X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

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.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.