RLJ Lodging Trust enters Greater Boston market with purchase of Embassy Suites in Waltham for $64 million.
Thomas Grillo
Real Estate Editor- Boston Business Journal
RLJ Lodging Trust (NYSE: RLJ) acquired the 275-room Embassy Suites in Waltham, Mass. for $64.5 million, or $235,000 per room.
The purchase price represents a cap rate of 7.9 percent on the hotel’s projected 2013 net operating income.
Last year, the hotel completed a $12 million brand conversion from a DoubleTree Guest Suites to an Embassy Suites, one of three Embassy Suites in Greater Boston. During the conversion, the rooms and the public spaces were also upgraded.
With more than 37 percent revenue per available room growth generated through September, the company said it expects that the hotel will continue to produce strong returns due to its recent brand conversion and its Waltham location.
Waltham is recognized as a hub for national and international biotech, technology and information system companies including as Raytheon (NYSE: RTN), IBM (NYSE: IBM), Novell (Nasdaq: NOVL), and Verizon (NYSE: VZ). With more than 15 million square feet of office space in this Boston submarket, the hotel said it will benefit from strong corporate demand.
The acquisition of this hotel brings RLJ’s total to 145 hotels with more than 21,600 rooms in 21 states and the District of Columbia.
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