LaSalle Hotel Properties has closed on the sale of two of its hotel properties and is currently under contract to sell a third for a total of $218.9 million. The company has sold the Lansdowne Resort for $133.0 million, which it acquired in June 2003 for $115.8 million. The second sale, the Alexis Hotel, sold for $71.6 million. The company acquired the hotel in June 2006 for $38 million. The as yet closed property, Hotel Triton, is under contract for $14.25 million, a deal the firm expects to close in April 2017. LaSalle 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.
