LaSalle Sells Hotel Portfolio for $219M

By Mihaela Coste

LaSalle Hotel Properties has recently closed the sale of two hotels and is under contract to sell the third one for the total combined amount of $218.9 million. The assets, Lansdowne Resort, Alexis Hotel and Hotel Triton, are in Lansdowne, Va., Seattle and San Francisco, respectively.

Located in Lansdowne along the Potomac River, 30 miles west of Washington, the AAA Four Diamond award-winning Lansdowne Resort was sold for $133 million. LaSalle acquired the property in June 2003 for $115.8 million. The hotel features 296 renovated guest rooms, a golf club, spa, one indoor lap pool and four outdoor pools, business and fitness center and four restaurants. The property also boasts over 55,000 square feet of meeting space, a 9,525-square-foot ballroom and a 120-seat amphitheater.

LaSalle acquired Alexis Hotel in June 2006 for $38 million and sold it recently for $71.6 million, its value increasing by more than 80 percent in the past years. Located in downtown Seattle, the asset features suites up to 1,000 square feet, on-site fitness center, in-room spa services, overnight valet parking and dining and drinking possibilities at the Bookstore Bar & Café.

Hotel Triton is under contract for $14.25 million and the company expects to close the sale in April 2017. LaSalle acquired the asset for $10.9 million in August 2013. Located in downtown San Francisco, the hotel opened its doors in 2013 and features 140 guest rooms. Amenities include a business space and a creative area with art exhibits featuring the works of local artists.

The company will use the proceeds from the transactions to redeem the $68.8 million outstanding of 7.5 percent Series H Cumulative Redeemable Preferred Shares and for general corporate purposes. The Preferred Share redemption will close on May 4, 2017.

Including the sale of Hotel Deca in January and the upcoming sale of Hotel Triton, we will have sold four assets in 2017 for a combined $273.9 million at an average 6.5 percent trailing cap rate. Pro forma for the four transactions, we have $408.6 million of cash on hand and complete availability on our credit facilities. We are in an excellent position to redeploy this capital as opportunities arise, including the upcoming redemption of our 7.5 percent Series H Preferred Shares, said Michael Barnello, president & CEO of LaSalle Hotel Properties, in a prepared statement.

Images courtesy of Alexis Hotel, Hotel Triton and Lansdowne Resort