RLJ Lodging Trust Acquires Hotel Teatro in Denver
RLJ Lodging Trust has acquired the Hotel Teatro in Denver for $35.5 million, expanding its portfolio of lifestyle properties in urban locations. The 110-room boutique hotel, converted from a historic building, is expected to generate a 10% stabilized yield. Located in Denver's CBD, the hotel benefits from its proximity to key attractions and is poised to capitalize on the city's growing economy and tourism sector.
The acquisition price represents a significant discount to recent trades and replacement cost, showcasing RLJ's advantage as an all-cash buyer. The property will be managed by Sage Hospitality Group, the largest hotel operator in Denver. This strategic move aligns with RLJ's focus on high-quality, premium-branded hotels in prime locations that cater to diverse demand segments.
RLJ Lodging Trust ha acquistato il Hotel Teatro a Denver per 35,5 milioni di dollari, ampliando il proprio portafoglio di proprietà lifestyle in località urbane. L'hotel boutique da 110 camere, ricavato da un edificio storico, dovrebbe generare un rendimento stabilizzato del 10%. Situato nel centro commerciale di Denver, l'hotel beneficia della sua prossimità alle attrazioni principali ed è pronto per capitalizzare sulla crescente economia e settore turistico della città.
Il prezzo di acquisizione rappresenta uno sconto significativo rispetto agli scambi recenti e ai costi di sostituzione, mettendo in evidenza il vantaggio di RLJ come acquirente in contante. La proprietà sarà gestita da Sage Hospitality Group, il più grande operatore alberghiero di Denver. Questa mossa strategica si allinea con il focus di RLJ su hotel di alta qualità, a marchio premium, in località strategiche che soddisfano segmenti di domanda diversificati.
RLJ Lodging Trust ha adquirido el Hotel Teatro en Denver por 35,5 millones de dólares, expandiendo su cartera de propiedades estilo de vida en ubicaciones urbanas. El hotel boutique de 110 habitaciones, convertido de un edificio histórico, se espera que genere un rendimiento estabilizado del 10%. Ubicado en el CBD de Denver, el hotel se beneficia de su proximidad a las atracciones clave y está preparado para capitalizar la creciente economía y sector turístico de la ciudad.
El precio de adquisición representa un descuento significativo respecto a operaciones recientes y al costo de reemplazo, demostrando la ventaja de RLJ como comprador en efectivo. La propiedad será gestionada por Sage Hospitality Group, el operador hotelero más grande de Denver. Este movimiento estratégico se alinea con el enfoque de RLJ en hoteles de alta calidad y marca premium en ubicaciones clave que atienden a diversos segmentos de demanda.
RLJ Lodging Trust는 덴버의 호텔 테아트로를 인수했습니다. 3550만 달러에 인수하여 도시 지역 내 라이프스타일 자산 포트폴리오를 확장했습니다. 역사적인 건물에서 개조된 110객실 부티크 호텔은 10%의 안정화 수익률을 생성할 것으로 예상됩니다. 덴버의 CBD에 위치한 이 호텔은 주요 명소와의 근접성 덕분에 이점을 누리며, 도시의 성장하는 경제 및 관광 산업을 효과적으로 활용할 준비가 되어 있습니다.
인수 가격은 최근 거래 및 교체 비용에 비해 상당한 할인을 나타내며 RLJ가 현금 구매자로서의 우위를 보여줍니다. 이 자산은 덴버에서 가장 큰 호텔 운영자인 Sage Hospitality Group에 의해 관리됩니다. 이 전략적 움직임은 RLJ가 높은 품질과 프리미엄 브랜드 호텔에 초점을 맞추고 있으며, 다양한 수요 세그먼트를 충족하는 주요 위치에서의 운영과 일치합니다.
RLJ Lodging Trust a acquis l'Hôtel Teatro à Denver pour 35,5 millions de dollars, élargissant ainsi son portefeuille de propriétés de style de vie dans des emplacements urbains. L'hôtel boutique de 110 chambres, reconverti à partir d'un bâtiment historique, devrait générer un rendement stabilisé de 10%. Situé dans le centre des affaires de Denver, l'hôtel bénéficie de sa proximité avec les principales attractions et est prêt à tirer parti de l'économie croissante et du secteur du tourisme de la ville.
Le prix d'acquisition représente un rabais significatif par rapport aux transactions récentes et au coût de remplacement, mettant en avant l'avantage de RLJ en tant qu'acheteur en espèces. La propriété sera gérée par le Sage Hospitality Group, le plus grand opérateur hôtelier de Denver. Ce mouvement stratégique est en adéquation avec l'accent mis par RLJ sur des hôtels de haute qualité, de marque premium, dans des emplacements clés répondant à des segments de demande diversifiés.
RLJ Lodging Trust hat das Hotel Teatro in Denver erworben für 35,5 Millionen Dollar und erweitert damit sein Portfolio an Lifestyle-Immobilien in städtischen Lagen. Das 110-Zimmer-Boutique-Hotel, das aus einem historischen Gebäude umgebaut wurde, soll eine stabilisierte Rendite von 10% erzielen. Das Hotel liegt im Stadtzentrum von Denver und profitiert von der Nähe zu wichtigen Sehenswürdigkeiten, während es bereit ist, von der wachsenden Wirtschaft und dem Tourismussektor der Stadt zu profitieren.
