The firm is still very bullish on the hotel market, especially as there is little supply on the horizon, Baltimore notes. "The White Lodging Services transaction has been very compatible with our strategy of investing in upscale hotels in urban or dense suburban markets. Also, their portfolio is very young and many of the properties are based in recovery markets." RJL would also consider other brands for its portfolio, he adds.
Yesterday the firm announced it had completed the acquisition of 63 hotels from WLS for $1 billion. A second group of 24 hotels is scheduled to close in mid-July, while the remaining 13 hotels, currently under construction or recently opened, are scheduled to close over the next six to 18 months. When the acquisitions are complete, RLJ will become the largest Marriott franchisees in the US with 90% of the WLS portfolio properties affiliated with the Marriott family of brands.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
