RLJ Development to Pay $1.7 Billion for 100 Hotels

Robert Johnson, founder of Black Entertainment Television, said his investment company has signed a deal to buy 100 hotels for $1.7 billion.

The 100 White Lodging Services Corp., hotels mostly under the Marriott name and located in Indiana, Texas and Illinois, will be staggered, with deals for the first group of 87 hotels is expected to close in the second quarter of 2006. The remaining 13 hotels, which are currently under construction or recently completed, are scheduled to close over the next 18 - 24 months, Johnson's company, RLJ Development LLC, said yesterday.

White Lodging Services Corp., will retain management of the hotels under long-term management agreements and the hotels, which are primarily leading brand franchises including Marriott and Hilton, will continue to operate under the same brand affiliations with long term franchise agreements also in place.

"We are thrilled to add these hotel properties to the RLJ Development portfolio," stated Robert L. Johnson, CEO and Chairman of RLJ Development. "In addition, we are excited about continuing and expanding our relationship with Bruce White and the White Lodging organization. I consider Bruce and his management team the best hotel management group in the country."

The WLS portfolio acquisition marks the second deal over a billion dollars lead by Robert L. Johnson. The first was the sale of Black Entertainment Television to Viacom, Inc. for $3 billion in January 2001. RLJ Development will become one of the largest Marriott franchisees in the United States with over 85% of the WLS portfolio properties affiliated with the Marriott family of brands.