LaSalle Hotel Properties Acquires the Holiday Inn Manhattan Wall Street District in New York City
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LaSalle Hotel Properties Acquires the Holiday Inn Manhattan Wall Street District in New York City
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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 2006-11-20
LaSalle Hotel Properties (NYSE:LHO) today announced it has acquired the Holiday Inn Manhattan Wall Street District for approximately $50.5 million. The 138-room, urban, full-service hotel is located at 15 Gold Street in the heart of Lower Manhattan's Financial District.
The Holiday Inn Manhattan Wall Street District is ideally located in close proximity to a variety of business and leisure demand generators in lower Manhattan including the South Street Seaport Historic District, Battery Park, the New York Stock Exchange, the Federal Reserve Bank and the Wall Street Financial District. Lower Manhattan has experienced tremendous commercial and residential development recently that is transforming this area into a 24/7 urban community.
"We are very excited about the future prospects for the Lower Manhattan market," said Jon Bortz, Chairman and Chief Executive Officer of LaSalle Hotel Properties. "New York City continues to be one of the strongest markets in the country with the highest ADR, significant barriers to entry and favorable supply and demand fundamentals. Additionally, Lower Manhattan continues a robust recovery from the events five years ago."
Over the next 18 months, the hotel will undergo a significant renovation, during which time the hotel will remain open and be operated by an independent third party manager under the current Holiday Inn flag. Upon completion of the renovation, the hotel will be repositioned as a luxury high-style independent hotel with a total investment of approximately $60.0 million including acquisition price, renovation costs, closing costs and lease termination costs.
The aggregate consideration for the hotel, excluding expenses, consists of the assumption of an approximately $20.0 million first mortgage secured by the hotel and the issuance by the Company's operating partnership of approximately $3.0 million in class A common partnership units and approximately $27.5 million in aggregate liquidation value of series F preferred partnership units. The series F preferred units pay a quarterly distribution on the liquidation value based on a floating rate equal to LIBOR plus 150 basis points.
LaSalle Hotel Properties is a leading multi-tenant, multi-operator real estate investment trust, owning 31 upscale and luxury full-service hotels, totaling approximately 8,900 guest rooms in 15 markets in 11 states and the District of Columbia. The Company focuses on owning upscale and luxury 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, Sheraton Hotels & Resorts Worldwide, Inc., Hilton Hotels Corporation, Crestline Hotels and Resorts, Inc., Outrigger Lodging Services, Noble House Hotels & Resorts, Hyatt Hotels Corporation, Benchmark Hospitality, White Lodging Services Corporation, Gemstone Resorts International, LLC, Thompson Hotels, Sandcastle Resorts & Hotels, Davidson Hotel Company, and the Kimpton Hotel & Restaurant Group, LLC.
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