Tuesday June 24th, 2014 - 9:44AM
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.