RLJ Lodging Trust has closed on the disposition of the Fairmont Copley Plaza in Boston, MA for $170m. Trading for approximately $444,000 per key room, the sale price represents approximately a 4.6% capitalization rate on the hotel’s 2017 projected net operating income. The sale of the property is accretive to the Company’s hotel EBITDA margin which was almost 50 percent lower than the portfolio’s pro forma average in 2016. Net proceeds from the sale for general corporate purposes, with a focus on paying down debt. RLJ Lodging Trust is a self-advised, publicly traded real estate investment trust focused on acquiring premium-branded and compact full-service hotels. Its portfolio consists of 157 hotels with approximately 30,800 rooms located in 26 states and the District of Columbia.
“We are pleased by the execution of the sale of this iconic asset at a very attractive valuation that is significantly accretive to our shareholders across a number of metrics. The disposition of this asset is consistent with our objectives of selling non-core assets and unlocking shareholder value,” commented Ross H. Bierkan, President and Chief Executive Officer. “Our ability to sell this asset shortly after closing the merger highlights the team’s focus on executing our key priorities in a disciplined manner. We remain committed to our disposition strategy, and we look forward to announcing further asset sales as they materialize.”
