Lodging Trust Closes on Hilton Cabana Miami Beach Acquisition
Tuesday June 24th, 2014 - 9:44AM E
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BETHESDA, MD—RLJ Lodging Trust has closed on the acquisition of the 231-room Hilton Cabana Miami Beach for $71.6 million, or $310,000 per key.
The purchase price represents a forward capitalization rate of approximately 8.5% on the Hilton Cabana Miami Beach’s projected 2015 net operating income.
Thomas J. Baltimore Jr, president and CEO, stated, “We are very excited to close on this new oceanfront hotel in the heart of Miami Beach at a significant discount to replacement cost. This acquisition is another example of our ability to source and underwrite attractive opportunities. We are excited to add this hotel to our portfolio and expect it will further enhance our diversification and growth profile.”
Upon entering into the purchase and sale agreement, RLJ Lodging Trust made a $7.2-million deposit. The remaining balance was funded with cash on the balance sheet.
Tags: RLJ Lodging Trust • Hilton Cabana Miami Beach • Hospitality • Acquisitions •
When you hear all the lodging industry projections for the months and years to come, much of the robust growth is forecast to be the result of the expected influx of travelers from China. In what could only be seen as good news for the industry, that expectation moved a little closer to reality when President Obama signed a visa waiver extension for Chinese travelers earlier this month.