RLJ Lodging Trust to Acquire for $313 million a 10-Hotel West Coast Portfolio of Hyatt Hotels
February 7, 2014 10:10am
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.
Tags: rlj lodging trust,
Contact: Leslie D. Hale, Chief Financial Officer
Contact: Farley Kern
Vice President, Corporate Communications or Atish Shah
Senior Vice President, Investor Relations
firstname.lastname@example.org or email@example.com /
312-780-5506 or 312-780-5427
RLJ Lodging Trust Announces CEO Succession – Leslie D. Hale to Become President and Chief Executive Officer
RLJ Lodging Trust Sells the Sheraton Philadelphia Society Hill for $95.5 Million or Approximately $262,000 Per Key
PNK Group & Hyatt to Bring New Build Unbound Collection by Hyatt to Hollywood, California
309-Room DoubleTree by Hilton Burlington Vermont Joins DoubleTree Portfolio Following Major Renovation Led by General Manager Tristan Harris
RLJ Lodging Trust Names Ryan Meliker Senior Vice President of Corporate Strategy and Investor Relations
RLJ Lodging Trust Completes Sale of Fairmont Copley Plaza Boston for $170 Million ($444K Per Key)
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
Please login or register to post a comment.