ATLANTA
RLJ Lodging Trust announced that it has acquired the 194-room Hyatt Atlanta Midtown located in Atlanta, GA for a purchase price of $49.5 million, or approximately $255,000 per key.
The purchase price represents a forward capitalization rate of approximately 8.0% on the hotel's projected 2015 net operating income. RLJ Lodging purchased the property with proceeds from its recent equity offering.
Originally opened in 1987 as a Wyndham, the Hotel was closed by the prior owner to perform a $23.0 million comprehensive renovation and conversion to a compact full-service Hyatt. The Hotel re-opened in July 2013. The Company projects that during its first year of full ownership, the hotel's revenue per available room (RevPAR) will be more than a 16% premium to the Company's reported 2013 RevPAR.
"We are excited to add this newly renovated asset to our portfolio and continue to expand our relationship with Hyatt," commented Thomas J. Baltimore, Jr., President and Chief Executive Officer. "The purchase of the Hotel is immediately accretive to our portfolio and its central location in Midtown Atlanta, one of the most dynamic markets in the Southeast, will position it for exceptional growth."
Hyatt Atlanta Midtown benefits from its location as one of the country's major gateways to the Southeast. Atlanta's economy features diverse demand generators with a strong corporate presence, robust convention activity and a steady flow of tourism. The property has over 3,335 square feet of meeting space that is ideal for groups of up to 100.
