RLJ Lodging Trust (RLJ) said Tuesday that it has acquired the long-term leasehold interest in the 399-room Courtyard by Marriott Waikiki Beach for a purchase price of $75.3 million.
The purchase price represents a forward capitalization rate of about 7.8% based on the Hotel's projected 2014 net operating income.
The company said it purchased the asset with cash available on its balance sheet.
The hotel is located in Honolulu, on the Hawaiian island of Oahu. Honolulu serves as a major gateway for travelers from the Pacific Rim and is ranked as the fourth highest port of entry for international travelers to the U.S., behind only New York City, Miami, and Los Angeles. In 2012, visitor arrivals and spending exceeded historical 2006 and 2007 peak levels.
With the addition of the asset, RLJ Lodging Trust now owns 149 properties, comprised of 148 hotels with more than 22,300 rooms and one planned hotel conversion, located in 22 states and the District of Columbia.
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