
The RLJ group has bought the Humble Oil Building complex for 79.5 million USD. The three-tower complex includes two hotels and one apartment building which is being converted.
The 79.5 million USD purchase of the historic Humble Oil Building was prompted by a value-add opportunity, accorfing to Thomas Baltimore Jr., RLJ Lodging Trust president and CEO. The two existing hotels already have “notable upside potential,”The two existing hotels are the 191-room Courtyard Houston Downtown Convention Center and 171-room Residence Inn Houston Downtown Convention Center. The apartment building contains 82 units, and is currently under construction to become a 166-room SpringHill Suites by mid-2015.Based on the two hotels’ projected 2013 income, the purchase price represents a capitalization rate of about 10.1% for the Courtyard and 9.5% for the Residence Inn, according to RLJ representatives.
