LaSalle Hotel Properties Announces Acquisition of Serrano Hotel in San Francisco for $71.5 Million
August 28 2013 - 9:00AM
Business Wire
LaSalle Hotel Properties (NYSE: LHO) today announced that it
acquired the Serrano Hotel in San Francisco, CA. The purchase price
was $71.5 million. The Company funded the transaction with
borrowings from its Senior Unsecured Credit Facility.
The 236-room, full-service Serrano Hotel is located at 405
Taylor Street in the heart of San Francisco’s Theater District,
three blocks from Union Square and within a few blocks of the
Moscone Convention Center. The hotel is surrounded by numerous
amenities, including restaurants, retail offerings and vibrant
nightlife. The Financial District, Chinatown, Grace Cathedral, Nob
Hill and Sony Metreon are all within walking distance of the
property. The property is also proximate to the emerging corporate
demand driven by technology-related tenants in the South of Market
(“SoMa”) and Mid-Market areas.
The Serrano Hotel’s 236-rooms include 19 suites which average
500 square-feet. The property also features Jasper’s Corner Tap
& Kitchen, which opened in 2011 and has been extremely
well-received by visitors and locals. The asset includes 2,553
square-feet of meeting space in five flexible meeting and banquet
rooms.
Originally built in 1928, the building was closed in 1998 and
completely renovated. It reopened as the Serrano Hotel in 1999.
“We are very excited to have acquired this well-located asset in
one of the strongest markets in the United States,” said Michael D.
Barnello, President and Chief Executive Officer of LaSalle Hotel
Properties. “San Francisco has been experiencing extraordinary
growth and we are very familiar with this particular location and
the asset, as it is next door to our Hotel Monaco and two blocks
from Villa Florence.”
The Serrano Hotel will continue to be operated by Kimpton Hotels
and Restaurants, which is headquartered in San Francisco, CA.
LaSalle Hotel Properties is a leading multi-operator real estate
investment trust. The Company owns 44 hotels and a mezzanine loan
secured by two hotels in Santa Monica, CA. The properties are
upscale full-service hotels, totaling approximately 11,400 guest
rooms in 14 markets in ten 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. 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
LaSalle Hotel PropertiesBruce A. Riggins or Kenneth G. Fuller,
301-941-1500
LaSalle (NYSE:LHO)
Historical Stock Chart
From Jun 2024 to Jul 2024
LaSalle (NYSE:LHO)
Historical Stock Chart
From Jul 2023 to Jul 2024