RLJ Lodging Trust Announces Sale of Fairmont Copley Plaza Boston for $170 million
December 15 2017 - 9:00AM
Business Wire
RLJ Lodging Trust (the “Company”) (NYSE: RLJ) today announced
that the Company has sold the 383-room Fairmont Copley Plaza in
Boston, MA (the “Boston Copley”) for $170.0 million or
approximately $444,000 per key.
“We are pleased by the execution of the sale of this iconic
asset at a very attractive valuation that is significantly
accretive to our shareholders across a number of metrics. The
disposition of this asset is consistent with our objectives of
selling non-core assets and unlocking shareholder value,”
commented Ross H. Bierkan, President and Chief Executive
Officer. “Our ability to sell this asset shortly after closing the
merger highlights the team’s focus on executing our key priorities
in a disciplined manner. We remain committed to our disposition
strategy, and we look forward to announcing further asset sales as
they materialize.”
The sale price represents approximately a 4.6% capitalization
rate on the hotel’s 2017 projected net operating income. The sale
price, which is accretive to the Company’s implied EBITDA multiple,
represents a hotel EBITDA multiple of approximately 16.5x based on
the hotel’s 2017 projected hotel EBITDA.
Additionally, the sale of this hotel is accretive to the
Company’s hotel EBITDA margin. The 2016 hotel EBITDA margin of this
hotel was almost 50% lower than the newly combined portfolio’s pro
forma average in 2016.
The Company intends to use the net proceeds from the sale for
general corporate purposes, with a focus on paying down debt.
About RLJ
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 157 hotels with approximately 30,800 rooms
located in 26 states and the District of Columbia and an
ownership interest in one unconsolidated hotel with 171 rooms.
Forward Looking
Statements
The following information contains certain statements, other
than purely historical information, including estimates,
projections, statements relating to the Company’s business plans,
objectives and expected operating results, and the assumptions upon
which those statements are based, that are “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995, Section 27A of the Securities Act of 1933,
as amended and Section 21E of the Securities Exchange Act of
1934, as amended. These forward-looking statements generally are
identified by the use of the words “believe,” “project,” “expect,”
“anticipate,” “estimate,” “plan,” “may,” “will,” “will continue,”
“intend,” “should,” “may” or similar expressions. Although the
Company believes that the expectations reflected in such
forward-looking statements are based upon reasonable assumptions,
beliefs and expectations, such forward-looking statements are not
predictions of future events or guarantees of future performance
and the Company’s actual results could differ materially from those
set forth in the forward-looking statements. Some factors that
might cause such a difference include the following: the current
global economic uncertainty, increased direct competition, changes
in government regulations or accounting rules, changes in local,
national and global real estate conditions, declines in the lodging
industry, seasonality of the lodging industry, risks related to
natural disasters, such as earthquakes and hurricanes, hostilities,
including future terrorist attacks or fear of hostilities that
affect travel, the Company’s ability to obtain lines of credit or
permanent financing on satisfactory terms, changes in interest
rates, access to capital through offerings of the Company’s common
and preferred shares of beneficial interest, or debt, the Company’s
ability to identify suitable acquisitions, the Company’s ability to
close on identified acquisitions and integrate those businesses and
inaccuracies of the Company’s accounting estimates. Given these
uncertainties, undue reliance should not be placed on such
statements. Except as required by law, the Company undertakes no
obligation to update or revise publicly any forward-looking
statements, whether as a result of new information, future events
or otherwise. The Company cautions investors not to place undue
reliance on these forward-looking statements and urge investors to
carefully review the disclosures the Company makes concerning risks
and uncertainties in the sections entitled “Risk Factors,”
“Forward-Looking Statements,” and “Management’s Discussion and
Analysis of Financial Condition and Results of Operations” in the
Company’s Annual Report, as well as risks, uncertainties and other
factors discussed in other documents filed by the Company with the
SEC.
For additional information or to receive press
releases via email, please visit our website:
http://rljlodgingtrust.com
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RLJ Lodging TrustLeslie D. Hale,
301-280-7774Chief Operating Officer and Chief Financial
Officer
RLJ Lodging (NYSE:RLJ)
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