LaSalle Hotel Properties Announces Contract to Sell Hotel Viking in Newport, Rhode Island
September 10 2014 - 9:00AM
Business Wire
LaSalle Hotel Properties (NYSE: LHO) today announced that it has
entered into a definitive contract to sell Hotel Viking in Newport,
Rhode Island for $77 million. The Company expects the transaction
to close this week. The Company acquired the hotel in June, 1999
for $27 million.
“Hotel Viking was an excellent long term investment for us,”
said Michael D. Barnello, President and Chief Executive Officer of
LaSalle Hotel Properties. “Upon closing, the asset will have
delivered an unleveraged IRR of 10.7 percent and an average
cash-on-cash yield of 8.6 percent over 15 years.”
Proceeds from the transaction will be used to reduce borrowings
on the Company’s Senior Unsecured Credit Facility. In conjunction
with the sale of Hotel Viking, the Company is executing a reverse
1031 exchange with Hotel Vitale, which it purchased during April,
2014.
LaSalle Hotel Properties is a leading multi-operator real estate
investment trust. When this transaction closes, the Company will
own 44 hotels. The properties are upscale, full-service hotels,
totaling more than 11,100 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, 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.
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 sale
of Hotel Viking. 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
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