LaSalle Hotel Properties has announced that it has executed a contract to acquire the Holiday Inn Wall Street for approximately $51.5 million.The 138-room, urban, full-service hotel is located at 15 Gold Street in the heart of Manhattan’s Financial District. The acquisition of the hotel is subject to customary and several non-customary closing conditions, including the departure of the existing restaurant tenant, and the Company makes no assurances that any of the closing conditions will be satisfied or that this acquisition will close on the terms negotiated or at all. Assuming satisfaction of the closing conditions, the Company anticipates the closing will occur in the fourth quarter of 2006.
The aggregate consideration for the hotel, excluding expenses, consists of the assumption of an approximately $20.0 million first mortgage on the hotel and the issuance by the Company’s operating partnership of approximately $3.0 million in class A common partnership units and approximately $28.5 million in aggregate liquidation value of series F preferred partnership units. The series F preferred units will be a newly-created series of preferred units bearing a quarterly distribution on the liquidation value based on a floating rate equal to LIBOR plus 150 basis points.