This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

RLJ Lodging Trust Acquires Another Gateway Asset - Hilton Garden Inn San Francisco/Oakland Bay Bridge For $36.2 Million

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.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs