BETHESDA, MD. — RLJ Lodging Trust (NYSE: RLJ) expanded its portfolio of properties with the acquisition of two hotels in New York City and Bethesda for a combined total of $146.5 million. The Bethesda-based company purchased the 226-room Courtyard New York Manhattan Upper East Side in a bankruptcy court sale for $82 million, or approximately $363,000 per room. The purchase price represents a forward capitalization rate of approximately 7.5 percent on the hotel's projected 2013 net operating income.
RLJ paid $64.5 million for the second property, the Residence Inn by Marriott Bethesda Hotel Downtown, in an off-market transaction. The hotel is located in the Bethesda central business district.
“We were able to leverage our extensive network and strong industry relationships to source and execute accretive transactions in key gateway cities,” said Thomas Baltimore Jr., president and CEO of RLJ Lodging Trust. “We expect these two new additions to yield strong results and strengthen our overall portfolio.”
In a statement, the company said the acquisitions were compliant with its overall investment strategy. The hotels are located in key gateway markets and exhibit signs of high growth and high barriers to entry, RLJ stated.
RLJ now owns 143 hotels and more than 21,000 rooms in 20 states and the District of Columbia.
— Liz Burlingame