RLJ Lodging Trust has closed the sale of 205-room Embassy Suites Napa Valley in California for $102m.

The firm plans to use the net proceeds from the sale to pay down its credit facility and for general corporate purposes.

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RLJ Lodging Trust president and chief executive officer Ross H. Bierkan said: “The sale of the Embassy Suites Napa is another example of how we seek to unlock shareholder value through both non-core and opportunistic sales.”

“The premium multiple on this sale is indicative of the strong investor appetite for properties in resort-like locations, which allowed us to capture the embedded redevelopment value in this asset and execute a highly accretive transaction.”

As per the hotel’s twelve month results until May, the sale price is equivalent to  14.6x EBITDA multiple and a 6.1% capitalisation rate, without including the planned capital expenditures.

RLJ Lodging Trust is a self-advised, publicly traded real estate investment trust with focus on buying premium branded, focused service and compact full service hotels.

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It owns 154 hotels with around 30,000 rooms across 26 states and the District of Columbia and has an ownership interest in one unconsolidated hotel with 171 rooms.

The company has become publicly-traded in May 2011 and was formed to succeed hotel investment and ownership platform of RLJ Development and its two remaining lodging-focused private equity funds, RLJ Lodging Fund II, LP and RLJ Real Estate Fund III, LP.

In 2000, Robert L. Johnson, executive chairman, and Thomas J. Baltimore Jr. co-founded the RLJ Development.

The company has merged with FelCor Lodging Trust in 2017. This has further diversified the company’s footprint with 37 additional properties.

A Maryland-based real estate investment trust, RLJ Lodging Trust is traded on the New York Stock Exchange.