RLJ Lodging Trust Acquires Hilton Garden Inn San Francisco/Oakland Bay Bridge
BETHESDA, Md.—RLJ Lodging Trust announced that it acquired the 278-room Hilton Garden Inn San Francisco Oakland/Bay Bridge for a purchase price of $36.2 million, or approximately $130,000 per key. The purchase price represents a forward capitalization rate of approximately 9.4% on the hotel's projected 2013 net operating income. READER COMMENTS
“We are excited to enter the San Francisco Bay Area market, which has been one of the top performing markets in the country in terms of RevPAR growth. The Bay Area is highly recognized as a technology, financial, biotech and venture capitalist hub as well as a major tourist and convention destination,” commented Thomas J. Baltimore, Jr., President and Chief Executive Officer, in an announcement. “Including this acquisition, we have now completed three acquisitions totaling $182.7 million in key gateway markets over the last 30 days.”
The acquisition was funded through cash available on the Company’s balance sheet. An updated Pro forma RevPAR and Pro forma Consolidated Hotel EBITDA outlook will be provided in the Company’s upcoming second quarter earnings statement.