BETHESDA, Md.--(BUSINESS WIRE)--Jun. 11, 2012--
RLJ Lodging Trust (the “Company”) (NYSE: RLJ) today announced that it
acquired the 278-room Hilton Garden Inn San Francisco Oakland/Bay Bridge
for a purchase price of $36.2 million, or approximately $130,000 per
key. The purchase price represents a forward capitalization rate of
approximately 9.4% on the hotel's projected 2013 net operating income.
The Company’s purchase price is considerably lower than other recently
traded hotels in the area and is at a significant discount to
replacement cost.
“We are excited to enter the San Francisco Bay Area market, which has
been one of the top performing markets in the country in terms of RevPAR
growth. The Bay Area is highly recognized as a technology, financial,
biotech and venture capitalist hub as well as a major tourist and
convention destination,” commented Thomas J. Baltimore, Jr., President
and Chief Executive Officer. “Including this acquisition, we have now
completed three acquisitions totaling $182.7 million in key gateway
markets over the last 30 days.”
Located in the City of Emeryville, the hotel benefits from strong
corporate demand generated by more than 113.0 million square feet of
office space in the East Bay/Oakland office market. Additionally, the
hotel benefits from its proximity to the University of California
Berkeley, a world renowned university and the third largest employer in
the Bay Area.
The hotel’s unique location between San Francisco and Oakland allows it
to capture demand driven by citywide groups in both cities and also
provides travelers the option of two international airports. As a Hilton
Garden Inn brand, the hotel benefits from demand generated by Hilton’s
strong reservation system and guest loyalty program.
The acquisition was funded through cash available on the Company’s
balance sheet. An updated Pro forma RevPAR and Pro forma Consolidated
Hotel EBITDA outlook will be provided in the Company’s upcoming second
quarter earnings press release.
With the addition of the new hotel, the Company now owns 144 hotels that
span across 20 states and the District of Columbia, with more than
21,300 rooms.
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, Chief Financial
Officer, 301-280-7707
