Real estate investment trust RLJ Lodging has announced the acquisition of the Hilton Garden Inn San Francisco/Oakland Bay Bridge for $36.2m.
RLJ Lodging president and chief executive officer Thomas Baltimore Jr said the San Francisco Bay area has been one of the top-performing markets in the US in terms of revenue per available room (RevPAR) growth.
[quote]”Including this acquisition, we have now completed three acquisitions totalling $182.7m in key gateway markets over the last 30 days,” Baltimore added.[/quote]
RLJ Lodging said the 278-room hotel benefits from the location between San Francisco and Oakland Bay as well as from the demand generated by Hilton’s reservation system and guest loyalty programme.
In May 2012, RLJ already acquired the 226-room Courtyard New York Manhattan, Upper East Side and the 187-room Residence Inn by Marriott Bethesda Hotel Downtown, for a combined total of $146.5m.
“Including this acquisition, we have now completed three acquisitions totalling $182.7m in key gateway markets over the last 30 days.”
The latest addition brings the total number of the company’s owned hotels to 144 hotels that span across 20 states and the District of Columbia, with more than 21,300 rooms.
According to RLJ, the purchase price represents a forward capitalisation rate of about 9.4% on the hotel’s net operating income projected for 2013.
RLJ’s purchase price is said to be much lower compared to other recently traded hotels in the area and is at a significant discount to replacement cost.
Source: hotelmanagement-network.com