LaSalle Hotel Properties Announces Sale of Hotel Deca in Seattle, WA
February 01 2017 - 4:15PM
Business Wire
LaSalle Hotel Properties (NYSE: LHO) today announced it has sold
Hotel Deca in Seattle, Washington for $55.0 million to an affiliate
of AJ Capital Partners. The Company acquired the hotel in December
2005 for $26.4 million.
“Hotel Deca was an excellent long term investment for us,
generating an unleveraged IRR of 12.3 percent and an average
cash-on-cash yield of 8.8 percent over 11 years,” said Michael D.
Barnello, President and Chief Executive Officer of LaSalle Hotel
Properties.
Proceeds from the asset sale will be used for general corporate
purposes. The Company will not execute a 1031 exchange in
conjunction with the sale of Hotel Deca.
About LaSalle Hotel Properties
LaSalle Hotel Properties is a leading multi-operator real estate
investment trust. The Company owns 45 properties, which are
upscale, full-service hotels, totaling approximately 11,300 guest
rooms in 13 markets in nine 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 groups, including
Hilton Hotels Corporation, Marriott International, Outrigger
Lodging Services, Noble House Hotels & Resorts, Hyatt Hotels
Corporation, Benchmark Hospitality, Commune Hotels and Resorts,
Destination Hotels, Davidson Hotel Company, Kimpton Hotel &
Restaurant Group, LLC, Accor, 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," “may,” “plan,” “seek,” “should,” or similar expressions.
Forward-looking statements in this press release include, among
others, statements about the Company’s use of sale proceeds. 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 for
guests and meetings from other hotels and alternative lodging
companies, increases in wages, energy costs and other operating
costs, potential unionization or union disruption, 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, (ix)
the risk of a material failure, inadequacy, interruption or
security failure of the Company’s or the hotel managers’
information technology networks and systems, and (x) 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.
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version on businesswire.com: http://www.businesswire.com/news/home/20170201006083/en/
LaSalle Hotel PropertiesKenneth G. Fuller or Max D. Leinweber,
301-941-1500
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