BETHESDA, Md.–RLJ Lodging Trust (the “Company”) (NYSE: RLJ) today announced that the Company has closed on the sale of the 205-room Embassy Suites Napa Valley (“Embassy Suites Napa”) for $102.0 million or approximately $498,000 per key.
“The sale of the Embassy Suites Napa is another example of how we seek to unlock shareholder value through both non-core and opportunistic sales,” commented Ross H. Bierkan, President and Chief Executive Officer. “The premium multiple on this sale is indicative of the strong investor appetite for properties in resort-like locations, which allowed us to capture the embedded redevelopment value in this asset and execute a highly accretive transaction.”
Based on the hotel’s trailing twelve month results as of May 2018, the sale price equates to a 14.6x EBITDA multiple and a 6.1% capitalization rate, excluding planned capital expenditures.
The Company intends to apply the net proceeds from the sale to pay down its credit facility and for general corporate purposes.
