LaSalle Hotel Properties (NYSE: LHO) today announced the acquisition of Hotel Palomar, Washington, DC for $143.8 million in an off-market transaction. The 335-room urban, full service hotel is located near Dupont Circle at 2121 P Street, NW. As disclosed in its fourth quarter 2011 earnings release, the Company sold common shares through its ATM program during January and February, 2012, resulting in proceeds of $46.6 million. The purchase of Hotel Palomar, Washington, DC was funded with the $46.6 million in proceeds from the ATM program and borrowings from the Company’s senior unsecured credit facility.

Hotel Palomar, Washington, DC is located just one block from Dupont Circle and Embassy Row. The property is within walking distance of the West End and numerous offices near Farragut Square and Connecticut Avenue. Also within walking distance, are George Washington University, Georgetown University and the high-end shopping and dining offerings of the Georgetown neighborhood. As such, Hotel Palomar attracts demand from various sources, including corporate, legal and leisure as well as business from the nearby universities and embassies. The asset is located just around the corner from the Company’s Hotel Madera and a few blocks from Topaz Hotel. The property will continue to be managed by the Kimpton Hotel and Restaurant Group, LLC.

“We are very excited about the acquisition of Hotel Palomar, Washington, DC,” said Michael D. Barnello, President and Chief Executive Officer of LaSalle Hotel Properties. “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.”

Hotel Palomar, Washington, DC features 335 guestrooms with an average size of 436 square feet. The guestrooms include 26 suites, which average more than 600 square feet. The property’s flexible meeting and function space totals 11,000 square feet. The hotel’s restaurant, Urbana Restaurant and Wine Bar, seats 173 and is open for breakfast, lunch and dinner seven days a week. The adjoining Chef’s Table is a private dining space for up to 12 guests. Additionally, the hotel offers a heated outdoor pool and sundeck, a 24-hour fitness center and a business center.

The building was originally constructed in 1962. In 2006, the seller (a Kimpton-sponsored discretionary equity fund) invested $38.0 million in renovations and opened the hotel as the repositioned Hotel Palomar, Washington, DC.

LaSalle Hotel Properties is a leading multi-operator real estate investment trust. The Company owns 45 hotels. The properties are upscale, full-service hotels, totaling approximately 11,300 guest rooms in 14 markets in ten states and the District of Columbia. The Company focuses on owning, redeveloping and repositioning upscale, full-service hotels located in urban, resort and convention markets. LaSalle Hotel Properties seeks to grow through strategic relationships with premier lodging companies, including Westin Hotels and Resorts, Hilton Hotels Corporation, Outrigger Lodging Services, Noble House Hotels & Resorts, Hyatt Hotels Corporation, Benchmark Hospitality, White Lodging Services Corporation, Commune Hotels and Resorts, Davidson Hotel Company, Denihan Hospitality Group, the Kimpton Hotel & Restaurant Group, LLC, Accor, Destination Hotels & Resorts, HEI Hotels & Resorts, JRK Hotel Group, Inc., Viceroy Hotel Group, Highgate Hotels and Access Hotels & Resorts.