WEST HOLLYWOOD, CA-Maryland-based hotel REIT LaSalle HotelProperties has acquired its fourth West Hollywood property, theChamberlain West, for $38.5 million in an all-cash transaction.LaSalle bought the 113-key all-suite hotel at 1000 Westmount Dr.from Abington Holding Co., according to industry sources.

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Michael D. Barnello, president and CEO of LaSalle, said that theREIT is “very familiar with the West Hollywood market,” a themethat was also sounded in a research report from Milwaukee-basedRobert W. Baird & Co., which reiterated its outperform ratingand $28 price target for LaSalle’s shares following the acquisitionof the Chamberlain West Hollywood.

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“The property is located just off Santa Monica Boulevard andcaters mainly to the music and entertainment industry,” Bairdanalysts David Loeb, Andrew Wittmann and Michael Bellisario said inthe report. “Approximately 90% of the customers in the WestHollywood market are transient. A $4.5 million renovation wascompleted in July and management does not expect to spend any moneyon capital improvements in the near term. Outrigger LodgingServices, manager of LaSalle's other four Los Angeles-area hotels,will also manage the Chamberlain, which should help with revenuemanagement and margins, in our view,” the Baird report said.

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Barnello said that West Hollywood has been one of LaSalle’sstrongest markets this year with occupancy at above 80%year-to-datw through the third quarter. The building was originallyconstructed in 1970 as an apartment building, subsequentlyconverted to an all-suite hotel and was later repositioned as theChamberlain West Hollywood in 2005.

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