RLJ Lodging Trust Buys Hyatt Atlanta Midtown For $49.5 Mln

By RTT News, 
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(RTTNews.com) - RLJ Lodging Trust ( RLJ ) announced Tuesday that it has acquired the 194-room Hyatt Atlanta Midtown located in Atlanta, GA for a purchase price of $49.5 million, or approximately $255,000 per key.

The purchase price represents a forward capitalization rate of approximately 8.0% on the Hotel's projected 2015 net operating income. The Company purchased the Hotel with proceeds from its recent equity offering.

Originally opened in 1987 as a Wyndham, the Hotel was closed by the prior owner to perform a $23.0 million comprehensive renovation and conversion to a compact full-service Hyatt. The Hotel re-opened in July 2013. The company projects that during its first year of full ownership, the Hotel's revenue per available room or "RevPAR" will be more than a 16% premium to the Company's reported 2013 RevPAR.

The company expects that the Hotel will benefit from its strong location, premium brand affiliation, and the relative scarcity of Hyatt branded hotels in Midtown Atlanta. With the addition of this asset, the company now owns 149 properties, comprised of 147 hotels with more than 23,100 rooms and two planned hotel conversions, located in 21 states and the District of Columbia.

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Referenced Stocks: RLJ , WYN

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