BETHESDA, MD—RLJ Lodging Trust has acquired two West Coast hotels, the 256-room Courtyard Portland City Center in Portland, OR, and the 293-room Embassy Suites Irvine Orange County in Irvine, CA, in an off-market transaction.
The combined purchase price is $120.0 million. The purchase price represents a forward capitalization rate of approximately 7.4% on the hotels’ combined projected 2015 net operating income. The hotels’ 2013 aggregate revenue per available room is greater than $116, which is approximately a 10% premium to RLJ’s reported 2013 RevPAR.
The transaction was funded with cash available on RLJ Lodging Trust’s balance sheet and its revolving credit facility. The company expects to use proceeds from its recently announced follow-on offering to subsequently repay its revolving credit facility.
With the addition of these two hotels, RLJ Lodging Trust now owns 148 properties, consisting of 146 hotels with approximately 23,000 rooms, and two planned hotel conversions located in 21 states and the District of Columbia.