X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

BETHESDA, MD-The deals are not yet written in stone, but locally based LaSalle Hotel Properties has agreed to acquire three hotels in the San Diego, Seattle and Washington, DC markets in three separate deals totaling $162.2 million. The properties involved area the Hilton San Diego Resort, Seattle’s Best Western University Tower Hotel and DC’s Holiday Inn Downtown.

LaSalle will fork over $91.2 million for the 357-room Hilton San Diego Resort. The property sits on 18 acres along the Mission Bay Park waterfront and features 16,000 sf of meeting and function space and 9,600 sf of outdoor meeting space. “San Diego is a strong market in and of itself, and it is growing so there is a lot of upside,” LaSalle CFO Hans Weger tells GlobeSt.com. LaSalle will spend approximately $10 million to upgrade the property, and while it will continue to carry the Hilton flag, it will ultimately be operated by Noble House Hotels & Resorts.

In a planned $26.4-million transaction, LaSalle will make its entrée into the Seattle market with the acquisition of the Best Western University Tower Hotel, which is located two blocks from the University of Washington. In addition to its 158 rooms, the hotel also features 6,700 sf of meeting space. Management of the property will be taken over by Seattle-based Noble House. “The Best Western is in name only,” Weger explains. “We will be removing the flag and we’ll be putting some money into it to finish up the hotel’s upgrade.”

The lodging REIT will also spend $44.6 million for the Holiday Inn Downtown in Washington, DC. The 212-room hotel will be repositioned, courtesy of a $21-million makeover. “We will close it down next year and it will come back as a high-end independent hotel similar to our DC Collection,” Weger says. “It will have a high-end, interesting design.”

All three purchases, Weger notes, fit with LaSalle’s acquisition strategy that has been in place since the REIT’s inception. “We continue to be focused on urban resort and convention hotels. We look for hotels with various opportunities for growth.” If all goes as planned, the transactions with the three different sellers will close no later than Jan. 31.

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
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

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 © 2021 ALM Media Properties, LLC. All Rights Reserved.