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January 3, 2012

LaSalle completes Park Central acquisition

Real estate investment trust LaSalle Hotel Properties has closed the previously announced acquisition of The Park Central Hotel in New York, US for $396.2m.

The <a href=Park Central ” height=”225″ src=”https://www.hotelmanagement-network.com/wp-content/uploads/static-progressive/nri/hotel/news/January/The%20Park%20Central%20Hotel.JPG” style=”padding:10px” title=”The Park Central ” width=”301″ />

Real estate investment trust LaSalle Hotel Properties has closed the previously announced acquisition of The Park Central Hotel in New York, US for $396.2m.

LaSalle has received a $9.3m reduction from the original purchase price in accordance with the terms of the purchase and sale agreement; the reduction is equal to the hotel’s income after debt service from 2 September 2011 to closing.

The 934-room Park Central features two food and beverage outlets: Cityhouse – an 88-seat steakhouse, and Bar Bella – the hotel’s lobby lounge.

The hotel also offers 14,000ft² of meeting and function space, including an 8,500ft² ballroom and 4,800ft² of retail space.

Originally constructed in 1928, the hotel has undergone numerous renovations throughout the years, with over $33m spent on upgrade work since 2004.

LaSalle plans to carry out a renovation of its own, the cost of which is estimated at between $30m and $35m, to improve the hotel’s guestrooms, guest bathrooms, corridors and lobby.

The company hopes to commence renovation work in late 2012 and finish during 2013.

The Park Central will be managed by Highgate Holdings , which presently has a portfolio of more than 20,000 rooms located in New York, San Francisco, Washington, District of Columbia, Las Vegas and Paris.

Highgate Holdings Principal Mehdi Khimji said the location and scale of the hotel has made it a good performer in its portfolio and with the planned renovation and LaSalle ‘s ownership, it is poised to achieve its full potential.

LaSalle owns 37 upscale full-service hotels, totalling over 9,800 guest rooms in 13 markets in nine US states and the District of Columbia.

Image caption: The Park Central Hotel has undergone numerous renovations throughout the years, with over $33m spent since 2004. Photo courtesy of Jim.henderson.

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