RLJ Lodging Trust disclosed the sale of the 150-room Hilton Garden Inn St. George in Utah for approximately $15.7 million. The company already sold a portfolio of 11 hotels for approximately $85 million in February.
The disposition of these assets comes as part of RLJ Lodging’s capital recycling program. The company plans to redeploy the sale proceeds in opportunistic moves that are aimed at enhancing the company’s presence in higher-growth markets.
Notably, the current Utah property’s sale price signifies a roughly 8.7 percent capitalization rate on the assets’ 2013 net operating income, which is adjusted for awaiting capital expenditures of around $2.3 million. Also, the estimated 2013 revenue per available room (RevPAR) for this non-strategic hotel reflects a discount of over 30 percent to the company’s pro forma RevPAR for 2013.