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RLJ Lodging Trust announced yesterday, July 28th, 2021 that it plans to buy the newly built Midtown Hampton Inn & Suites for $58 million in cash. The hotel opened its doors in February 2020, just before the pandemic led to a unprecedented dip in the hospitality industry. Despite this, population and corporate relocation growth has driven high demand for hospitality real estate in the Atlanta metro area. RLJ expects the Hotel to generate an estimated 8.0% to 8.5% net operating income (NOI) yield after stabilization is achieved.
The hotel features a rooftop bar and sky lobby with an outdoor patio seating area on the top floor, prime for viewing the Atlanta Skyline. It is located in Midtown, on the southeast corner of 15th Street NE and West Peachtree Street NW. The hotel is just a few blocks from Google‘s new Midtown office in Atlanta, and within walking distance to numerous arts and cultural institutions and is also right next door to a small public plaza.
In a press release, RLJ Lodging Trust President and Chief Executive Officer Leslie D. Hale commented that “We are pleased to acquire this high-quality, young asset in one of the fastest growing markets in the country.” She went on to describe Midtown as “a top submarket, and this property is located within the heart of demand, surrounded by significant new development activity.”
The purchase of the Midtown Hampton Inn & Suites is the RLJ Lodging Trust’s fifth hotel acquisition in Atlanta. RLJ describes themselves as a “self-advised, publicly traded real estate investment trust that owns primarily premium-branded, high-margin, focused-service and compact full-service hotels.” The company owns 101 hotels over 23 states, and has operated for approximately 15 years.