RLJ Development Closes $743M Equity Fund

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BETHESDA, MD-Privately held RLJ Development, LLC has just closed its second private equity lodging fund with $743 million of commitments. The RLJ Lodging Fund II LP, also dubbed RLJ Fund II, has a total purchasing power of nearly $2.5 billion.

The RLJ Fund II, though, has been active investor even as RLJ Development continued to raise capital for the fund, acquiring a $1.7-billion, 100-hotel portfolio from Merrillville, IN-based White Lodging Services Corp. earlier this year. The deal was structured to close in three phases. They closed on a $1-billion leg in mid-June and sealed a $390-million transaction in early August. The remaining 13 hotels, for $300 million, are scheduled to close in one to 18 months.