BETHESDA, Md. — RLJ Lodging Trust (the “Company”) (NYSE: RLJ) today announced that the Company sold two hotels located in Myrtle Beach consisting of the 385-room Hilton Myrtle Beach Resort and 255-room Embassy Suites by Hilton Myrtle Beach Oceanfront Resort (“Kingston Plantation”) for $156.0 million or approximately $244,000 per key.
“We are pleased with the solid execution and attractive multiple generated by the sale of these two beachfront hotels,” commented Leslie D. Hale, President and Chief Executive Officer. “This transaction is a continuation of our strategic efforts to sell non-core hotels and recycle capital into more accretive opportunities that will ultimately drive long-term shareholder value.”
Based on the trailing twelve months ended May 2019, the sales price represents a 12.9x Hotel EBITDA multiple and 6.7% capitalization rate, inclusive of $44.5 million in planned capital expenditures. The Company estimates the disposition of Kingston Plantation will have the following effect on its full year 2019 outlook:
- Pro forma Consolidated Hotel EBITDA will be reduced by approximately $15.5 million
- Adjusted EBITDA will be reduced by approximately $8.8 million
