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Wednesday, April 23, 2014
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RLG Lodging Trust Intends to Expand West Coast Presence with a $313 million

08/02/2014 17:36 (73 Day 18:11 minutes ago)

The FINANCIAL -- Hyatt affiliates have entered into a definitive purchase and sale agreement for RLJ to acquire a portfolio of 10 hotels totaling 1,560 rooms consisting of Hyatt, Hyatt Place and Hyatt House hotels . A Hyatt affiliate will continue to manage the hotels under new management agreements, according to Hyatt hotels Corporation.

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The Hyatt Portfolio, which is located primarily on the West Coast, is expected to be acquired for a total purchase price of approximately $313 million. RLJ intends to spend approximately $25 million in capital expenditures across the Hyatt Portfolio, the majority of which will be invested over the next 24 months.

“We are excited about expanding our strategic relationship with Hyatt and increasing our presence on the West Coast,” said Thomas J. Baltimore, Jr., President and Chief Executive Officer of RLJ Lodging Trust. “Once completed, we will have acquired almost $900 million of assets since our IPO. This deal will be immediately accretive to the portfolio and will reinforce our stated goal of becoming the aggregator in this segment,” he added.

“This transaction demonstrates the value from asset recycling. We were able to successfully convert hotels in key markets to Hyatt brands and sell these hotels to a high quality owner while maintaining long term presence in key markets,” said Steve Haggerty, Global Head, Real Estate and Capital Strategy for Hyatt. “We are delighted to deepen our relationship with the team at RLJ Lodging Trust and look forward to future collaboration with them,” he added.

Hyatt is a highly recognized, quality company with significant global presence. The Hyatt Portfolio consists of young, high-performing, and well-situated hotels . The hotels , the majority of which were acquired by Hyatt in 2011, will immediately increase RLJ’s West Coast presence, particularly in California where the company is currently seeking to grow its presence. With the addition of this portfolio, RLJ will more than double its hotel earnings before interest taxes depreciation and amortization (EBITDA) on the West Coast.  The remaining hotels are located in dense premier markets with multiple demand generators.

RLJ continues to execute its stated strategy of becoming the leading owner of premier select-service hotels . The Hyatt Portfolio will represent more than 7% of RLJ’s projected 2013 Hotel EBITDA and more than 7% of its total enterprise value.  The Hyatt Portfolio is another testament to RLJ’s disciplined approach of acquiring institutional grade hotels in premier markets.

RLJ estimates that the Hyatt Portfolio’s 2013 aggregate RevPAR will be greater than $120, which is more than a 10% premium to RLJ’s projected RevPAR for 2013.  Also, more than half of the hotels are expected to be added to RLJ’s top 50 EBITDA contributors, according to Hyatt hotels Corporation.

 

 

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Politics
Parliament issues strong call for EU lobby transparency register to become mandatory

16/04/2014 16:53 (6 Day 18:54 minutes ago)

The FINANCIAL -- The report approved by MEPs gives an important signal to the European Commission that a far more ambitious approach is needed to secure genuine lobby transparency in the EU, according to EUbusiness Ltd.

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