December 7, 2016
RLJ Lodging Trust sold two hotels in New York City for a total of $286 million to an undisclosed seller. The hotels were the 298-room Hilton Garden Inn New York/West 35th Street, 63 W. 35th St.; and the 280-room Hilton New York Fashion District, 152 W. 26th St.
The sales price represented a 4.7% cap rate on the projected 2016 net operating income. The company will use the proceeds from the hotel sales for general corporate purposes.
“We capitalized on the strong interest from international investors in the New York City market to execute an opportunistic transaction,” said RLJ’s president and CEO Ross H. Bierkan. “While we continue to believe in the New York City market over the long-term, in the near-term these sales reduce our exposure as this market goes through a soft period.”
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