BETHESDA, Md.—RLJ Lodging Trust announced that it has acquired the 106-room SpringHill Suites Portland Hillsboro for a purchase price of $24.0 million, or approximately $226,000 per key. The purchase price represents a forward capitalization rate of approximately 10 percent on the hotel’s projected 2014 net operating income. The company purchased this asset with cash available on its balance sheet.
“We continue to expand our presence on the West Coast with a great addition to our portfolio,” commented Thomas J. Baltimore, Jr., president and chief executive officer. “This acquisition is immediately accretive to our portfolio and exemplifies our strategy of investing in premium-branded assets in premier markets.”
In 2011, the Hotel underwent a major renovation that included all public spaces and guestrooms and will require minimal additional capital expenditure in the upcoming years. The strength of this newly upgraded hotel in Portland’s Hillsboro submarket is evident by the hotel’s impressive August trailing twelve month revenue per available room (RevPAR) market penetration of 126.7, and year-over-year RevPAR growth of 11.1 percent, as reported by Smith Travel Research.
With the addition of this asset, the RLJ Lodging Trust now owns 151 properties, comprised of 149 hotels with more than 22,400 rooms and two planned hotel conversions, located in 23 states and the District of Columbia.