Venture to Invest Up to $700M in U.S. Hotels
- Apr 17, 2008
LaSalle Hotel Properties and LaSalle Investment Management have announced the creation of a joint venture in order to invest in U.S. urban and resort hotel properties. The venture will have up to $250 million in capitalization which, with potential leverage, could result in a total investment approaching $700 million.The venture will last up to seven years, with an anticipated acquisition period of three years. Real estate investment management firm LaSalle Investment Management, a member of the Jones Lang LaSalle Group, will own 85 percent of the venture, with LaSalle Hotel Properties owning the remaining 15 percent. LaSalle Hotel Properties will also earn incentive fees based on achieving specific return levels, as well as income from asset acquisition and management and redevelopment oversight and financing services. LaSalle Investment Management managing director Dan Witte said in a release today that the venture would look to take advantage of the sluggish capital markets, which are currently limiting price levels and competition for investments.Bethesda, Md.-based LaSalle Hotel Properties operates in high end property management and ownership. The firm recently purchased a portion of the IBM building in Chicago as part of a joint venture with Oxford OG Hospitality Chicago L.L.C.Chicago-based LaSalle Investment Management currently has some $50.4 billion of assets under management.