RLJ Lodging Trust (
, a real estate investment trust (REIT), recently announced the
acquisition of Hilton Garden Inn San Francisco Oakland/Bay Bridge
hotel in San Francisco Bay Area market for $36.2 million. The
hotels' purchase price signifies a forward capitalization rate of
around 9.4% on the estimated net operating income in 2013 and is
much lower than the replacement cost.
Situated in the City of Emeryville, the 278-room hotel is well
linked with the University of California Berkeley, a world famous
university and the third largest employer in the Bay Area.
Additionally, the hotel also benefits from the high demand
generated from the large East Bay/Oakland office market spanning
more than 113 million square feet.
Centrally located between San Francisco and Oakland, the hotel
caters to the demand of travelers in both cities and is in close
proximity to the two international airports. As a matter of fact,
the hotels' strong reservation system and guest loyalty programs
have been major demand drivers in the past.
RLJ Lodging has been active on the acquisition front in key
gateway markets of United States like Washington DC, New York City
and others. Recently, it also acquired two focused-service hotels,
the 187-room Residence Inn by Marriott Bethesda Hotel Downtown and
the 226-room Courtyard New York Manhattan/Upper East Side for a
combined purchase price of $146.5 Million. Overall, RLJ Lodging has
completed three acquisitions in core markets for a total of $182.7
million over the last 30 days.
Founded in 2000, RLJ Lodging invests in real estate markets and
manages real estate funds in United States. It primarily focuses on
the acquisition of premium-branded, focused-service and compact
full-service hotels. As of now, the company owns 144 hotels, having
more than 21,300 rooms, spanning across 20 states and the District
We have a long-term Neutral recommendation on RLJ Lodging, which
presently has a Zacks #1 Rank translating into a short-term Strong
Buy rating. We have a Neutral recommendation and a Zacks #3 Rank
(short-term Hold rating) for
Hospitality Properties Trust (
, one of the peers of RLJ Lodging.
HOSPITALITY PRP (HPT): Free Stock Analysis
RLJ LODGING TR (RLJ): Free Stock Analysis
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