Lasalle Hotel Properties acquires hotel Palomar, Washington, DC (United States)
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Lasalle Hotel Properties acquires hotel Palomar, Washington, DC (United States)
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Category: North America & West Indies / Carribean islands - United States - Industry economy
- Group or hotel buyout
This is a press release selected by our editorial committee and published online for free on 2012-03-13
LaSalle Hotel Properties (NYSE: LHO) today announced the acquisition of Hotel Palomar, Washington, DC for $143.8 million in an off-market transaction. The 335- room urban, full service hotel is located near Dupont Circle at 2121 P Street, NW. As disclosed in its fourth quarter 2011 earnings release, the Company sold common shares through its ATM program during January and February, 2012, resulting in proceeds of $46.6 million. The purchase of Hotel Palomar, Washington, DC was funded with the $46.6 million in proceeds from the ATM program and borrowings from the Company’s senior unsecured credit facility.
Hotel Palomar, Washington, DC is located just one block from Dupont Circle and Embassy Row. The property is within walking distance of the West End and numerous offices near Farragut Square and Connecticut Avenue. Also within walking distance, are George Washington University, Georgetown University and the high-end shopping and dining offerings of the Georgetown neighborhood. As such, Hotel Palomar attracts demand from various sources, including corporate, legal and leisure as well as business from the nearby universities and embassies. The asset is located just around the corner from the Company’s Hotel Madera and a few blocks from Topaz Hotel. The property will continue to be managed by the Kimpton Hotel and Restaurant Group, LLC.
“We are very excited about the acquisition of Hotel Palomar, Washington, DC,” said Michael D. Barnello, President and Chief Executive Officer of LaSalle Hotel Properties. “We are very familiar with the excellent location of this asset through our ownership of several other hotels in the neighborhood. The hotel is in great physical condition and offers several attractive amenities. With the acquisition of this hotel, Kimpton now manages 10 of our assets and we are excited to build upon this relationship.”
Hotel Palomar, Washington, DC features 335 guestrooms with an average size of 436 square feet. The guestrooms include 26 suites, which average more than 600 square feet. The property’s flexible meeting and function space totals 11,000 square feet. The hotel’s restaurant, Urbana Restaurant and Wine Bar, seats 173 and is open for breakfast, lunch and dinner seven days a week. The adjoining Chef’s Table is a private dining space for up to 12 guests. Additionally, the hotel offers a heated outdoor pool and sundeck, a 24-hour fitness center and a business center.
The building was originally constructed in 1962. In 2006, the seller (a Kimpton-sponsored discretionary equity fund) invested $38.0 million in renovations and opened the hotel as the repositioned Hotel Palomar, Washington, DC.
Revised 2012 Outlook
The Company is updating its 2012 outlook to include the acquisition of Hotel Palomar, Washington, DC. The revised outlook assumes no additional acquisitions or equity issuance for the remainder of 2012. The Company’s revised financial expectations for 2012 are as follows:
Previous Revised
Low-end High-end Low-end High-end
($'s in millions except per share/unit data) ($'s in millions except per share/unit data)
Adjusted EBITDA $ 250.0 $ 263.0 $ 259.6 $ 272.6
Adjusted FFO $ 164.0 $ 175.0 $ 170.7 $ 181.7
Adjusted FFO per diluted share/unit $ 1.92 $ 2.05 $ 2.00 $ 2.12
About LaSalle Hotel Properties
LaSalle Hotel Properties is a leading multi-operator real estate investment trust owning 38 upscale full-service hotels, totaling over 10,100 guest rooms in 13 markets in 9 states and the District of Columbia. The Company focuses on owning, redeveloping and repositioning upscale full-service hotels located in urban, resort and convention markets. LaSalle Hotel Properties seeks to grow through strategic relationships with premier lodging companies, including Westin Hotels and Resorts, Hilton Hotels Corporation, Outrigger Lodging Services, Noble House Hotels & Resorts, Hyatt Hotels Corporation, Benchmark Hospitality, White Lodging Services Corporation, Thompson Hotels, Sandcastle Resorts & Hotels, Davidson Hotel Company, Denihan Hospitality Group, the Kimpton Hotel & Restaurant Group, LLC, Accor, Destination Hotels & Resorts, HEI Hotels & Resorts, JRK Hotel Group, Inc., Viceroy Hotel Group and Highgate Holdings.
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