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 LaSalle Hotel Properties Announces Sale of the Chicago Marriott Downtown; 
Company to Recognize Gain of Approximately $38 Million 
BETHESDA, Md. - March 27, 2006 -- LaSalle Hotel Properties (NYSE:LHO) today announced that Chicago 540, LLC, a joint venture with The Carlyle Group, closed on the sale of the Chicago Marriott Downtown for $295 million plus approximately $11 million of other consideration. The hotel was purchased by the joint venture in 2000 for $175 million. LaSalle Hotel Properties will recognize an approximate gain of $38 million including its preferred distribution of approximately $25 million resulting in a leveraged internal rate of return ("IRR") of approximately 47% for the six year hold period. The preferred distribution to LHO is a result of The Carlyle Group achieving a leveraged IRR on their investment above the stated return thresholds in the partnership agreement.

LaSalle Hotel Properties is a leading multi-tenant, multi-operator real estate investment trust, owning 28 upscale and luxury full-service hotels, totaling approximately 8,400 guest rooms in 15 markets in 11 states and the District of Columbia. 

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
Hans Weger

Also See: The 1,176-room Chicago Marriott Downtown Acquired by The Carlyle Group and LaSalle Hotel Properties / Jan 2000
The 1,192-room Marriott Hotel in Downtown Chicago Is for Sale / Oct 2002

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