LaSalle Hotel Properties Acquires Hotel Vitale in San Francisco for $130.0 Million
April 04 2014 - 9:00AM
Business Wire
LaSalle Hotel Properties (NYSE:LHO) today announced that it
acquired Hotel Vitale in San Francisco, CA for $130.0 million. The
Company funded the acquisition with borrowings from its Senior
Unsecured Credit Facility.
Hotel Vitale Exterior (Photo: Business
Wire)
The 200-room hotel is located at 8 Mission Street at the
intersection of the Embarcadero Waterfront and the Financial
District, across from the historic Ferry Building Marketplace. Its
waterfront location provides striking bay and skyline views. The
hotel is within short walking distance of San Francisco’s office
towers in the Financial District and South of Market (“SoMa”) area.
There is 21 million square feet of existing office space and 3.5
million square feet of new office development within six blocks of
the hotel. Some of San Francisco’s most notable companies surround
the hotel, including Salesforce, Google, Gap and PG&E. Hotel
Vitale is also proximate to world-class retail and entertainment
attractions, such as Steuart Street’s restaurant row, Moscone
Center, AT&T Park and Union Square.
“We are thrilled with this acquisition,” said Michael D.
Barnello, President and Chief Executive Officer of LaSalle Hotel
Properties. “Hotel Vitale is outstanding physically and in terms of
its location. The hotel is surrounded by demand generators that
attract corporate and leisure business and the views from the hotel
are breathtaking.”
“We are also excited about increasing our presence in San
Francisco. Room demand is at peak levels and supply growth is
expected to be limited for the next several years, which bodes well
for owners and operators. Market performance has been strong and we
are pleased to have acquired our sixth hotel in San Francisco.”
Newly constructed in 2005, the hotel has been well maintained
with $6.5 million in subsequent capital expenditures including
restaurant upgrades and new guestroom furniture. Hotel Vitale’s 200
guestrooms average 375 square feet and include 8 suites.
Americano Restaurant & Bar, the hotel’s signature dining
outlet, features a modern design and is comprised of a cocktail
lounge, indoor dining area with 180 degree panoramic views, 18-seat
private dining room and 3,000 square foot outdoor patio overlooking
the Embarcadero and San Francisco Bay. The property offers 11,300
square feet of meeting and event space, including several outdoor
spaces.
The hotel was purchased subject to a ground lease with the City
& County of San Francisco, Municipal Transportation Agency,
which expires on March 8, 2070. Hotel Vitale is managed by Commune
Hotels and Resorts, which also manages the Company’s Gild Hall
hotel in New York.
LaSalle Hotel Properties is a leading multi-operator real estate
investment trust. The Company owns 46 hotels. The properties are
upscale, full-service hotels, totaling approximately 11,600 guest
rooms in 14 markets in 10 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, White Lodging Services
Corporation, Commune Hotels and Resorts, 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.
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/20140404005150/en/
LaSalle Hotel PropertiesBruce A. Riggins or Kenneth G.
Fuller301-941-1500
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