RLJ Lodging Trust announced this week that it plans to acquire the 170-room Homewood Suites Seattle/Lynnwood in Lynnwood.
The Company will use the cash available on its balance sheet for the purchase of the Lynnwood property and the 164-room Hyatt Place DC/Downtown/K Street in Washington, D.C.
“We are excited to add another high quality hotel to our Washington, D.C. portfolio and expand our West Coast footprint with our first hotel in the greater Seattle area,” said Thomas J. Baltimore, Jr., President and Chief Executive Officer.
The price for the 170-room Homewood Suites Seattle/Lynnwood is $37.9 million, or approximately $223,000 per key. The purchase price represents a forward capitalization rate of approximately 8.0 percent on the hotel’s projected 2016 net operating income. Opened in May 2014, the Homewood Suites is located in Seattle’s premier Lynnwood submarket, a region anchored by diverse industries such as aerospace, technology and healthcare. The Seattle market has been one of the strongest performing Top 25 markets as defined by Smith Travel Research with 12.6 percent revenue per available room growth in 2014 and 10.9 percent year-to-date as of May 2015.
With the addition of these two assets, the Company will own approximately 128 properties, comprised of 126 hotels with approximately 20,800 rooms and two planned hotel conversions, located in 22 states and the District of Columbia.