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 http://rljlodgingtrust.com.
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.
For additional information or to receive press releases via email,
please visit our website:
http://rljlodgingtrust.com
Source: RLJ Lodging Trust
RLJ Lodging Trust
Leslie D. Hale, 301-280-7707
Chief
Financial Officer
