for approximately $51.5 million
BETHESDA, Md. - Sept. 28, 2006 -- LaSalle Hotel Properties (NYSE:LHO) today announced that has executed a contract to acquire the Holiday Inn Wall Street for approximately $51.5 million. The 138-room, urban, full-service hotel is located at 15 Gold Street in the heart of Manhattan's Financial District. The acquisition of the hotel is subject to customary and several non-customary closing conditions, including the departure of the existing restaurant tenant, and the Company makes no assurances that any of the closing conditions will be satisfied or that this acquisition will close on the terms negotiated or at all. Assuming satisfaction of the closing conditions, the Company anticipates the closing will occur in the fourth quarter of 2006.
The aggregate consideration for the hotel, excluding expenses, consists of the assumption of an approximately $20.0 million first mortgage on the hotel and the issuance by the Company's operating partnership of approximately $3.0 million in class A common partnership units and approximately $28.5 million in aggregate liquidation value of series F preferred partnership units. The series F preferred units will be a newly-created series of preferred units bearing a quarterly distribution on the liquidation value based on a floating rate equal to LIBOR plus 150 basis points.
LaSalle Hotel Properties is a leading multi-tenant, multi-operator real estate investment trust, owning interests in 30 upscale and luxury full-service hotels, totaling approximately 8,700 guest rooms in 15 markets in 11 states and the District of Columbia. The Company focuses on owning upscale and luxury full-service hotels located in urban, resort and convention markets. LaSalle Hotel Properties seeks to grow through strategic relationships with premier internationally recognized hotel operating companies, including Westin Hotels and Resorts, Sheraton Hotels & Resorts Worldwide, Inc., Crestline Hotels and Resorts, Inc., Outrigger Lodging Services, Noble House Hotels & Resorts, Hyatt Hotels Corporation, Benchmark Hospitality, White Lodging Services Corporation, Gemstone Resorts International, LLC, Thompson Hotels, Sandcastle Resorts & Hotels, Davidson Hotel Company, and the Kimpton Hotel & Restaurant Group, LLC.
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.
LaSalle Hotel Properties
|Also See:||LaSalle Hotel Properties Reports 2nd Qtr Earnings Up 79% to $18.4 million, Compared to $10.3 million in the Prior-year Period / July 2006|
|Manhattan Lodging Report / Hotel Transactions & Developments / Ernst & Young LLP / Jan 2000|