ALEXANDRIA, VA—We have been tracking the pending sale of the Hilton Alexandria Old Town by LaSalle Hotel Properties since the beginning of the year. It is official now and the seller, LaSalle Hotel Properties, has provided some metrics behind the sale.
As noted previous the 246-key hotel traded for $93.4 million. CEO Michael D. Barnello reported Wednesday morning that for the 10 plus years the REIT held the hotel the asset delivered an unleveraged IRR of 13.5%. "The Hilton Alexandria Old Town was a wonderful long term investment for us," he says in a prepared statement.
Proceeds from the transaction will be used to reduce borrowings on the REIT's senior unsecured credit facility and redeem the remaining $58.7 million of 7.25 percent Series G preferred shares. The preferred share redemption will close on July 3, 2014.
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