LP Acquires 63 Hotels From White Lodging for $1 bil
ALLENTOWN, PA, June 16, 2006. RLJ Lodging Fund II, LP , an affiliate of RLJ Development, LLC controlled by Robert L. Johnson, founder of BET and owner of the NBA Charlotte Bobcats, announced today that it has acquired 63 hotels from White Lodging Services Corporation and its affiliates for $1 billion.
The acquisition of these 63 hotels represents the first closing of a portfolio transaction encompassing 100 hotels for a total acquisition price of $1.7 billion announced earlier this year. A second group of 24 hotels is scheduled to close in mid-July, while the remaining 13 hotels, which are currently under construction or recently opened, are scheduled to close over the next 6 - 18 months.
WLS will retain management of the hotels under long-term management agreements. The hotels, which consist primarily of Marriott and Hilton brands, will continue to operate under the same affiliations with long term franchise agreements. In addition, RLJ will become one of the largest Marriott franchisees in the United States with 90% of the WLS portfolio properties affiliated with the Marriott family of brands.
"We are thrilled to close these 63 hotel properties, bringing our total portfolio to 94 hotels," stated Robert L. Johnson, CEO and Chairman of RLJ. "In addition, we are excited about continuing and expanding our relationship with the White Lodging organization."
Bruce White, Chairman and CEO of WLS, stated, "This transaction is consistent with White Lodging's objectives to create value in our operating company, generate liquidity for accelerated future growth in addition to an active development pipeline already in place totaling over forty projects, and to provide a foundation for long term stability. We are pleased to expand on our existing relationship with RLJ, who we have come to respect as consummate professionals, and look forward to continued growth as we work together to enhance the value of this high quality portfolio."
Thomas J. Baltimore, Jr., President of RLJ added, "We are pleased to complete the first closing of 63 assets on schedule and look forward to closing the next 24 hotels in 30 days. The WLS acquisition is consistent with our strategy to invest in upscale, focused service hotels with premium brands in desirable markets."
Marriott International, Inc. (NASDAQ: MAR) is a global leading lodging company based in Bethesda,Maryland, USA, with more than 4,200 properties in 80 countries and territories. Marriott International reported revenues of nearly $14 billion in fiscal year 2014. The company operates and franchises hotels and licenses vacation ownership resorts under 19 brands, including: The Ritz-Carlton®, BVlgari®, EDITION®, JW Marriott®, Autograph Collection® Hotels, Renaissance® Hotels, Marriott Hotels®, Delta Hotels and Resorts®, Marriott Executive Apartments®, Marriott Vacation Club®, Gaylord Hotels®, AC Hotels by Marriott®, Courtyard®, Residence Inn®, SpringHill Suites®, Fairfield Inn & Suites®, TownePlace Suites®, Protea Hotels® and MoxyHotels®. Marriott has been consistently recognized as a top employer and for its superior business ethics. The company also manages the award-winning guest loyalty program, Marriott Rewards® and The Ritz-Carlton Rewards® program, which together surpass 50 million members. For more information or reservations, please visit our website at 
