RLJ Lodging Trust has sold an additional non-strategic hotel, the 182-room Hilton Mystic, in Mystic, Conn., for approximately $14.1 million or $77,200 per key. The sale price represents approximately a 7.4-percent capitalization rate on the hotel's projected 2014 net operating income, adjusted for approximately $4.5 million of pending capital expenditures.
"We continue to focus on creating value by recycling capital from non-strategic asset sales into higher-yielding acquisitions," said Thomas J. Baltimore, Jr., president and CEO. "Our capital recycling program remains active. Over the last five months we have sold 14 non-strategic hotels for over $115.0 million. As we continue to enhance our portfolio, we will remain disciplined in the selection and execution of all asset sales."
The 2013 revenue per available room hotel represents a discount of approximately 18 percent to the company's reported 2013 pro forma RevPAR.
With the sale of this hotel, RLJ owns 146 properties, consisting of 144 hotels with approximately 22,400 rooms and two planned hotel conversions, located in 21 states and the District of Columbia.