RLJ Lodging Trust acquires Hotel Teatro in Denver

RLJ Lodging Trust announced that it has acquired the fee simple interest in the 110-room Hotel Teatro in Denver for a purchase price of $35.5 million. The hotel was redeveloped into an independent boutique lifestyle hotel following the conversion of the historic Denver Tramway Company office building, built about 1911. The hotel is expected to generate more than a 10 percent stabilized yield.

“We are pleased to expand our footprint in Denver by acquiring this unique boutique lifestyle hotel located in a prime location within Denver, in an off-market deal,” said Leslie D. Hale, president and CEO at RLJ Lodging Trust. “The acquisition of this high-quality hotel further increases our mix of lifestyle properties in urban locations that benefit from seven-day-a-week demand. The acquisition price represents a significant discount to recent trades and replacement cost, validating our team’s capabilities and our advantage as an all-cash buyer to source high-quality acquisitio