LaSalle Hotel Properties Scoops Up Two San Francisco Hotels

SAN FRANCISCO-LaSalle Hotel Properties has acquired the Harbor Court Hotel and Hotel Triton, both located in San Francisco, for $47.8 million.

LaSalle funded the transaction with borrowings from its senior unsecured credit facility.

“We are very excited to have acquired these two well-located assets in one of the strongest markets in the United States,” said Michael Barnello, president and CEO LaSalle Hotel Properties. “After exceeding cyclical prior peak demand in 2011, the market continues to grow. We are equally encouraged by the very limited supply growth slated for the next several years.”

The 131-room, Harbor Court Hotel is located at 165 Steuart Street in San Francisco's financial district on the Embarcadero and offers stunning views of the San Francisco Bay. The hotel is proximate to many downtown attractions including the Ferry Building, Embarcadero Center, AT&T Park and the Moscone Convention Center. The property's location and access to popular restaurants, shops and entertainment venues make it an attractive destination for both leisure and business travelers. Originally built in 1926, the building was extensively renovated and converted in 1991 to the Harbor Court Hotel.

The Harbor Court Hotel houses the 230-seat, upscale, contemporary Japanese Restaurant “Ozumo,” which is leased to a third-party restaurateur and open for lunch and dinner. Ozumo was created in May 2001 and has been very successful since opening.

Hotel Triton is a 140-room hotel located at 342 Grant Avenue in the Union Square neighborhood of San Francisco. The hotel is close to the Financial District, less than a mile away from Moscone Convention Center and sits at the gateway to Chinatown. The building was originally constructed in 1912 and was converted to a hotel in 1991. In 2012, the property completed a guestroom renovation.

Both hotels will continue to be operated by Kimpton Hotels and Restaurants, which is headquartered in San Francisco. Harbor Court Hotel and Hotel Triton are subject to building leases, both of which expire in approximately 34 years.

LaSalle Hotel Properties is a leading multi-operator real estate investment trust. The company owns 42 hotels and a mezzanine loan secured by two hotels in Santa Monica, CA. The properties are upscale full-service hotels, totaling almost 10,900 guest rooms in 13 markets in nine states and the District of Columbia. The company focuses on owning, redeveloping and repositioning upscale and luxury, full-service hotels located in convention, resort and major urban business markets. LaSalle Hotel Properties seeks to grow through strategic relationships with premier lodging companies, including Westin Hotels and Resorts, Hilton Hotels Corporation, Outrigger Lodging Services, Noble House Hotels & Resorts, Hyatt Hotels Corporation, Benchmark Hospitality, White Lodging Services Corporation, Thompson Hotels, Davidson Hotel Company, Denihan Hospitality Group, the Kimpton Hotel & Restaurant Group, LLC, Accor, Destination Hotels & Resorts, HEI Hotels & Resorts, JRK Hotel Group, Inc., Viceroy Hotel Group, Highgate Hotels and Access Hotels & Resorts.