BETHESDA, MD-Like many REITs, LaSalle Hotel Properties has been on an acquisition spree. Now the company--again following the same well-trodden path as other REITs--is turning to the equity markets for additional funding, but not just for general acquisition purposes. Rather, the primary reason behind its sale of seven million common shares, CEO Michael Barnello tells GlobeSt.com, is to fund the $400-million purchase of a hotel it is currently negotiating for.

Barnello declines to disclose the name of the hotel or its location, other than to say it is in one of the REIT’s target markets. “If it goes as planned the deal will close at the end of Q2 or early Q3,” he says. The company lists acquisitions as one of its revenue-generating strategies in its 2010 annual report, saying that it “intends to acquire additional hotels in urban, convention and resort markets.” It currently owns 35 hotels in markets such as New York, San Francisco and Washington, DC.

LaSalle Hotel Properties announced the sale of seven million common shares--a large raise for the REIT--this week. Goldman, Sachs & Co. acted as sole underwriter and has an option to purchase up to 1,050,000 additional shares. The shares were sold at $27.65 per unit. The company expects to announce the net proceeds from the sale in two days, Barnello says.