LaSalle Hotel Properties Acquires the Le Parc Suite Hotel in West Hollywood, California
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LaSalle Hotel Properties Acquires the Le Parc Suite Hotel in West Hollywood, California
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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 2006-01-31
LaSalle Hotel Properties (NYSE:LHO) today announced it has acquired the Le Parc Suite Hotel in West Hollywood, California, for $47.0 million. The independent upscale hotel features 154 spacious suites and is located within a serene and quiet neighborhood in the heart of West Hollywood, near Melrose Avenue and La Cienega Boulevard, just minutes from Sunset and Santa Monica Boulevards. The Le Parc Suite Hotel will continue to be managed by Outrigger Lodging Services ("OLS"), which manages the Company's Le Montrose Suite Hotel and the Grafton on Sunset, also located in West Hollywood.
The beautifully appointed guest suites range from 650 to 950 square feet and include a private balcony, living area, dining area, kitchenette and fireplace. The hotel features a rooftop pool with cabanas, tennis court, whirlpool and spectacular views of the Hollywood Hills and downtown Los Angeles. The hotel's restaurant, Knoll at Le Parc, was recently renovated and serves award-winning American cuisine. Other amenities include a full service fitness facility and a business center.
"We are excited to acquire this premier West Hollywood hotel," remarked Jon Bortz, Chairman and Chief Executive Officer of LaSalle Hotel Properties. "The asset is centrally located among Hollywood, downtown Los Angeles, Beverly Hills, area beaches and the Los Angeles International Airport. The hotel's multitude of amenities, unique and spacious accommodations and convenient location make it an attractive option for leisure and business travelers."
"We are delighted to expand our long standing relationship with Outrigger Lodging Services, which dates back to the acquisition of Le Montrose in 1994," continued Mr. Bortz. "OLS is very knowledgeable of the unique West Hollywood hotel market and has substantial experience operating distinctive properties like Le Parc, Grafton on Sunset and Le Montrose. The West Hollywood market continues to be very strong with occupancies in the upper 70s that allow for significant ADR growth; and with limited supply growth, the market should continue to be attractive."
John Fitts, President and CEO of OLS said, "We are pleased to expand our relationship with LaSalle Hotel Properties and their outstanding team. We have enjoyed a long association with LaSalle and look forward to continuing to nurture these three unique hotels."
The $47.0 million purchase price includes the Company's assumption of a $15.7 million loan secured by the hotel with a fixed annual interest rate of 7.78%. The impact of the Le Parc acquisition was included in the Company's 2006 outlook provided on January 13, 2006. As a result, the Company's 2006 outlook remains unchanged.
Outrigger Lodging Services, located in Encino, California, owns and operates hotels throughout the United States. The firm is associated with Outrigger Hotels & Resorts, headquartered in Hawaii, which owns and manages more than 40 hotels and resorts throughout Hawaii and the Pacific Rim. OLS currently operates, or has operated, a full range of hotel products, including Marriott, Sheraton, Hilton, Residence Inn, Holiday Inn, Radisson, as well as many limited-service brands. In addition to branded hotels, OLS currently operates upscale boutique hotels providing creative management and sales support to ensure they are able to compete successfully against branded competition. OLS has grown rapidly by providing aggressive and professional management for private investors and institutional owners. OLS is owned jointly by Outrigger Hotels & Resorts and John Fitts, President/CEO, a veteran hotelier with 38 years of experience in the lodging industry.
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