SANTA MONICA, CA-LaSalle Hotel Properties of Bethesda, MD has acquired the leasehold interest in the 162-room Viceroy hotel on Ocean Avenue for $80.1 million, according to an announcement from the Maryland-based firm. The Viceroy Santa Monica is subject to a ground lease with the City of Santa Monica, which expires on Sept. 25, 2065.

Viceroy Hotel Group will continue to manage the property, which LaSalle bought in an all-cash transaction. The property originally opened as the Pacific Shores Hotel in 1967 and re-opened in 2002 as the Viceroy Santa Monica following a $20.3 million renovation. Its 162 guest rooms, include 18 suites, and the property also includes a restaurant, a bar, and 2,000 square feet of meeting space.

Michael D. Barnello, president and CEO of LaSalle Hotel Properties, cited the hotel's location, one block from Santa Monica Beach, as one of the reasons that the REIT sought the investment. It is also near the Santa Monica Pier, the Main Street shopping district and the Third Street Promenade, he noted in the announcement.

LaSalle owns 35 full-service hotels totaling over 8,700 guest rooms in 13 markets in nine states and the District of Columbia. Another Bethesda, MD-based hotel REIT, Pebblebrook Hotel Trust, also acquired a hotel in Santa Monica that is managed by the Viceroy Hotel Group, the Sheraton Delfina Santa Monica Hotel. That deal, which closed late last year for $103 million, at the time was the biggest hotel sale in both L.A. County and California for 2010. Pebblebrook said at the time that it planned to spend $9 million in guest room refurbishments and public area enhancements, with the work expected to begin within the next 18 months.