RLJ Lodging Trust (NYSE: RLJ) ("RLJ") and Hyatt Hotels Corporation (NYSE: H) ("Hyatt") today announced that Hyatt affiliates have entered into a definitive purchase and sale agreement for RLJ to acquire a portfolio of 10 hotels totaling 1,560 rooms (the "Hyatt Portfolio") consisting of Hyatt, Hyatt Place and Hyatt House hotels. A Hyatt affiliate will continue to manage the hotels under new management agreements.

The Hyatt Portfolio, which is located primarily on the West Coast, is expected to be

acquired for a total purchase price of approximately $313 million. RLJ intends to spend approximately $25 million in capital expenditures across the Hyatt Portfolio, the majority of which will be invested over the next 24 months.

"We are excited about expanding our strategic relationship with Hyatt and increasing our

presence on the West Coast," commented Thomas J. Baltimore, Jr., President and Chief Executive Officer of RLJ Lodging Trust. "Once completed, we will have acquired almost $900 million of assets since our IPO. This deal will be immediately accretive to the portfolio and will reinforce our stated goal of becoming the aggregator in this segment."

"This transaction demonstrates the value from asset recycling. We were able to

successfully convert hotels in key markets to Hyatt brands and sell these hotels to a high quality owner while maintaining long term presence in key markets," said Steve Haggerty, Global Head, Real Estate and Capital Strategy for Hyatt. "We are delighted to deepen our relationship with the team at RLJ Lodging Trust and look forward to future collaboration with them."

Hyatt is a highly recognized, quality company with significant global presence. The Hyatt

Portfolio consists of young, high-performing, and well-situated hotels. The hotels, the majority of which were acquired by Hyatt in 2011, will immediately increase RLJ's West Coast presence, particularly in California where the company is currently seeking to grow its presence. With the addition of this portfolio, RLJ will more than double its hotel earnings before interest taxes depreciation and amortization (EBITDA) on the West Coast. The remaining hotels are located in dense premier markets with multiple demand generators.

RLJ continues to execute its stated strategy of becoming the leading owner of premier

select-service hotels. The Hyatt Portfolio will represent more than 7% of RLJ's projected 2013 Hotel EBITDA and more than 7% of its total enterprise value. The Hyatt Portfolio is another testament to RLJ's disciplined approach of acquiring institutional grade hotels in premier markets.

RLJ estimates that the Hyatt Portfolio's 2013 aggregate RevPAR will be greater than

$120, which is more than a 10% premium to RLJ's projected RevPAR for 2013. Also, more than half of the hotels are expected to be added to RLJ's top 50 EBITDA contributors.

Details of the hotels are listed below:

Property | 
City |
State |
Rooms

  • Hyatt House Cypress / Anaheim | Cypress | CA | 142
  • Hyatt House Emeryville / SF Bay Area | Emeryville | CA | 234
  • Hyatt Place Fremont / Silicon Valley | Fremont | CA | 151
  • Hyatt House San Diego / Sorrento Mesa | San Diego | CA | 193
  • Hyatt House San Jose / Silicon Valley | San Jose | CA | 164
  • Hyatt House San Ramon | San Ramon | CA | 142
  • Hyatt House Santa Clara | Santa Clara | CA | 150
  • Hyatt Market Street, The Woodlands | Woodlands | TX | 70
  • Hyatt House Charlotte / Center City | Charlotte | NC | 163
  • Hyatt Place Madison / Downtown | Madison | WI | 151

Total 
1,560

The transaction is expected to be completed in March 2014 and is subject to customary

closing conditions. RLJ made a $10 million non-refundable deposit upon execution of the purchase agreement.

RLJ expects to fund the acquisition of the Hyatt Portfolio through a combination of

various financial resources available for use, including but not limited to cash on hand, its undrawn revolving credit facility, and debt financing.

With the addition of the Hyatt Portfolio, RLJ is expected to own 160 properties,

consisting of 158 hotels with approximately 24,000 rooms and 2 planned hotel conversions, located in 24 states and the District of Columbia.

About RLJ Lodging Trust

RLJ Lodging Trust is a self-advised, publicly traded real estate investment trust focused

on acquiring premium-branded, focused-service and compact full-service hotels. For more information, please visit www.rljlodgingtrust.com.

About Hyatt Hotels Corporation

Hyatt Hotels Corporation, headquartered in Chicago, is a leading global hospitality company guided by its purpose – to care for people so they can be their best. As of September 30, 2023, the Company's portfolio included more than 1,300 hotels and all-inclusive properties in 76 countries across six continents. The Company's offering includes brands in the Timeless Collection, including Park Hyatt®, Grand Hyatt®, Hyatt Regency®, Hyatt®, Hyatt Vacation Club®, Hyatt Place®, Hyatt House®, Hyatt Studios, and UrCove; the Boundless Collection, including Miraval®, Alila®, Andaz®, Thompson Hotels®, Dream® Hotels, Hyatt Centric®, and Caption by Hyatt®; the Independent Collection, including The Unbound Collection by Hyatt®, Destination by Hyatt®, and JdV by Hyatt®; and the Inclusive Collection, including Impression by Secrets, Hyatt Ziva®, Hyatt Zilara®, Zoëtry® Wellness & Spa Resorts, Secrets® Resorts & Spas, Breathless Resorts & Spas®, Dreams® Resorts & Spas, Hyatt Vivid Hotels & Resorts, Alua Hotels & Resorts®, and Sunscape® Resorts & Spas. Subsidiaries of the Company operate the World of Hyatt® loyalty program, ALG Vacations®, Mr & Mrs Smith™, Unlimited Vacation Club®, Amstar DMC destination management services, and Trisept Solutions® technology services. For more information, please visit www.hyatt.com.

Forward-Looking Statements

Forward-Looking Statements in this press release, which are not historical facts, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by the use of words such as "may," "could," "expect," "intend," "plan," "seek," "anticipate," "believe," "estimate," "predict," "potential," "continue," "likely," "will," "would" and variations of these terms and similar expressions, or the negative of these terms or similar expressions. Such forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable when made, are inherently uncertain, and are subject to numerous assumptions and uncertainties, many of which are outside of Kiraku, Inc. or Hyatt's control, which could cause actual results, performance or achievements to differ materially from those expressed in or implied by such statements. Forward-looking statements made in this press release are made only as of the date of their initial publication and neither party undertakes an obligation to publicly update any of these forward-looking statements as actual events unfold, except to the extent required by applicable law. If one or more forward-looking statements is updated, no inference should be drawn that any additional updates will be made with respect to those or other forward-looking statements.