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- RLJ Lodging Trust Acquires Hotel Teatro in Denver for $35.5 Million
RLJ Lodging Trust Acquires Hotel Teatro in Denver for $35.5 Million
Slice of Real Estate Team
August 06, 2024
Key Highlights:
Acquired Hotel Teatro, a 110-room boutique hotel, for $35.5 million.
Historic property redeveloped from the 1911 Denver Tramway Company office building.
Expected to generate over a 10% stabilized yield.
Source (Business Wire)
Notable Quote:
“We are pleased to expand our footprint in Denver by acquiring this unique boutique lifestyle hotel located in a prime location within Denver, in an off-market deal. The acquisition price represents a significant discount to recent trades and replacement cost, validating our team’s capabilities and our advantage as an all-cash buyer to source high-quality acquisitions in this environment.”
Our Take:
The acquisition of Hotel Teatro by RLJ Lodging Trust represents a strategic expansion into Denver’s vibrant market. This purchase underscores RLJ's commitment to enhancing its portfolio with high-quality, urban lifestyle properties. The hotel's prime location in Denver’s Central Business District, coupled with the city’s robust growth in technology, bioscience, and financial services, positions it to benefit from diverse demand segments. Furthermore, Denver’s recognition as a top meeting and tourism destination, along with significant infrastructure investments like the Denver International Airport expansion, amplifies the potential for strong, sustained returns. Engaging Sage Hospitality Group, a prominent operator in the Denver market, ensures that the Hotel Teatro will be managed to the highest standards, leveraging local expertise to maximize operational efficiency and guest experience.