LaSalle Pays $143.8M for DC’s Hotel Palomar
- Mar 19, 2012
LaSalle Hotel Properties (NYSE: LHO) announced on March 9 it has acquired the Hotel Palomar in Washington D.C. The real estate investment trust paid $143.8 million for the hotel in an off-market transaction. It is the region’s second Hotel Palomar to be acquired in recent months. The Rosslyn Hotel Palomar was purchased in February by HEI Hospitality L.L.C.
The Hotel Palomar Washington is a high-end boutique hotel. It was constructed 1962 and features 335 guestrooms, with an average size of 436 square feet. Twenty-six are suites, averaging more than 600 square feet. The hotel also includes 11,000 square feet of flexible meeting and function space; a 173-seat Urbana Restaurant and Wine Bar open for breakfast, lunch and dinner seven days a week; a heated outdoor pool and sundeck; a 24-hour fitness center; and a business center.
Located at 2121 P St., N.W., in D.C.’s Dupont Circle neighborhood, the hotel is within walking distance of George Washington University, Georgetown University, the West End, a cluster of foreign embassies and numerous offices and high-end shopping and dining offerings. A discretionary equity fund sponsored by the Kimpton Hotel and Restaurant Group invested $38 million in 2006 to renovate the property. The same discretionary equity fund is the seller and will continue to manage the hotel.
“We are very familiar with the excellent location of this asset through our ownership of several other hotels in the neighborhood. The hotel is in great physical condition and offers several attractive amenities. With the acquisition of this hotel, Kimpton now manages 10, of our assets and we are excited to build upon this relationship.” said Michael Barnello, president & CEO of LaSalle Hotel Properties, in a press release.
Bethesda-based LaSalle funded the purchase with $46.6 million in proceeds from a recent sale of common shares through its ATM program, as well as from borrowings from the company’s senior unsecured credit facility. With the new acquisition, LaSalle now owns 38 upscale full-service hotels, totaling more than 10,100 guest rooms in 13 markets across the nation.
Image courtesy of http://www.hotelpalomar-dc.com.