$315M Lodging Fund Closing Completed

BETHESDA, MD-RLJ Urban Lodging Fund, a debut fund of RLJ Development LLC, has officially closed with $315 million in equity commitments by 10 institutional investors. The oversubscribed fund–characterized by its focus on the acquisition and development of luxury lodging establishments, as well as compact full-service hotels–leaves the door open for access to more than $900 million.

RLJ Development head Robert L. Johnson, who is also CEO of BET entertainment company and owner of both professional men’s and women’s basketball teams, describes the investor interest in the fund as “overwhelming.” Among the diverse list of investors in the RLJ Fund is Marriott International Inc., which contributed $20 million. The fund will target urban areas and will develop properties that will operate under the Hilton and Marriott brands. Real estate investment bank Presidio Partners represented RLJ in completing the closing of the fund. In advance of its closing, the RLJ Fund acquired three properties accounting for a total investment of $122 million. An additional $48 million in investments is on tap to close within the next three months.