RLJ Lodging Trust sells Napa hotel for $102m

RLJ Lodging Trust has closed on the sale of the 205-room Embassy Suites Napa Valley for $102 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 noncore and opportunistic sales,” commented Ross Bierkan, president and CEO of RLJ Lodging Trust. “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 12-month results as of May 2018, the sale price equates to a 14.6x EBITDA multiple and a 6.1 percent capitalization rate, excluding planned capital expenditures.

RLJ Lodging Trust intends to apply the net proceeds from the sale to pay down its credit facility and for general corporate purposes.

RLJ Lodging Trust is a self-advised