LaSalle Hotel Properties Announces Acquisition of Two San Francisco Hotels for Total Purchase Price of $47.8 Million
August 02 2013 - 9:15AM
Business Wire
LaSalle Hotel Properties (NYSE: LHO) today announced that it
acquired the Harbor Court Hotel and Hotel Triton, both located in
San Francisco, CA for $47.8 million. The Company funded the
transaction with borrowings from its Senior Unsecured Credit
Facility.
Harbor Court Lobby (Photo: LaSalle Hotel
Properties)
Harbor Court Hotel
The 131-room, Harbor Court Hotel is located at 165 Steuart
Street in San Francisco’s financial district on the Embarcadero and
offers stunning views of the San Francisco Bay. The hotel is
proximate to many downtown attractions including the Ferry
Building, Embarcadero Center, AT&T Park and the Moscone
Convention Center. The property’s location and access to popular
restaurants, shops and entertainment venues make it an attractive
destination for both leisure and business travelers. Originally
built in 1926, the building was extensively renovated and converted
in 1991 to the Harbor Court Hotel.
The Harbor Court Hotel houses the 230-seat, upscale,
contemporary Japanese Restaurant “Ozumo,” which is leased to a
third-party restaurateur and open for lunch and dinner. Ozumo was
created in May 2001 and has been very successful since opening.
“We are very excited to have acquired these two well-located
assets in one of the strongest markets in the United States,” said
Michael D. Barnello, President and Chief Executive Officer of
LaSalle Hotel Properties. “After exceeding cyclical prior peak
demand in 2011, the market continues to grow. We are equally
encouraged by the very limited supply growth slated for the next
several years.”
Hotel Triton
Hotel Triton is a 140-room hotel located at 342 Grant Avenue in
the Union Square neighborhood of San Francisco. The hotel is close
to the Financial District, less than a mile away from Moscone
Convention Center and sits at the gateway to Chinatown. The
building was originally constructed in 1912 and was converted to a
hotel in 1991. In 2012, the property completed a guestroom
renovation.
Both hotels will continue to be operated by Kimpton Hotels and
Restaurants, which is headquartered in San Francisco, CA. Harbor
Court Hotel and Hotel Triton are subject to building leases, both
of which expire in approximately 34 years.
LaSalle Hotel Properties is a leading multi-operator real estate
investment trust. The Company owns 42 hotels and a mezzanine loan
secured by two hotels in Santa Monica, CA. The properties are
upscale full-service hotels, totaling almost 10,900 guest rooms in
13 markets in nine states and the District of Columbia. The Company
focuses on owning, redeveloping and repositioning upscale and
luxury, full-service hotels located in convention, resort and major
urban business 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, White Lodging Services
Corporation, Thompson Hotels, Davidson Hotel Company, Denihan
Hospitality Group, the Kimpton Hotel & Restaurant Group, LLC,
Accor, Destination Hotels & Resorts, 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” or similar expressions. Forward-looking statements in
this press release include, among others, statements about the
outlook for supply growth in San Francisco. 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) the Company’s dependence on
third-party managers of its hotels, including its inability to
implement strategic business decisions directly, (ii) risks
associated with the hotel industry, including competition,
increases in wages, energy costs and other operating costs, actual
or threatened terrorist attacks, downturns in general and local
economic conditions and cancellation of or delays in the completion
of anticipated demand generators, (iii) the availability and terms
of financing and capital and the general volatility of securities
markets, (iv) risks associated with the real estate industry,
including environmental contamination and costs of complying with
the Americans with Disabilities Act and similar laws, (v) interest
rate increases, (vi) the possible failure of the Company to qualify
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 and (ix) 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
Photos/Multimedia Gallery Available:
http://www.businesswire.com/multimedia/home/20130802005113/en/
LaSalle Hotel PropertiesBruce A. Riggins, 301-941-1500orKenneth
G. Fuller, 301-941-1500
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