NEW YORK CITY — LaSalle Hotel Properties (NYSE:LHO) has closed on the $396.2 million acquisition of the 934-room The Park Central Hotel, located on Seventh Avenue between West 55th and West 56th Streets in New York City. The company agreed to purchase the property from Highgate Holdings in June of 2011 for $405.5 million, but received a reduction in accordance with the terms of the purchase and sale agreement.
“We are pleased to have finally closed on The Park Central Hotel,” said Michael D. Barnello, president and CEO of LaSalle Hotel Properties, in a statement. “We remain excited about this well-located New York City asset and our ability to acquire the hotel at an attractive purchase price.”
The hotel, which was built in 1928, has undergone renovations totaling $33 million since 2004. LaSalle Hotel Properties intends to renovate the guestrooms, guest bathrooms, corridors and the hotel’s lobby, at an estimated cost of $30 million to $35 million. Construction will begin in late 2012 and completion is slated for 2013.
Hotel amenities include the 88-seat Cityhouse, Bar Bella, 4,800 square feet of retail space and 14,000 square feet of meeting and function space, including an 8,500-square-foot ballroom.
Atlanta-based Hodges Ward Elliott represented the seller in the transaction. Highgate Holdings will continue to manage the property.
“We are thrilled to embark upon our LaSalle Hotel Properties relationship with such an important asset,” said Mehdi Khimji, a principal of Highgate Holdings, in a statement. “The location and scale of The Park Central Hotel has historically made it an outstanding performer in our portfolio and now with the planned renovation and LaSalle’s ownership, the hotel is poised to achieve its full potential.”
LaSalle Hotel Properties’ share price closed at $24.52 on Jan. 3, down from $27.53 a year earlier.
— Savannah Duncan