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BOSTON-In what will be one of the largest hotel sales ever in this city, LaSalle Hotel Properties will pay $318 million to acquire the Westin Copley Place in the Back Bay. The agreement will give the new owner control over the Copley Square property by the end of the third quarter.

“It is located in the prime shopping, prime dining and entertainment and prime business area of the city,” Hans Weger, chief financial officer for LaSalle, tells GlobeSt.com. “It has everything we look for in our strategy.”

Weger says the Bethesda, MD-based LaSalle, which in May purchased the 112-room Onyx Hotel in Boston for $28.6 million, selected the AAA-rated four diamond, 803-room property because of its Copley Square location, its upscale image and its location within two blocks of Hynes Convention Center and five miles from Logan Airport. The REIT, which focuses its investments on upscale hotels in resort or convention areas, also owns the Hyatt Harborside at Logan Airport as well as interest in 22 full-service hotels totaling 6,800 guest rooms in 14 markets in 10 states and the District of Columbia.

“This helps us accomplish our mission of long-term stream of income for our shareholders,” Weger adds. “This is a stabilized asset in a city that has growth potential.”

The off-market sales agreement, negotiated between the LaSalle and a privately held entity that includes Greenwich, CT-based Starwood Capital, requires the new owners to assume a $210-million first mortgage on the property, issue to one of the current owners approximately $59 million in preferred units that will have a coupon rate of 7.25% and fund the balance with proceeds from the LaSalle’s senior unsecured credit facility. The contract also is subject to certain restructuring events by the current owners and customary closing requirements and conditions. Westin will continue to manage the property.

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