BETHESDA, Md. (July 16, 2018) – RLJ Lodging Trust (the “Company”) (NYSE: RLJ) today announced that the Company has closed on the sale of the 205-room Embassy Suites Napa Valley (“Embassy Suites Napa”) for $102.0 million or approximately $498,000 per key.
“The sale of the Embassy Suites Napa is another example of how we seek to unlock shareholder value through both non-core and opportunistic sales,” commented Ross H. Bierkan, President and Chief Executive Officer. “The premium multiple on this sale is indicative of the strong investor appetite for properties in resort-like locations, which allowed us to capture the embedded redevelopment value in this asset and execute a highly accretive transaction.”
Based on the hotel’s trailing twelve month results as of May 2018, the sale price equates to a 14.6x EBITDA multiple and a 6.1% capitalization rate, excluding planned capital expenditures.
The Company intends to apply the net proceeds from the sale to pay down its credit facility and for general corporate purposes.
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 154 hotels with approximately 30,000 rooms located in 26 states and the District of Columbia and an ownership interest in one unconsolidated hotel with 171 rooms.