LaSalle Hotel Properties (NYSE: LHO) today announced that it acquired the Chamberlain West Hollywood for $38.5 million. The 113-key all-suite hotel is located at 1000 Westmount Drive in West Hollywood, California.

LaSalle Hotel Properties;
The Chamberlain West Hollywood is located just off of Santa Monica Boulevard in the heart of West Hollywood, central to downtown Los Angeles, Beverly Hills, area beaches, the Sunset Drive Strip and Los Angeles International Airport. The property's West Hollywood neighborhood offers upscale dining, premium shopping and vibrant nightlife.

"We are excited about the purchase of the Chamberlain West Hollywood," said Michael D. Barnello, President and Chief Executive Officer of LaSalle Hotel Properties. "We are very familiar with the West Hollywood market and are pleased to expand our presence there. West Hollywood has been one of our strongest markets this year with occupancy at our hotels above 80 percent year-to-date through the third quarter."

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The building was originally constructed in 1970 as an apartment building, subsequently converted to an all-suite hotel and was later repositioned as the Chamberlain West Hollywood in 2005. From December 2009 to July 2010, the property underwent an extensive $4.5 million renovation including guestrooms, guest bathrooms, corridors, rooftop pool area and the lobby.

The Chamberlain features 113 spacious suites, each with a private balcony and a gas-log fireplace. The suites, which average over 500 square feet, also include such upscale amenities as 42-inch HD televisions with DVD players and iHome docking stations. The hotel restaurant, the Bistro at Chamberlain offers seating for 52 and features American and California cuisine. Additional amenities include a heated rooftop pool and a business center.

The hotel will be managed by Outrigger Lodging Services, which currently manages the Company's LeMontrose Suite Hotel, LeParc Suite Hotel, Grafton on Sunset and Hotel Amarano. The Chamberlain West Hollywood is centrally located to the Company's other West Hollywood hotels and will benefit from Outrigger's revenue and expense management practices.

"We are confident that the appointment of Outrigger as manager and the implementation of our asset management practices will create significant value for this asset," noted Mr. Barnello.

John Fitts, President and CEO of Outrigger Lodging Services said, "We are pleased to expand our relationship with LaSalle Hotel Properties and their outstanding team. We have enjoyed a long association with LaSalle and look forward to continuing to nurture these five unique hotels."

The property was purchased in an all-cash transaction. The Company expects to recognize total transaction expenses related to the Chamberlain West Hollywood of approximately $0.3 million during the fourth quarter.

LaSalle Hotel Properties is a leading multi-operator real estate investment trust owning 35 upscale full-service hotels, totaling over 9,100 guest rooms in 14 markets in 10 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, Sheraton Hotels & Resorts Worldwide, Inc., 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 and JRK Hotel Group, Inc.