RLJ Lodging Trust Sells Holiday Inn Austin NW Arboretum Area for $13.5 Million
- Jun 20, 2014
One of the hotels nestled in the hills of northwest Austin has left RLJ Lodging Trust’s portfolio. Details about the transaction have not been disclosed.
The 194-room Holiday Inn Austin NW Arboretum Area (the “Hotel”) was built in 1984 near the MoPac Expressway/Highway 183 intersection and RLJ purchased it in 2006 as part of a 100 hotel portfolio. The hotel recently sold for approximately $13.5 million, more precisely $70,000 per key. This represents a 7.9 percent capitalization rate on the hotel’s 2014 net operating income.
“We are very pleased to close on the sale of an additional non-strategic asset. To date, we have sold 15 assets for gross proceeds of more than $130 million,” says Thomas J. Baltimore, Jr., president and CEO. “As we pursue additional dispositions, we are very encouraged by the interest we are seeing for our assets and an improving lending environment. We remain committed to further recycling capital into assets that improve our portfolio quality.”
RLJ Lodging Trust is undergoing a massive capital recycling strategy to strengthen its portfolio through the disposition of assets that don’t match the company’s long-term investment vision. The company owns now 147 properties made out of 145 hotels with approximately 22,700 rooms, and two planned conversions, spread across 22 states and the District of Columbia.
Photo courtesy of RLJ Lodging Trust