Downtown's Newest Hotel
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RLJ Lodging Trust acquired the historic Humble Oil Building complex Downtown and is converting one of its three towers into a hotel. The complex already contains two hotels (a Courtyard and a Residence Inn) totaling 362 rooms; an 82-unit multifamily tower will be converted into a 166-room SpringHill Suites. The project sold for $80M, which RLJ pegs at $151k per key based on the new total 528 rooms. The deal was an off-market transaction, and RLJ CEO Thomas Baltimore Jr says both existing hotels have notable upside potential. His company was drawn to Houstons RevPAR growth; at nearly 14%, were third-highest in the US. (The RevPAR gets 'em in the door, the BBQ keeps 'em coming back.) The hotel conversion will be complete in 2015.