LaSalle Hotel Properties (NYSE: LHO) today announced that it has entered into a definitive contract to sell Hotel Viking in Newport, Rhode Island for $77 million. The Company expects the transaction to close this week. The Company acquired the hotel in June, 1999 for $27 million.
"Hotel Viking was an excellent long term investment for us," said Michael D. Barnello, President and Chief Executive Officer of LaSalle Hotel Properties. "Upon closing, the asset will have delivered an unleveraged IRR of 10.7 percent and an average cash-on-cash yield of 8.6 percent over 15 years."
Proceeds from the transaction will be used to reduce borrowings on the Company's Senior Unsecured Credit Facility. In conjunction with the sale of Hotel Viking, the Company is executing a reverse 1031 exchange with Hotel Vitale, which it purchased during April, 2014.
LaSalle Hotel Properties is a leading multi-operator real estate investment trust. When this transaction closes, the Company will own 44 hotels. The properties are upscale, full-service hotels, totaling more than 11,100 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, Commune Hotels and Resorts, 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, Highgate Hotels and Access Hotels & Resorts.
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