NEWPORT, RI—LaSalle Hotel Properties has entered into a definitive contract to sell Hotel Viking located here for $77 million. The company expects the transaction to close this week. The company acquired the hotel in June 1999 for $27 million.
“Hotel Viking was an excellent long term investment for us,” said Michael D. Barnello, president and CEO of LaSalle Hotel Properties. “Upon closing, the asset will have delivered an unleveraged IRR of 10.7% and an average cash-on-cash yield of 8.6% over 15 years.”
Proceeds from the transaction will be used to reduce borrowings on the company’s Senior Unsecured Credit Facility. In conjunction with the sale of Hotel Viking, the LaSalle Hotel Properties is executing a reverse 1031 exchange with Hotel Vitale, which it purchased during April, 2014.