LaSalle Hotel Properties Wraps $93M Sale of Hilton Alexandria Old Town
The Bethesda-based REIT, which announced the sale earlier this month, acquired the 246-key hotel in 2004 for $59 million.
By Scott Baltic, Contributing Editor
LaSalle Hotel Properties has completed its $93.4 million sale of the Hilton Alexandria Old Town in Alexandria, Va., the firm announced Tuesday. LaSalle said earlier this month that the hotel was under contract. The Bethesda. Md.-based REIT acquired the asset in May 2004 for $59 million.
The buyer was not identified, and LaSalle did not respond to Commercial Property Executive’s request for further information. Speculation in the business press has mentioned Walton Street Capital or Lodging Capital Partners L.L.C. as possible buyers.
The Hilton Alexandria Old Town has 246 guest rooms, including 16 executive-and-better suites, and also features a restaurant and lounge and 7,600 square feet of flexible event space. Its location at 1767 King St. is adjacent to the King Street–Old Town station on the Washington Metro’s Blue and Yellow lines.
Substantial renovations at the hotel were completed in January. According to an SEC filing in late April, LaSalle completed $16.4 million worth of renovations at four of its hotels, among them the Hilton Alexandria Old Town, in the first quarter.
“The Hilton Alexandria Old Town was a wonderful long-term investment for us,” Michael Barnello, LaSalle’s president & CEO, said in a statement. “The asset delivered an unleveraged IRR of 13.5 percent over 10-plus years.”
LaSalle will use proceeds from the sale to reduce borrowings on its senior unsecured credit facility and redeem the remaining $58.7 million of 7.25 percent Series G Preferred Shares.
LaSalle Hotel Properties currently owns 45 upscale, full-service hotels totaling about 11,300 guest rooms and representing numerous flags and brands.
