RLJ Lodging Trust has announced the sale of of two hotels in New York City for $286 million, or $494,500 per room key. The trust sold the 298 room Hilton Garden Inn New York/West 35th Street and the 280 room Hilton New York Fashion District in Manhattan. The sale price represents a cap rate of approximately 4.7 percent based on the hotel’s projected 2016 net operating income, including planned capital expenditures. Following the transaction, RLJ Lodging owns 122 hotels with approximately 20,100 rooms across the United States.
“We capitalized on the strong interest from international investors in the New York City market to execute an opportunistic transaction,” commented Ross H. Bierkan, President and Chief Executive Officer. “While we continue to believe in the New York City market over the long-term, in the near-term these sales reduce our exposure as this market goes through a soft period.”
