Company to Recognize Gain of Approximately $38 Million
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
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
|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|