RLJ Lodging Trust has sold 24 hotels in the US for a approximately $240m.
The hotels were chosen based on their operating performance, market location, and pending capital requirements relative to the company’s long-term investment strategy, RLJ said.
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The sale could save an estimated $65m of pending capital expenditures and the sale proceeds will be used to fund future hotel acquisitions.
RLJ Lodging Trust president and CEO Thomas Baltimore Jr said: "We are very pleased with the execution of our capital recycling programme. In total, we have now sold 39 hotels for approximately $370m over the last 16 months and improved our overall portfolio metrics.
"We remain committed to creating long-term shareholder value through enhancing our portfolio’s quality and recycling capital into higher-growth markets."
The sale price represents a 7.9% capitalisation rate on the net operating income of the hotels for 2014, which include planned capital expenditures.
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By GlobalDataThe hotels’ revenue per available room (RevPAR) was more than 40% below its average portfolio and stood at around $72.
In aggregate, the hotels’ earnings before interest, taxes, depreciation, and amortisation (EBITDA) represents approximately 7% of the company’s EBITDA in 2014.
RLJ now owns 126 properties following the sale of these assets. These include 124 hotels with more than 20,400 rooms and two planned hotel conversions, located in 21 states and the District of Columbia, US.
