BETHESDA, MD—LaSalle Hotel Properties has sold a total of 8,740,000 common shares after underwriters of a recent public offering opted to purchase an additional 1,140,000 common shares. The REIT sold 7.6-million shares in a public offering earlier this month.
Barclays, Deutsche Bank Securities and Morgan Stanley were the underwriters for the offering.
The original announcement about the offering included a heads up from LaSalle that it planned to acquire three hotels in Los Angeles, Portland, OR, and San Francisco for an aggregate purchase price of $500 million.
Following that announcement, LaSalle Hotel reported it has acquired The Heathman Hotel in Portland for $64.3 million. The REIT funded the acquisition with cash on hand and plans to make a $3 million capital investment in 2017 for a soft goods renovation.
Proceeds from the recent offering will be used to fund acquisitions and to pay down the company's $750 million senior unsecured credit facility as well as for general corporate purposes.
The REIT's last few transactions have been dispositions, such as its sale of the Hotel Viking in Newport, RI for $77 million after purchasing the hotel in June 1999 for $27 million and the sale of the Hilton Alexandria Old Town in the Washington DC area for $93.4 million.
Its last acquisition was in April when it acquired the Hotel Vitale in San Francisco for $130 million. It was the REIT's sixth hotel in that city and as CEO Mike Barnello noted at the time "we are also excited about increasing our presence in San Francisco. Room demand is at peak levels and supply growth is expected to be limited for the next several years, which bodes well for owners and operators."
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