LaSalle expands empire to 34 hotels

$292.5 million buys properties in San Francisco and Philadelphia

(Above) Hotel Monaco in San Francisco – near Union Square and Moscone Center – one of three hotels purchased by LaSalle Hotel Properties, owner of Marina City’s Hotel Sax.

2-Sep-10 – LaSalle Hotel Properties, the real estate investment trust that owns Hotel Sax and other commercial property at Marina City, has acquired three more properties, bringing its empire of upscale hotels to 34.

The publicly traded company bought Hotel Monaco San Francisco for $68.5 million, Westin Philadelphia for $145 million, and Embassy Suites Philadelphia for $79 million.

A resort near Atlantic City that LaSalle owned, Seaview Resort, was sold for $20 million. That sale, along with unsecured loans, selling $75 million in stock, and available cash, helped pay for the acquisitions, according to a press release on Wednesday.

Hotel Monaco, managed by Kimpton Hotels & Restaurants, has 201 guestrooms, including 35 suites, a French restaurant that seats 190 people, and 9,000 square feet of meeting space. It is located two blocks from Union Square in San Francisco.

“We are excited to make our first investment in this top-tier, high barrier-to-entry market,” said Michael D. Barnello (left), LaSalle’s president and chief executive officer. “San Francisco is one of the strongest U.S. hotel markets and is known for its robust and diverse economy with demand drivers coming from both the business and leisure segments.”

Westin Philadelphia has 294 rooms, including 19 suites, three food and beverage outlets, and 17,000 square feet of meeting space. It is close to Rittenhouse Square and attractions such as Philadelphia Museum of Art, Independence Hall, and the Liberty Bell.

Embassy Suites has 288 rooms, all suites, a 280-seat restaurant, and 3,000 square feet of meeting space.

Like Hotel Monaco, Westin Philadelphia is also a AAA “Four Diamond” hotel, the association’s second highest rating. Embassy Suites is a Three Diamond hotel. Westin and Embassy are managed by HEI Hotels & Resorts.

Based in Bethesda, Maryland, LaSalle now has more that 9,200 guest rooms in 15 markets.