LaSalle Hotel Properties Acquires Hotel Vitale for $130M
Monday April 7th, 2014 - 9:42AM EK
| | | | | | | | | | |
These are shortcuts to your favorite social networking and bookmark sites. Add this story to your Facebook page, del.icio.us, DiggIt, and many others!
SAN FRANCISCO—LaSalle Hotel Properties has acquired Hotel Vitale located here for $130 million. The company funded the acquisition with borrowings from its senior unsecured credit facility.
The 200-room hotel is located at the intersection of the Embarcadero Waterfront and the Financial District, across from the historic Ferry Building Marketplace. The hotel is near San Francisco’s financial district and South of Market area.
Michael D. Barnello, president and CEO of LaSalle Hotel Properties, stated, “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.”
He added, “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 sq. ft. and include eight suites.
Americano Restaurant & Bar, the hotel’s signature dining outlet, features a modern design and is comprised of a cocktail lounge, indoor dining area with 180 degree panoramic views, 18-seat private dining room and 3,000 sq. ft. outdoor patio overlooking the Embarcadero and San Francisco Bay.
The hotel was purchased subject to a ground lease with the City & County of San Francisco, Municipal Transportation Agency, which expires on March 8, 2070. Commune Hotels and Resorts manages the hotel.
Tags: LaSalle Hotel Properties • Hospitality • Acquisitions • F+B •
For the past few years, the talk of The Lodging Conference in Phoenix had been focused on the economic recovery, solid industry projections and “cautious optimism.” With the word cautious no longer necessary, the economic outlook took a backseat this year to the seemingly unending parade of new lifestyle brands.