LaSalle Hotel Properties Acquires Westin Michigan Avenue Hotel and House of Blues Hotel in Chicago, Illinois
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LaSalle Hotel Properties Acquires Westin Michigan Avenue Hotel and House of Blues Hotel in Chicago, Illinois
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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 2006-03-02
LaSalle Hotel Properties (NYSE:LHO) today announced it has acquired the Westin Michigan Avenue Hotel for $214.7 million and the House of Blues Hotel and related Marina City retail and parking facilities for $114.5 million. The properties were purchased in separate and unrelated transactions.
"We are excited about these new investments and expanding our already geographically diverse portfolio with two AAA Four Diamond downtown Chicago hotels," said Jon Bortz, Chairman and Chief Executive Officer of LaSalle Hotel Properties. "Chicago is one of the top hotel markets in the nation with thriving demand generators, low near-term supply growth, a 24-hour downtown and a diversified commercial base. The expansion of the McCormick Place Convention Center in 2007 by over 800,000 square feet should also add further demand growth."
Westin Michigan Avenue Hotel
The AAA Four Diamond, full-service hotel is located in the heart of Chicago's Magnificent Mile neighborhood, the city's premier shopping and residential district. The 751 guestroom hotel includes underground parking, 3 retail stores, a beauty salon and a full-service restaurant. The hotel also offers guests 23 suites, 37,700 square feet of meeting space, a gift shop and a WestinWORKOUT(R) fitness center. The Westin Michigan Avenue is in close proximity to Chicago's major demand generators, including McCormick Place Convention Center, numerous Fortune 500 corporate headquarters, Navy Pier, professional sports venues and other leisure attractions. The property will continue to be managed by Starwood Hotels & Resorts Worldwide, Inc.
"We are extremely pleased to acquire this premier Chicago hotel managed by Starwood," said Mr. Bortz. "This marks the fourth Starwood managed asset in our portfolio and we look forward to growing this relationship in the future and improving this hotel."
House of Blues Hotel
The AAA Four Diamond, full-service hotel is located at 329 N. Dearborn, along the Chicago River, in the River North area, and is part of the Marina City mixed-use development. The 367-room hotel includes 34 suites and 333 guestrooms uniquely decorated with a mix of Gothic, Moroccan and East Indian influences using rich vibrant colors, patterns and finishes. Hotel guests can enjoy VIP access to the adjacent House of Blues music hall and restaurant.
The acquisition includes over 115,000 square feet of retail and restaurant space at Marina City and 896 parking spaces encompassing the first 17 floors of the two adjacent Marina City residential towers. Major retail tenants include Smith & Wollensky Steakhouse, Crunch Gym, BIN 36 Restaurant, 10Pin Bowling Lounge and Bank One. The hotel will be managed by Gemstone Resorts International, LLC, a new relationship for LaSalle Hotel Properties. Gemstone Resorts International is a management company specializing in unique high-style hotels and resorts.
"Gemstone is the perfect operator for this distinctive urban hotel," remarked Mr. Bortz. "Their creativity and innovative strategies, as evidenced by the very successful Hotel ZaZa in downtown Dallas and other Gemstone operated properties, will aid us in developing a new vision and positioning for the House of Blues Hotel."
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