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.
Hotel Vitale Exterior (Photo: Business Wire)
The 200-room hotel is located at 8 Mission Street at the intersection of the Embarcadero Waterfront and the Financial District, across from the historic Ferry Building Marketplace. Its waterfront location provides striking bay and skyline views. The hotel is within short walking distance of San Francisco’s office towers in the Financial District and South of Market (“SoMa”) area. There is 21 million square feet of existing office space and 3.5 million square feet of new office development within six blocks of the hotel. Some of San Francisco’s most notable companies surround the hotel, including Salesforce, Google, Gap and PG&E. Hotel Vitale is also proximate to world-class retail and entertainment attractions, such as Steuart Street’s restaurant row, Moscone Center, AT&T Park and Union Square.
“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.