Der Erwerbspreis stellt einen erheblichen Rabatt im Vergleich zu aktuellen Transaktionen und dem Ersatzkosten dar, was RLJs Vorteil als Barzahler unterstreicht. Die Immobilie wird von der Sage Hospitality Group, dem größten Hotelbetreiber in Denver, verwaltet. Diese strategische Entscheidung steht im Einklang mit RLJs Fokus auf hochwertige, premium Markenhotels an erstklassigen Standorten, die unterschiedlichen Nachfragesegmenten gerecht werden.
- Acquisition price of $35.5 million represents a significant discount to recent trades and replacement cost
- Expected to generate over 10% stabilized yield
- Expands RLJ's portfolio of lifestyle properties in urban locations
- Prime location in Denver CBD, benefiting from diverse demand segments
- Hotel Teatro has received numerous accolades and recognition for quality
- None.
Insights
RLJ Lodging Trust's acquisition of Hotel Teatro in Denver for
The acquisition price, described as a "significant discount to recent trades and replacement cost," suggests RLJ has secured a potentially undervalued asset. This could translate to substantial upside potential, especially considering Denver's robust tourism and business sectors.
However, investors should consider the following:
- The hotel's relatively small size (110 rooms) may limit scalability and economies of scale.
- The property's boutique and independent nature could present both opportunities (uniqueness, higher ADR) and challenges (lack of brand recognition, potentially higher marketing costs).
- The
$35.5 million investment represents a per-key cost of approximately$322,727 , which is substantial for a non-luxury property, even in a prime urban location.
Overall, while the acquisition appears promising, its impact on RLJ's overall portfolio and financial performance will depend on successful integration and management.
The acquisition of Hotel Teatro by RLJ Lodging Trust is a calculated move that capitalizes on Denver's burgeoning market dynamics. Several factors support this strategic decision:
- Denver's recognition as a top 10 meeting destination in North America by Cvent in 2023 underscores its growing importance in the business travel sector.
- The recent
$233 million expansion of the Colorado Convention Center is likely to drive increased demand for nearby accommodations. - Denver International Airport's ongoing
$2.3 billion expansion, set to increase capacity by30% , signals strong growth prospects for the city's tourism and business sectors. - The city's diversifying economy, with thriving industries such as technology, bioscience and financial services, provides a solid foundation for sustained hotel demand.
However, investors should be aware of potential challenges:
- The competitive landscape in Denver's hotel market, particularly in the boutique segment, could intensify as the city's profile rises.
- The success of this acquisition will partly depend on RLJ's ability to maintain Hotel Teatro's reputation and accolades, which have been a key driver of its performance.
In conclusion, while the acquisition aligns well with Denver's positive market trends, RLJ's ability to leverage these opportunities and navigate potential challenges will be important in determining the long-term value of this investment.
BETHESDA, M.D.--(BUSINESS WIRE)--
RLJ Lodging Trust (the “Company”) (NYSE: RLJ) today announced that it has acquired the fee simple interest in the 110-room Hotel Teatro in
Hotel Teatro Exterior. (Photo: Business Wire)
“We are pleased to expand our footprint in
Situated within the Denver CBD, the Hotel benefits from its heart-of-demand location in close proximity to the Denver Performing Arts Complex, the
The Hotel is routinely recognized as one of the best hotels in
The Company has engaged
Property Snapshot
A brief snapshot of the acquisition with key information may be found on RLJ Lodging Trust’s website by following the link https://investor.rljlodgingtrust.com/news-and-events/webcasts-and-presentations.
About Us
RLJ Lodging Trust is a self-advised, publicly traded real estate investment trust that owns primarily premium-branded, high-margin, focused-service and compact full-service hotels.
Forward Looking Statements
This information contains certain statements, other than purely historical information, including estimates, projections, statements relating to the Company’s business plans, objectives and expected operating results, and the assumptions upon which those statements are based, that are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements generally are identified by the use of the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “plan,” “may,” “will,” “will continue,” “intend,” “should,” “may,” or similar expressions. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, beliefs and expectations, such forward-looking statements are not predictions of future events or guarantees of future performance and our actual results could differ materially from those set forth in the forward-looking statements. Except as required by law, the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise. The Company cautions investors not to place undue reliance on these forward-looking statements and urges investors to carefully review the disclosures the Company makes concerning risks and uncertainties in the sections entitled “Risk Factors,” “Forward-Looking Statements,” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s Annual Report, as well as risks, uncertainties and other factors discussed in other documents filed by the Company with the Securities and Exchange Commission.
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View source version on businesswire.com: https://www.businesswire.com/news/home/20240801032880/en/
Sean M. Mahoney, Executive Vice President and Chief Financial Officer – (301) 280-7774
Source: RLJ Lodging Trust
FAQ
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