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.


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.


“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.


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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