(formerly Le Meridien New Orleans) for $91.5 million
|BETHESDA, Md., Apr 21, 2003 - LaSalle Hotel
Properties (NYSE:LHO) today announced the sale of the 494-room New Orleans
Grande Hotel. The sale price was $92.5 million with net proceeds of $91.5
million. The proceeds were comprised of $46.7 million in debt assumed by
the new buyer plus $44.8 million of cash. This represents a $37.2 million
gain on sale. In conjunction with the sale of the New Orleans property,
and the assumption of debt by the purchaser, the Company will recognize
a $0.8 million non-cash expense in the second quarter relating to the early
disposition of debt associated with the hotel. The seller was represented
by Hodges Ward Elliott of Atlanta, Georgia.
The Company currently anticipates redeploying the proceeds from the sale of the New Orleans Grande Hotel through an Internal Revenue Code Section 1031 like-kind exchange ("1031-Exchange"). As a result, net cash proceeds from the sale will be held in an escrow account until a property(ies) is purchased through the 1031-Exchange. However, there can be no assurance that acquisition of a new property or properties will occur. If the Company fails to identify a like-kind replacement property(ies) of comparable value within 45 days of the date of sale and/or fails to acquire such property(ies) within 180 days of the date of sale, the Company will be required to pay out a capital gain distribution up to the amount of its net gain on the sale of the asset or pay a capital gains tax on such gain. The amount of the capital gain distribution will vary based on partial deployment, if any, of the net sale proceeds, other distributions made by the Company throughout the year, taxable income and other business events which may or may not be under management's control.
LaSalle Hotel Properties is a leading multi-tenant, multi-operator self managed real estate investment trust ("REIT"), which owns 16 upscale and luxury full-service hotels, totaling approximately 5,300 guest rooms in 12 markets in 10 states and the District of Columbia.
Certain matters discussed in this press release may be deemed to be forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.
LaSalle Hotel Properties
|Also See:||LaSalle Hotel Properties Removes Le Meridien from New Orleans Hotel; Interstate to Manage the Renamed New Orleans Grande Hotel / Dec 2002|
|LaSalle Hotel Properties Reports Net Loss of $3.7 million for 4th Qtr 2003; RevPAR Down 4.8% for the Year Hotel Operating Statistics / Feb 2003|