RLJ Lodging Trust (NYSE: RLJ) purchased the Residence Inn Atlanta Midtown Historic hotel through a foreclosure sale.
In November 2009, RLJ picked up the mortgage loan collateralized by the hotel for $5 million. RLJ was able to acquire the hotel after the previous owner defaulted on the loan in early 2013.
The 78-room Atlanta hotel will be closed later this year to undergo renovations.
RLJ is a real estate investment trust (REIT), headed by Black Entertainment Television founder Robert L. Johnson, that focuses on acquiring branded, full-service hotels. In June, the company bought the long-term leasehold interest in the Courtyard by Marriott Waikiki Beach for $75.3 million.In May 2012, the REIT paid $146.5 million for two New York hotels.
In 2012, Johnson-run RLJ Acquisition Inc. bought two media companies, Image Entertainment Inc. and Acorn Media Group, to form RLJ Entertainment.
For more coverage of Johnson, see “Private Equity Perspective: The RLJ Rule.”