education and high tech and is recognized as a central hub for national and international biotech, technology, and information system companies, such as Raytheon, IBM, Novell, and Verizon. With more than 15 million square feet of office space in this Boston submarket, the Hotel benefits from strong corporate demand. The property itself is proximate to multiple corporate office parks and two universities. Additionally, the Hotel’s all-suite product is an attractive option to the more than 18 million leisure travelers that visit the greater Boston area annually.

The acquisition of this premium-branded hotel is compliant with the Company’s overall investment thesis. With the addition of this new hotel, the Company now owns 145 hotels with more than 21,600 rooms across 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. Additional information may be found on the Company’s website at

Forward Looking Statements

This press release may contain forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” or “potential” or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events or trends and which do not relate solely to historical matters. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and contingencies, many of which are beyond the Company’s control, that may cause actual results to differ significantly from those expressed in any forward-looking statement, including statements related to, among other things, the timing, price or amount of purchases, if any, under the Company's common stock repurchase program, the Company’s target leverage ratio, potential acquisitions or dispositions, the completion of the 2012 capital improvement plan, RevPAR growth, EBITDA growth, Hotel EBITDA margins or cash G&A expenses. All forward-looking statements reflect the Company’s good faith beliefs, assumptions and expectations, but they are not guarantees of future performance. Furthermore, the Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes. For a further discussion of these and other factors that could cause the Company’s future results to differ materially from any forward-looking statements, see the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Results of Operations and Financial Condition” in the Company's Annual report on Form 10-K for the year ended December 31, 2011, and other risks described in documents subsequently filed by the Company from time to time with the Securities and Exchange Commission.

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Source: RLJ Lodging Trust

RLJ Lodging Trust
Leslie D. Hale, 301-280-7707
Chief Financial Officer