LaSalle Hotel Properties Acquires the Holiday Inn Downtown in DC; $21 Million Renovation and Repositioning Planned
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LaSalle Hotel Properties Acquires the Holiday Inn Downtown in DC; $21 Million Renovation and Repositioning Planned
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Category: North America & West Indies / Carribean islands
This is a press release selected by our editorial committee and published online for free on 2005-12-19
LaSalle Hotel Properties (NYSE: LHO) today announced it has acquired the Holiday Inn Downtown in Washington, DC for $44.6 million. The Holiday Inn Downtown is an urban, full-service hotel with 212 guestrooms. The hotel is located in the heart of the business district of downtown Washington, DC.
The Company anticipates investing over $21 million in a renovation and repositioning similar to those performed on the Company's DC Urban Collection purchased in March 2001. After completion of the renovation and repositioning in early 2007, the hotel will be operated as a luxury high-style, independent hotel. The Holiday Inn affiliation was ended in conjunction with the acquisition.
"The DC market continues to be one of the strongest markets in the nation due to government related travel, tourism and associations that generate year-round revenues," remarked Jon Bortz, Chairman and Chief Executive Officer of LaSalle Hotel Properties. "Upon completion of the renovation and repositioning program, the hotel will be a great addition to our DC Collection. The hotel is at the center of many demand generators and will benefit from being one of the premier luxury assets in Washington, DC."
The full-service hotel features 28 king corner suites, rooftop pool, restaurant and bar, fitness center and below grade parking. The hotel is located five blocks from the White House and in close proximity to the Washington Convention Center, MCI Center, Smithsonian Museums, Union Station and Reagan National Airport.
LaSalle Hotel Properties is a leading multi-tenant, multi-operator real estate investment trust, owning interests in 26 upscale and luxury full-service hotels, totaling approximately 8,300 guest rooms in 15 markets in 11 states and the District of Columbia. The Company focuses on investing in upscale and luxury full-service hotels located in urban, resort and convention markets. LaSalle Hotel Properties seeks to grow through strategic relationships with premier 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, Hilton Hotels Corporation, Benchmark Hospitality, White Lodging Services Corporation, 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. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with these safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe the Company's future plans, strategies and expectations, are generally identifiable by use of the words "believe," "expect," "intend," "anticipate," "estimate," "project" or similar expressions. Forward-looking statements in this press release include, among others, statements about strength of the DC market, a renovation and repositioning program and a premier DC hotel. You should not rely on forward-looking statements since they involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond the Company's control and which could materially affect actual results, performances or achievements. Factors that may cause actual results to differ materially from current expectations include, but are not limited to, (i) the Company's dependence on third-party managers of its hotels, including its inability to implement strategic business decisions directly, (ii) risks associated with the hotel industry, including competition, increases in wages, energy costs and other operating costs, actual or threatened terrorist attacks, downturns in general and local economic conditions and cancellation of or delays in the completion of anticipated demand generators, (iii) the availability and terms of financing and capital and the general volatility of securities markets, (iv) risks associated with the real estate industry, including environmental contamination and costs of complying with the Americans with Disabilities Act and similar laws, (v) interest rate increases, (vi) the possible failure of the Company to qualify as a REIT and the risk of changes in laws affecting REITs, (vii) the possibility of uninsured losses, and (viii) the risk factors discussed in the Company's Annual Report on Form 10-K. Accordingly, there is no assurance that the Company's expectations will be realized. Except as otherwise required by the federal securities laws, the Company disclaims any obligation or undertaking to publicly release any updates or revisions to any forward-looking statement contained herein (or elsewhere) to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.
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