Hotel Renamed Park Central San
Francisco
LaSalle Hotel Properties (NYSE:LHO) today announced that it
acquired The Westin Market Street in San Francisco, California for
$350.0 million. The Company funded the acquisition with cash on
hand and borrowings from its senior unsecured credit facility.
Executive Suite (Photo: Business
Wire)
At closing, the Company renamed the hotel Park Central San
Francisco. Highgate Hotels will continue to manage the asset as an
independent hotel on behalf of the Company. Highgate Hotels also
manages Park Central and WestHouse in Manhattan and Southernmost
Hotel Collection in Key West on behalf of the Company.
The 681-room hotel is centrally located at 50 Third Street, just
steps from Market Street, which bisects San Francisco between the
SoMa District and the Financial District. SoMa is a highly
diversified submarket, including the neighboring Moscone Convention
Center, the Yerba Buena Gardens, the Yerba Buena Center for the
Arts (within two blocks of the hotel), AT&T Park and office
headquarters for companies such as Twitter, Instagram and
Pinterest. In addition to numerous nearby office towers, retail
outlets and restaurants, guests benefit from the hotel’s convenient
location three blocks from Union Square.
“We are thrilled to have acquired this prominent hotel with such
a fantastic location” said Michael D. Barnello, President and Chief
Executive Officer of LaSalle Hotel Properties. “The San Francisco
lodging market remains very strong, with demand at peak levels and
limited supply growth on the horizon, and we are excited about
increasing our presence in San Francisco for the second time within
10 months – marking our seventh hotel in the city. Approximately
17% of our EBITDA is now generated in San Francisco.”
“Park Central San Francisco represents an excellent opportunity
to expand our relationship with Highgate Hotels and capitalize on
cross-selling initiatives with the Park Central in Manhattan.”
The hotel was constructed in 1984 and underwent a comprehensive
$28.3 million renovation in 2007. The asset has been well
maintained since, with $14.0 million invested from 2009 to present.
The Company is planning to commence a normal life-cycle renovation
in the fourth quarter of 2016.
The hotel’s 681 guestrooms average 347 square feet. The property
has 23,000 square feet of flexible meeting and event space,
including a 9,000 square-foot ballroom with capacity of up to 1,200
guests. MaSo, the hotel’s only dining outlet, offers
locally-sourced cuisine, an outdoor terrace and can host private
events for up to 300 guests.
The Park Central San Francisco was purchased fee simple.
The potential hotel acquisition the Company previously disclosed
to be under contract in Los Angeles is no longer under
contract.
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 more than 11,900 guest rooms
in 14 markets in ten 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, contain 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) risks associated with the
hotel industry, including competition, increases in wages, energy
costs and other operating costs, potential unionization, actual or
threatened terrorist attacks, any type of flu or disease-related
pandemic and downturns in general and local economic conditions,
(ii) the availability and terms of financing and capital and the
general volatility of securities markets, (iii) the Company's
dependence on third-party managers of its hotels, including its
inability to implement strategic business decisions directly, (iv)
risks associated with the real estate industry, including
environmental contamination and costs of complying with the
Americans with Disabilities Act of 1990, as amended, and similar
laws, (v) interest rate increases, (vi) the possible failure of the
Company to maintain its qualification 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/20150126006368/en/
LaSalle Hotel PropertiesBruce A. Riggins or Kenneth G. Fuller,
301/941-1500
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