RLJ Lodging Trust Sells The Vinoy Renaissance St. Petersburg Resort & Golf Club for Total Consideration of $188.5 Million
RLJ Lodging Trust (the “Company”) (NYSE: RLJ) announced that the Company has sold the 362-room Vinoy Renaissance St. Petersburg Resort & Golf Club for total consideration of $188.5 million, consisting of the contractual sales price of $185.0 million and the release of $3.5 million in member deposits. The total consideration represents approximately $521,000 per key.
“We are very pleased with the highly accretive valuation this iconic hotel garnered, which further underscores our ability to maximize value from the sale of our non-core assets,” commented Leslie D. Hale, President and Chief Executive Officer. “Our team has made tremendous progress towards achieving our strategic objectives this year and we are well-positioned to continue to unlock the embedded value in our portfolio.”
Based on the operating results for the twelve months ended July 2018, the total consideration equates to a 19.6x EBITDA multiple and 3.9% capitalization rate. The Company also recently sold the 152-room DoubleTree Columbia Hotel for $12.9 million, which is located in Columbia, MD. Based on the operating results for the twelve months ended July 2018, the sale price equates to a 14.1x EBITDA multiple and 5.6% capitalization rate, inclusive of planned capital expenditures.
In aggregate, over the last twelve months, the Company has sold approximately $600 million of assets at an EBITDA multiple of approximately 16x.
- The Company estimates these two dispositions will reduce the 2018 outlook by the following:
- Pro forma Consolidated Hotel EBITDA by $12 million for the full year Adjusted EBITDA by $1 million in the 2018 third quarter and $4 million in the 2018 fourth quarter
The Company applied the net proceeds from the sales to pay down the remaining balance on its credit facility and for general corporate purposes. Holliday Fenoglio Fowler advised the Company on the transaction.
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