FOR
IMMEDIATE RELEASE
December 1, 2005
The RLJ Urban Lodging
Fund, L.P. Reaches Milestone of Owning Seventeen Hotels
BETHESDA, MD – Privately
held RLJ Development, LLC (“RLJ”) is pleased
to announce that its affiliate the RLJ Urban Lodging Fund,
LP (“ RLJ Fund”) has acquired eight hotels
since late August 2005. Since the RLJ Fund was launched
in October 2004, it has closed on seventeen assets with
a total acquisition value of approximately $577 million
including planned capital expenditures.
The RLJ Fund has ten institutional investors
including several major public and corporate pension funds,
financial institutions and two dominant hospitality entities.
The RLJ Fund has $315 million in equity commitments and with
leverage has total purchasing power in excess of $900 million.
Robert L. Johnson,
CEO & Chairman,
the RLJ Companies stated, “We are pleased with the
acquisitions pace of the RLJ Fund, having deployed approximately
70% of our committed capital in 13 months from our initial
closing. We will diligently work hard to earn the continued
trust of our investors.”
Thomas J. Baltimore,
Jr., President of RLJ Development, LLC added, “Our
acquisitions to date have been compliant with our investment
strategy, and we remain focused on achieving superior risk
adjusted returns for our investors.”
The eight most recent acquisitions include:
Hilton Garden Inn Washington, D.C.
Downtown - Washington, D.C. - The Hilton Garden
Inn is located in the heart of downtown Washington, D.C.,
just two blocks from the White House and in close proximity
to major government agencies, the K Street corridor, multiple
Metro lines and the new Washington Convention Center. With
300 rooms, this hotel is the third-largest Hilton Garden
Inn in the system. Urgo Hotels will continue to manage
the property.
Residence Inn Boston Cambridge
- Cambridge, MA- This 221-room extended-stay hotel
is located in Cambridge, Massachusetts adjacent to the
Massachusetts Institute of Technology and two miles from
Harvard University. A $3.4 million renovation of
the Residence Inn’s guestrooms is scheduled to be
completed in the second quarter of 2006. Marriott
International, Inc. will continue to manage the hotel.
Residence Inn Inner Harbor - Baltimore,
Maryland- This 188-room hotel recently opened
in August, 2005, and is located in the Inner Harbor district
of downtown Baltimore, Maryland, just blocks from the waterfront
and the Baltimore Convention Center. The Residence Inn
was purchased from Urgo Hotels, who will continue to manage
the hotel for the RLJ Fund.
Courtyard Birmingham UAB - Birmingham,
AL- This 122-room hotel recently opened in July
2005. It is located adjacent to the University
of Alabama at Birmingham (“UAB”) and has been
designated as the “Official Hotel of UAB.” The
RLJ Fund purchased the Courtyard from the Noble Investment
Group, who will continue to manage the hotel.
Hilton Ontario Airport - Ontario,
California- The 309-room Hilton Ontario Airport
is located approximately one mile from the Ontario International
Airport, in the heart of Southern California’s rapidly
growing Inland Empire region. The Hilton is in the
midst of a $5.5 million renovation. The hotel was
purchased from JER Partners and Tarsadia Hotels has been
hired as manager.
Residence Inn Poughkeepsie - Poughkeepsie,
NY- This 128-room extended-stay hotel is just
over one year old, having opened in September 2004 and
was acquired from PRIP, LLC. Marriott International,
Inc. has been retained to manage this hotel.
Embassy Suites Baltimore North
- Hunt Valley, Maryland- This 223-room hotel is
adjacent to the newly redeveloped Hunt Valley Towne Center,
15 miles north of Downtown Baltimore. A significant $4.4
million renovation is currently being planned and will
commence in early 2006. Hilton Hotels Corporation
has been retained to manage the Embassy Suites Baltimore
North.
Lincoln Suites - Washington, D.C.
- This 99-unit, all-suite hotel is located in
the heart of the central business district of downtown
Washington, D.C. A $2 million renovation is scheduled to
commence shortly. Hospitality Partners will continue
to manage the hotel.
The RLJ Fund currently
owns nine Marriott branded hotels, seven Hilton branded
and one independent, with a total room count of 3,414 keys: Residence
Inn Mission Valley, Residence Inn Anaheim, Doubletree Washington
DC, Courtyard Ft. Meade, Hilton Suites Orange, Hilton Suites
Phoenix, Embassy Suites Beachwood, Marriott Atlanta Century
City, Marriott Chicago Medical District/UIC, Lincoln Suites,
Hilton Garden Inn Washington, D.C., Residence Inn Baltimore
Inner Harbor, Embassy Suites North Baltimore/ Hunt Valley,
Courtyard Birmingham Downtown UAB, Hilton Ontario Airport,
Residence Inn Cambridge, and Residence Inn Poughkeepsie.
About RLJ
Development, LLC. RLJ
Development, LLC (“RLJ”) is one of the RLJ Companies
controlled by Robert L. Johnson. RLJ is a privately
held real estate investment company founded and led by Robert
L. Johnson and Thomas J. Baltimore, Jr. RLJ and its
affiliates currently own 28 hotels in major markets in North
America valued in excess of $1 billion dollars. RLJ
is the largest African-American hotel investment company
in the U.S. and is actively seeking additional investment
opportunities across North America in hospitality and related
segments. www.rljhotels.com.
Note: Certain matters discussed
herein are forward-looking statements within the meaning of
the Private Litigation Reform Act of 1995. Certain, but not
necessarily all, of such statements can be identified by the
use of forward-looking terminology, such as “believes,” “expects,” “may,” “will,” “should,” “estimates” or “anticipates” or
the negative thereof or comparable terminology. All forward-looking
statements involve known and unknown risks, uncertainties and
other factors, which may cause the actual transactions, results,
performance or achievements of the Company to be materially
different from any future transactions, results, performance
or achievements expressed or implied by such forward-looking
statements. These may include: (i) national and local economic
and business conditions or governmental regulations that will
affect demand, prices, wages or other costs for hotels; (ii)
the level of rates and occupancy that can be achieved by such
properties; (iii) the Company’s ability to compete effectively
in areas such as access, location, quality of properties and
rate structures; (iv) the ability to maintain the properties
in a first-class manner (including meeting capital expenditure
requirements); (v) the availability and terms of financing;
(vi) changes to the need for compliance with environmental
licensure and safety requirements; and (vii) the ability to
find available acquisitions and investment opportunities. Although
the Company believes the expectations reflected in such forward-looking
statements are based upon reasonable assumptions and business
opportunities, it can give no assurance that its expectations
will be attained or that any deviations will not be material.
The Company undertakes no obligation to publicly release the
result of any revisions to these forward-looking statements
that may be made to reflect any future events or circumstances.
Contact:
Edith Robles
202-466-6040 (o)
202-297-2251 (c)
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