Buccini/Pollin Group bought Sheraton Philadelphia Society Hill for $95.5m from RLJ Lodging Trust. The 364-room property traded for just under $262,365 per room. The sales price represents approximately a 5.6-percent capitalization rate on the hotel’s 2017 net operating income. PM Hotel Group was tapped to manage the hotel.
“The sale of another non-core asset at a highly accretive valuation highlights the meaningful progress we have achieved in realizing the embedded value from the FelCor merger,” said Ross Bierkan, president and CEO of RLJ. “Not only is this disposition highly accretive on a valuation basis, but it is also accretive to our portfolio RevPAR and EBITDA margin. With this transaction, we have accomplished our initial goal of generating approximately $300m from asset sales at an attractive aggregate multiple. We continue to expect to execute on a second round of asset sales that will generate an additional $200m to $400m in proceeds this year.”
