“We are pleased by the execution of the sale of this iconic asset at a very attractive valuation that is significantly accretive to our shareholders across a number of metrics. The disposition of this asset is consistent with our objectives of selling non-core assets and unlocking shareholder value,” commented Ross H. Bierkan, President and Chief Executive Officer. “Our ability to sell this asset shortly after closing the merger highlights the team’s focus on executing our key priorities in a disciplined manner. We remain committed to our disposition strategy, and we look forward to announcing further asset sales as they materialize.”
The sale price represents approximately a 4.6% capitalization rate on the hotel’s 2017 projected net operating income. The sale price, which is accretive to the Company’s implied EBITDA multiple, represents a hotel EBITDA multiple of approximately 16.5x based on the hotel’s 2017 projected hotel EBITDA.
Additionally, the sale of this hotel is accretive to the Company’s hotel EBITDA margin. The 2016 hotel EBITDA margin of this hotel was almost 50% lower than the newly combined portfolio’s pro forma average in 2016.
The Company intends to use the net proceeds from the sale for general corporate purposes, with a focus on paying down debt.
About RLJ
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. The Company’s portfolio consists of 157 hotels with approximately 30,800 rooms located in 26 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,” “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
For additional information or to receive press releases via email, please visit our website: http://rljlodgingtrust.com
View source version on businesswire.com: http://www.businesswire.com/news/home/20171215005371/en/
Source:
RLJ Lodging Trust
Leslie D. Hale, 301-280-7774
Chief
Operating Officer and Chief Financial Officer