LaSalle Hotel Properties Announces Contract to Sell Indianapolis Marriott Downtown
June 02 2016 - 9:15AM
Business Wire
LaSalle Hotel Properties (NYSE: LHO) today announced that it has
entered into a definitive contract to sell Indianapolis Marriott
Downtown to affiliates of White Lodging Services Corporation and
REI Investments for $165 million. The Company acquired the hotel in
February 2004 for $106 million.
The Company expects the transaction to close early in the third
quarter 2016. The transaction is subject to customary closing
conditions. Proceeds from the transaction will be used to reduce
borrowings on the Company’s senior unsecured credit facility.
LaSalle Hotel Properties is a leading multi-operator real estate
investment trust. When this transaction closes, the Company will
own 46 hotels and a mezzanine loan secured by two hotels in Santa
Monica, California. The properties are upscale, full-service
hotels, totaling more than 11,400 guest rooms in 13 markets in 9
states and the District of Columbia. The Company focuses on owning,
redeveloping and repositioning upscale, full-service hotels located
in urban, resort and convention markets. LaSalle Hotel Properties
seeks to grow through strategic relationships with premier lodging
companies, including Westin Hotels and Resorts, Hilton Hotels
Corporation, Outrigger Lodging Services, Noble House Hotels &
Resorts, Hyatt Hotels Corporation, Benchmark Hospitality, Commune
Hotels and Resorts, Destination Hotels, Davidson Hotel Company,
Kimpton Hotels & Restaurants, Accor, HEI Hotels & Resorts,
JRK Hotel Group, Inc., Viceroy Hotel Group, Highgate Hotels and
Access Hotels & Resorts.
This press release, together with other statements and
information publicly disseminated by the Company, contains certain
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. The Company intends
such forward-looking statements to be covered by the safe harbor
provisions for forward-looking statements contained in the Private
Securities Litigation Reform Act of 1995 and includes this
statement for purposes of complying with these safe harbor
provisions. Forward-looking statements, which are based on certain
assumptions and describe the Company's future plans, strategies and
expectations, are generally identifiable by use of the words
“will,” "believe," "expect," "intend," "anticipate," "estimate,"
"project," “may,” “plan,” “seek,” “should,” or similar expressions.
Forward-looking statements in this press release include, among
others, statements about the Company’s plan to sell Indianapolis
Marriott Downtown. You should not rely on forward-looking
statements since they involve known and unknown risks,
uncertainties and other factors that are, in some cases, beyond the
Company's control and which could materially affect actual results,
performances or achievements. Factors that may cause actual results
to differ materially from current expectations include, but are not
limited to, (i) risks associated with the hotel industry, including
competition for guests and meetings from other hotels and
alternative lodging companies, increases in wages, energy costs and
other operating costs, potential unionization or union disruption,
actual or threatened terrorist attacks, any type of flu or
disease-related pandemic and downturns in general and local
economic conditions, (ii) the availability and terms of financing
and capital and the general volatility of securities markets, (iii)
the Company’s dependence on third-party managers of its hotels,
including its inability to implement strategic business decisions
directly, (iv) risks associated with the real estate industry,
including environmental contamination and costs of complying with
the Americans with Disabilities Act of 1990, as amended, and
similar laws, (v) interest rate increases, (vi) the possible
failure of the Company to maintain its qualification as a REIT and
the risk of changes in laws affecting REITs, (vii) the possibility
of uninsured losses, (viii) risks associated with redevelopment and
repositioning projects, including delays and cost overruns, (ix)
the risk of a material failure, inadequacy, interruption or
security failure of the Company’s or the hotel managers’
information technology networks and systems, and (x) the risk
factors discussed in the Company’s Annual Report on Form 10-K as
updated in its Quarterly Reports. Accordingly, there is no
assurance that the Company's expectations will be realized. Except
as otherwise required by the federal securities laws, the Company
disclaims any obligation or undertaking to publicly release any
updates or revisions to any forward-looking statement contained
herein (or elsewhere) to reflect any change in the Company’s
expectations with regard thereto or any change in events,
conditions or circumstances on which any such statement is
based.
For additional information or to receive press releases via
e-mail, please visit our website at www.lasallehotels.com.
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version on businesswire.com: http://www.businesswire.com/news/home/20160602005772/en/
LaSalle Hotel PropertiesKenneth G. Fuller or Max D. Leinweber,
301-941-1500
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