Some 10 hotels around the country, including the 193-room Hyatt House Hotel in Sorrento Mesa, are being acquired by the RLJ Lodging Trust REIT (NYSE: RLJ) from Hyatt Hotels Corp. (NYSE: H) for a total of $313 million.
In May 2011 Hyatt had paid a total of $76.5 million to acquire three hotels that included the Sorrento Mesa asset at 10044 Pacific Mesa Blvd., along with other former Hardage Hotels in Cypress and Emeryville, Calif. The 142-room Cypress and the 234-room Emeryville hotel are also part of this transaction.
A Hyatt affiliate will continue to manage the hotels under new management agreements.
Bethesda, Md.-based 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 the West Coast,” Thomas J. Baltimore Jr., RLJ president and CEO, said in a statement. “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.”
While most the assets are in California, RLJ will have Hyatt House hotels in Texas, Wisconsin and North Carolina as well.