LaSalle Hotel Properties Acquires Hotel Vitale in San Francisco for $130.0 Million
LaSalle Hotel Properties (NYSE:LHO) today announced that it acquired Hotel Vitale in San Francisco, CA for $130.0 million. The Company funded the acquisition with borrowings from its Senior Unsecured Credit Facility.
"We are thrilled with this acquisition," said Michael D. Barnello, President and Chief Executive Officer of LaSalle Hotel Properties. "Hotel Vitale is outstanding physically and in terms of its location. The hotel is surrounded by demand generators that attract corporate and leisure business and the views from the hotel are breathtaking."
"We are also excited about increasing our presence in San Francisco. Room demand is at peak levels and supply growth is expected to be limited for the next several years, which bodes well for owners and operators. Market performance has been strong and we are pleased to have acquired our sixth hotel in San Francisco."
Newly constructed in 2005, the hotel has been well maintained with $6.5 million in subsequent capital expenditures including restaurant upgrades and new guestroom furniture. Hotel Vitale's 200 guestrooms average 375 square feet and include 8 suites.
Americano Restaurant & Bar, the hotel's signature dining outlet, features a modern design and is comprised of a cocktail lounge, indoor dining area with 180 degree panoramic views, 18-seat private dining room and 3,000 square foot outdoor patio overlooking the Embarcadero and San Francisco Bay. The property offers 11,300 square feet of meeting and event space, including several outdoor spaces.
The hotel was purchased subject to a ground lease with the City & County of San Francisco, Municipal Transportation Agency, which expires on March 8, 2070. Hotel Vitale is managed by Commune Hotels and Resorts, which also manages the Company's Gild Hall hotel in New York.