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.
Lobby (Photo: Business Wire)
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.”