RLJ Lodging Trust to Acquire Hampton Inn & Suites Atlanta Midtown For $58m
Main Photo: Hampton Inn & Suites Atlanta Midtown
Date: September 2021
Name: Hampton Inn & Suites Atlanta Midtown
Location: Atlanta, Georgia, USA
Number of Keys: 186
Seller: Atlanta-Based North Point Hospitality Developed the Project
Buyer: RLJ Lodging Trust
RLJ Lodging Trust is under contract to acquire the fee simple interest in the 186-room Hampton Inn & Suites Atlanta Midtown for a purchase price of $58.0 million in cash. Upon stabilisation, the company expects the hotel to generate an estimated 8.0% to 8.5% NOI yield.
The hotel was constructed as a purpose-built, high-rise Hampton Inn & Suites and opened in February 2020. In addition to 186-rooms and suites, it features a sky lobby on the top floor and a rooftop bar with outdoor patio seating and views of Atlanta’s skyline. The property is located just three blocks from Google’s new office in the city.
The property is located in the heart of Midtown Atlanta, which is a top submarket with one of the strongest growth profiles, within the Atlanta metro region. Since 2015, Midtown Atlanta has seen population growth that is five times the City of Atlanta and remains poised for significant future growth with major office, residential, retail expansion and development projects underway, the company reports. The hotel opened its doors in February 2020.
RLJ expects to close on the transaction during the third quarter, subject to customary closing conditions. With the acquisition of the Hampton Inn & Suites Atlanta Midtown, the company will own five hotels in the Atlanta market.
RLJ Lodging Trust is a self-advised, publicly traded real estate investment trust focused on owning premium-branded, focused-service and compact full-service hotels. The company’s portfolio consists of 97 hotels with approximately 22,100 rooms located in 23 states and the District of Columbia and an ownership interest in one unconsolidated hotel with 171 rooms.
Their strategy is to invest in focused-service and compact full-service hotels, which typically generate most of their revenue from room rentals, have limited food and beverage outlets and meeting space, and require fewer employees than larger hotels. They believe that such premium-branded, focused-service hotels have the potential to provide attractive risk-adjusted returns relative to larger full-service hotels due to their ability to generate higher revenue per room while providing better profit margins as a result of a more efficient operating model and less volatile cash flows. The hotels operate under well-recognized global brands, including Courtyard by Marriott, Residence Inn by Marriott, Hilton Garden Inn, Homewood Suites by Hilton, Hyatt Place, Wyndham and Embassy Suites.
RLJ Development was co-founded in 2000 by Robert L. Johnson, Executive Chairman, and Thomas J. Baltimore Jr.. In August 2017, the company completed its merger with FelCor Lodging Trust, giving it an addition of 37 high quality properties. The company is a self-advised and self-administered Maryland real estate investment trust and is traded on the New York Stock Exchange under the stock symbol “RLJ”.
Price: $58m
Price per Key: $311,828
THPT Comment: Good buy for RLJ and allowing to get the magic 100 number of hotels mark.
First Seen: www.hotelbusiness.com
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