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Embassy Suites Napa Valley Sold for $102M
Bethesda, MD-based RLJ Lodging Trust sold the 205-room Embassy Suites Napa Valley for $102 million, or roughly $498,000 per key. The buyer was reportedly Mani Brothers Real Estate Group. Based on the hotel’s trailing 12 month results as of May 2018, the sale price equates to a 14.6x EBITDA multiple and a 6.1% capitalization rate, excluding planned capital expenditures.
RLJ Lodging Trust’s Ross H. Bierkan says, “The sale of the Embassy Suites Napa is another example of how we seek to unlock shareholder value through both non-core and opportunistic sales. The premium multiple on this sale is indicative of the strong investor appetite for properties in resort-like locations, which allowed us to capture the embedded redevelopment value in this asset and execute a highly accretive transaction.”
RLJ Lodging Trust says it will apply the net proceeds from the sale to pay down its credit facility, and for general corporate purposes.
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- ◦Sale/Acquisition


