LaSalle Hotel Properties has sold two hotel assets and is under contract to sell a third hotel for a combined $218.9 million of proceeds:
• Lansdowne Resort, in Leesburg, VA, for $133.0 million. LHO acquired the resort in June 2003 for $115.8 million.
• Alexis Hotel, in Seattle, for $71.6 million. LHO acquired the hotel in June 2006 for $38.0 million.
• Hotel Triton, in San Francisco, is under contract for $14.25 million. The Company expects the sale to close in April 2017. LHO acquired the hotel in August 2013 for $10.9 million.
LHO will use proceeds from the asset sales to redeem the $68.8 million outstanding of 7.5 percent Series H Preferred Shares and for general corporate purposes. The Preferred Share redemption will close on May 4, 2017.
“Including the sale of Hotel Deca in January and the upcoming sale of Hotel Triton, we will have sold four assets in 2017 for a combined $273.9 million at an average 6.5 percent trailing cap rate. Pro forma for the four transactions, we have $408.6 million of cash on hand and complete availability on our credit facilities. We are in an excellent position to redeploy this capital as opportunities arise, including the upcoming redemption of our 7.5 percent Series H Preferred Shares,” said Michael D. Barnello, President and Chief Executive Officer of LaSalle Hotel Properties.
LaSalle Hotel Properties is a leading multi-operator real estate investment trust. After the sale of Hotel Triton, the Company will own 42 hotels. The properties are upscale, full-service hotels, totaling approximately 10,700 guest rooms in 11 markets in seven states and the District of Columbia. LHO focuses on owning, redeveloping and repositioning upscale, full-service hotels located in urban, resort and convention markets.