LHO Buys Liberty Hotel???s Major Stake - Analyst Blog
January 08 2013 - 1:00PM
Zacks
LaSalle Hotel Properties (LHO), a
multi-operator real estate investment trust (REIT), has recently
purchased majority interest in The Liberty Hotel in Boston,
Massachusetts for a total of $170 million.
LaSalle financed the deal with funds generated through the sale of
common shares made last month. The acquisition was made through a
joint venture with an entity controlled by Dick Friedman of
Carpenter & Company Inc.
This investment in The Liberty Hotel augurs well for the company
with Boston being a chief strategic market for LaSalle.
Advantageously located at 215 Charles Street in the Beacon Hill
area of Boston, this 298-room full service, luxury hotel is
encircled by more than 36 million square feet of Class A office
space.
Originally constructed in 1851 as the Charles Street Jail and then
redeveloped as a hotel in 2007, this property is situated beside
and linked with the Massachusetts General Hospital. It is also
suitably situated within a mile of the Boston central business
district.
Moreover, in its vicinity are a number of leading educational
institutions such as the Harvard University, Massachusetts
Institute of Technology, Northeastern University and Boston
University.
With such a locational advantage, the hotel provides several
shopping, dining and entertainment choices. It has 298 guestrooms
including 10 suites, with nine 800 square-foot suites and the 2,200
square-foot presidential suite. There are also five food and
beverage outlets.
Moreover, it has 8,415 square feet of flexible meeting and function
space comprising six indoor meeting rooms and a secluded 2,400
square-foot courtyard. Liberty will continue operating under The
Luxury Collection franchise. It is subject to a leasehold interest
in the land that expires in May, 2080.
LaSalle owns luxury and upper-upscale hotels in high
barriers-to-entry markets throughout the U.S. The company
specifically focuses on owning, redeveloping and repositioning
upscale full-service hotels in urban, resort and convention
markets. LaSalle currently owns 10,600 guest rooms in 13 markets in
9 states in the U.S. and the District of Columbia.
LaSalle presently has a Zacks #3 Rank that translates into a
short-term Hold rating. We also have a Neutral recommendation and a
Zacks #3 Rank for Host Hotels & Resorts Inc.
(HST), one of LaSalle’s competitors.
HOST HOTEL&RSRT (HST): Free Stock Analysis Report
LASALLE HTL PRP (LHO): Free Stock Analysis Report
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