Luxury Full-Service Hotel is Located in the Heart of Historic Downtown Boston
LaSalle Hotel Properties (NYSE:LHO) announced it has acquired the Onyx Hotel for approximately $28.6 million. The Onyx Hotel is an urban, luxury full-service hotel with 112 well-appointed guestrooms. The hotel opened in May 2004 and is located in historic downtown Boston in an up and coming area called Bullfinch Triangle, one block from the highly anticipated Rose Kennedy Greenway. The hotel is also three blocks from the Fleet Center (TD Banknorth Garden); Boston's premiere sports and entertainment venue and within a short walk of historical landmarks such as Faneuil Hall and Bunker Hill. The Onyx Hotel will continue to be managed by Kimpton Hotel & Restaurant Group, LLC, which also manages the Company's five DC Urban Collection hotels.
The Onyx Hotel opened in May 2004 and has already received AAA's Four Diamond rating for outstanding amenities and high-level services. The hotel offers wireless high-speed internet access throughout the hotel, as well as other amenities and services including the Ruby Room, a 45-seat bar and lounge serving breakfast and dinner, valet parking, 24-hour room service and complimentary weekday morning Town-car service.
The Bullfinch Triangle area is experiencing tremendous commercial and residential redevelopment due to the completion of the Central Artery/Tunnel Project ("Big Dig"), which resulted in the elimination of the raised highway and made a significant amount of site area available for development. The Rose Kennedy Greenway, a major project occurring one block from the Onyx Hotel, is a large park area currently being developed which is helping to recreate the Bullfinch Triangle area.
"We are very pleased to have acquired this newly constructed luxury urban property strategically located in downtown Boston," said Jon Bortz, Chairman and Chief Executive Officer of LaSalle Hotel Properties. "The Onyx Hotel's location benefits from Boston's financial, entertainment and historic centers, making the hotel's downtown Boston location attractive for both business and leisure travelers. Given Boston's already strong occupancy levels in the mid-70s, the city should continue to provide the opportunity to grow ADR. The strength of the market should also allow the Onyx Hotel, which has been open for only one year, to grow rate and occupancy to stabilized levels over the next couple of years."
The hotel will continue to be managed by Kimpton Hotel & Restaurant Group, LLC, which also manages the Company's DC Urban Collection, which consists of the Topaz Hotel, Hotel Madera, Hotel Rouge, Hotel Helix and Hotel George. Kimpton operates upscale urban hotels in the U.S. and Canada and has had a strong relationship with LaSalle since 2001.
"We are excited to expand our long-standing relationship with Kimpton," continued Mr. Bortz. "They are very knowledgeable of the unique urban hotel market and have substantial experience operating distinctive independent properties like the Onyx Hotel and our DC Urban Collection."
Thomas LaTour, Chairman and CEO of Kimpton said, "Kimpton values its association with LaSalle Hotel Properties. They understand what Kimpton strives to achieve with each hotel and supports our company initiatives. The Onyx Hotel continues to show excellent growth potential as a top-performing urban hotel in the Kimpton portfolio. We are confident that LaSalle Hotel Properties' support will ensure the property's success."
The impact of the Onyx Hotel acquisition will not affect the Company's per share outlook that was provided on April 20, 2005 due to the early ramp-up of the hotel's performance in 2005. As a result, the Company's 2005 per share outlook remains unchanged.
Logos, product and company names mentioned are the property of their respective owners.
