LaSalle awaits third Frisco hotel

Revenue and profit improved in 2013

(Above) Hotel Vitale, soon to be the latest conquest of the owner of two hotels in River North.

10-Feb-14 – A hotel located on the Embarcadero waterfront on San Francisco Bay is the next acquisition for the owner of Hotel Chicago (formerly Hotel Sax) and Westin Michigan Avenue in River North.

LaSalle Hotel Properties says it is under contract to takeover the ground lease of the 200-room Hotel Vitale (above), located on property owned by the City of San Francisco. The $130 million deal is waiting for final approval by the city. It will be LaSalle’s 46th hotel and its third in San Francisco.

Michael Barnello, LaSalle’s president and CEO, called San Francisco a “high-barrier-to-entry, high-demand” market.

The announcement was included with preliminary financial results for 2013. According to a news release on February 5, total revenue for the real estate investment trust was up 12 percent from the year before to $977.3 million. Shareholders will see a net profit of $70.6 million, up 56 percent. Revenue per available room increased 2.8 percent to $167.62.

Final results will be released on February 19.