Close

Cart

Total $0.00

Checkout
BETHESDA, Md.--February 6, 2014--RLJ Lodging Trust (NYSE: RLJ) (“RLJ”) and Hyatt Hotels Corporation (NYSE: H) (“Hyatt”) today announced that Hyatt affiliates have entered into a definitive purchase and sale agreement for RLJ to acquire a portfolio of 10 hotels totaling 1,560 rooms (the “Hyatt Portfolio”) consisting of Hyatt, Hyatt Place and Hyatt House hotels. A Hyatt affiliate will continue to manage the hotels under new management agreements.

The Hyatt Portfolio, which is located primarily on the West Coast, is expected to be acquired for a total purchase price of approximately $313 million. RLJ intends to spend approximately $25 million in capital expenditures across the Hyatt Portfolio, the majority of which will be invested over the next 24 months.

“We are excited about expanding our strategic relationship with Hyatt and increasing our presence on the West Coast,” commented Thomas J. Baltimore, Jr., President and Chief Executive Officer of RLJ Lodging Trust. “Once completed, we will have acquired almost $900 million of assets since our IPO. This deal will be immediately accretive to the portfolio and will reinforce our stated goal of becoming the aggregator in this segment.”

“This transaction demonstrates the value from asset recycling. We were able to successfully convert hotels in key markets to Hyatt brands and sell these hotels to a high quality owner while maintaining long term presence in key markets,” said Steve Haggerty, Global Head, Real Estate and Capital Strategy for Hyatt. “We are delighted to deepen our relationship with the team at RLJ Lodging Trust and look forward to future collaboration with them.”

Hyatt is a highly recognized, quality company with significant global presence. The Hyatt Portfolio consists of young, high-performing, and well-situated hotels. The hotels, the majority of which were acquired by Hyatt in 2011, will immediately increase RLJ’s West Coast presence, particularly in California where the company is currently seeking to grow its presence. With the addition of this portfolio, RLJ will more than double its hotel earnings before interest taxes depreciation and amortization (EBITDA) on the West Coast. The remaining hotels are located in dense premier markets with multiple demand generators.

RLJ continues to execute its stated strategy of becoming the leading owner of premier select-service hotels. The Hyatt Portfolio will represent more than 7% of RLJ’s projected 2013 Hotel EBITDA and more than 7% of its total enterprise value. The Hyatt Portfolio is another testament to RLJ’s disciplined approach of acquiring institutional grade hotels in premier markets.

RLJ estimates that the Hyatt Portfolio’s 2013 aggregate RevPAR will be greater than $120, which is more than a 10% premium to RLJ’s projected RevPAR for 2013. Also, more than half of the hotels are expected to be added to RLJ’s top 50 EBITDA contributors.

Details of the hotels are listed below: 

The transaction is expected to be completed in March 2014 and is subject to customary closing conditions. RLJ made a $10 million non-refundable deposit upon execution of the purchase agreement.

RLJ expects to fund the acquisition of the Hyatt Portfolio through a combination of various financial resources available for use, including but not limited to cash on hand, its undrawn revolving credit facility, and debt financing.

With the addition of the Hyatt Portfolio, RLJ is expected to own 160 properties, consisting of 158 hotels with approximately 24,000 rooms and 2 planned hotel conversions, located in 24 states and the District of Columbia. 

About RLJ Lodging Trust

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. For more information, please visit www.rljlodgingtrust.com.

Contact: Leslie D. Hale, Chief Financial Officer

301-280-7774

About Hyatt Hotels Corporation

Hyatt Hotels Corporation, headquartered in Chicago, is a leading global hospitality company with a proud heritage of making guests feel more than welcome. Thousands of members of the Hyatt family strive to make a difference in the lives of the guests they encounter every day by providing authentic hospitality. The Company's subsidiaries manage, franchise, own and develop hotels and resorts under the Hyatt®, Park Hyatt®, Andaz®, Grand Hyatt®, Hyatt Regency®, Hyatt Place®, Hyatt House®, Hyatt ZilaraTMand Hyatt ZivaTM brand names and have locations on six continents. Hyatt Residential Group, Inc., a Hyatt Hotels Corporation subsidiary, develops, operates, markets or licenses Hyatt ResidencesTM and Hyatt Residence ClubTM. As of September 30, 2013, the Company's worldwide portfolio consisted of 535 properties in 47 countries. For more information, please visit www.hyatt.com

Contact: Farley Kern Vice President, Corporate Communications or Atish Shah Senior Vice President, Investor Relations

farley.kern@hyatt.com or atish.shah@hyatt.com / 312-780-5506 or 312-780-5427

Related News

RLJ Lodging Trust Expands Relationship with Interstate Hotels and Resorts

RLJ Lodging Trust Completes Merger with FelCor Lodging Trust

Lotte Tour Development and Hyatt Hotels Enter Agreement for New Build Grand Hyatt Hotel in Jeju City, South Korea

RLJ Shareholders and FelCor Stockholders Approve Merger

RLJ Lodging Trust Sees Net Income Decrease to $21.8 Million in Q1 2017; RevPAR and Occupancy Decreased Slightly for Quarter

Hyatt Hotels Reports Q1 2017 Net Income Increased 104.8% to $70 Million; Comparable Systemwide RevPAR Increased 4.7%

RLJ Lodging Trust and FelCor Lodging Trust Enter Definitive Merger Agreement in an All-Stock Transaction

Hospitality Management Chantilly and Hyatt Enter Agreement for Management of New Hyatt Regency Chantilly

RLJ Lodging Trust Reports Q4 & Full Year 2016 Results: Q4 Net Income Increased 2.0% to $75.8 Million; Pro Forma RevPAR Down 0.3%

Hyatt Acquires Wellness Leader Miraval Group for $215 Million

RLJ Lodging Trust Sells Two Hotels in New York City for $286 Million

Hyatt Reports Net Income of $63 million for Q3 2016, an Increase of 148% Over Q3 2015

RLJ Lodging Trust Reports Q3 2016 Net Income of $41.4 million, Up 1.1% Over Same Period in 2015

RLJ Lodging Trust Reports Q2 2016 Increase in Net Income of 4.1% to $58.7 million; Lowers Outlook for Remainder of 2016

Hyatt Hotels Reports Q2 2016 Net Income of $67 million Compared to $40 million in the Year Ago Quarter

RLJ Lodging Trust Appoints Ross H. Bierkan as President and Chief Executive Officer and Leslie D. Hale as Chief Operating Officer

RLJ Lodging Trust Reports First Quarter 2016 Net Income of $25.3 million, Compared to $47.9 million for Same Year Ago Period

Hyatt Reports First Quarter 2016 Net Income of $34 million Compared to $22 in the Year Ago Quarter; Adjusted EBITDA Increased to $194 million

Thomas J. Baltimore, Jr. Announces His Resignation as President & CEO of RLJ Lodging Trust to Become President & CEO of Hilton's Planned Hotel REIT

RLJ Lodging Trust Reports Fourth Quarter and Full Year 2015 Results; Q4 RevPAR up 2.5% with Net Income of $73.8 million Compared to $33.8 million in Q4 2014

All News »

Please login or register to post a comment.