Hilton Alexandria Old Town for $59 million;
Sandcastle Resorts & Hotels Named Manager
|LaSalle Hotel Properties Acquires the Hilton
Alexandria Old Town Hotel; Sandcastle Resorts & Hotels Named Manager
of 241-room Upscale Full-Service Urban Hotel
BETHESDA, Md. - May 28, 2004 -- LaSalle Hotel Properties (NYSE:LHO)
today announced it has acquired the Hilton Alexandria Old Town for $59.0
million. The 241-room upscale full-service hotel is located in the heart
of historic downtown Alexandria, Virginia, one of the most vibrant markets
in the Washington, D.C. region. The hotel will continue to be operated
pursuant to a Hilton franchise agreement and will be managed by Sandcastle
Resorts & Hotels, the current manager of the hotel. The transaction
was funded utilizing the Company's senior unsecured credit facility.
The acquisition also marks the first Hilton franchised property acquired by LaSalle, which adds to the Company's diverse collection of upscale hotel brands at its owned properties including Westin, Sheraton, Marriott, and Hyatt.
"We are excited to add the Hilton brand to our distinct group of internationally renowned brands," said Mr. Bortz. "The strength of the Hilton flag and reservation system is another compelling factor that makes the Hilton Alexandria an attractive investment for the Company."
The hotel will continue to be managed by Sandcastle Resorts & Hotels, which developed and has managed the property since its opening in February 2000.
"We are very excited to develop a relationship with LaSalle Hotel Properties," said Frank L. Flautt, Jr., Chairman and Chief Executive Officer of Sandcastle Resorts & Hotels. "We are pleased to bring our tremendous experience and knowledge of operating Hilton franchised hotels to LaSalle's growing portfolio."
Alexandria is home to an energetic commercial community, one of the largest concentrations of association headquarters in the country and several U.S. government agencies, including the new 2.4 million square foot U.S. Patent & Trademark Office. The Hilton Alexandria Old Town is located just three blocks from this new five-building complex, which is scheduled to be fully operational by early 2005. Since 1988, Alexandria has experienced unprecedented growth. Today, the Old Town historic district is known for its array of museums, historic buildings and architecture, special events, as well as distinctive shops and restaurants. Additionally, the hotel is only minutes away from Ronald Reagan Washington National Airport and numerous other commercial and leisure attractions, and just six miles south of downtown Washington, D.C.
In addition to metropolitan Washington, D.C.'s healthy and expanding business environment, the area has also witnessed a resurgence in tourism. The District and its surrounding suburbs provide some of the richest culture and entertainment the United States has to offer. Attractions such as the U.S. Capitol, various monuments, memorials, and regional cultural experiences like Mount Vernon and Old Town Alexandria draw a significant amount of leisure visitors, both domestic and international.
Sandcastle Resorts & Hotels, based in Destin, Florida, manages six hotels and resorts totaling approximately 1,700 guest rooms throughout the southeast United States. The company operates hotels under the brands of Hilton, Marriott, Holiday Inn Express, and Hawthorn Suites.
LaSalle Hotel Properties is a leading multi-tenant, multi-operator real estate investment trust, which owns interests in 19 upscale and luxury full-service hotels, totaling approximately 6,400 guest rooms in 14 markets in 11 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 Acquires the Hotel George for $24.1 million; Kimpton Group Named Manager / September 2003|
|LaSalle Hotel Properties Acquires the 296-room Lansdowne Resort for $115.8 million; Benchmark Hospitality Continues as Manager / June 2003|