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Behind the Deal: RLJ's Hyatt Buy

Atlanta Hotel

Poring over various SEC filings this week, we uncovered an interesting tidbit from this summer's acquisition of Hyatt Atlanta Midtown by RLJ Lodging Trust. The company paid $49.5M for the 194-room hotel, or some $255k/key from Noble Investment Group. Here's the interesting fact: Based on RLJ's projected 2015 net income on the hotel, it paid a “forward capitalization rate” of 8%. That's certainly a better cap rate than apartment buyers are getting nowadays.