NEW ORLEANS— The 494-room New Orleans Grande Hotel, formerly Le Meridien, has been sold for $92.5 million by lodging REIT LaSalle Hotel Properties, representing a $37.2 million gain on sale. However, according to a report in the Times Picayune, the property at 614 Canal St. was sold over the objections of Whitehouse Hotel Limited Partnership, owners of the nearby Ritz-Carlton, New Orleans, citing unfair competition. Although the buyer was not named in the sale, the report indicated Orlando, FL-based CNL Hospitality Group was previously named as the purchaser. It noted CNL intended to convert the property into a JW Marriott, a luxury brand of Marriott International, which also owns the Ritz-Carlton brand. Contending the two hotels would unfairly compete against one another since Marriott would own both brands, Whitehouse tried to halt the sale by filing a lawsuit in Civil District Court. Net proceeds of $91.5 million from the sale were comprised of $46.7 million in debt assumed by the new buyer plus $44.8 million of cash. The seller was represented by Hodges Ward Elliott of Atlanta, GA. LaSalle anticipates redeploying the proceeds from the sale through a 1031-Exchange (like-kind exchange). The hotel was renamed the New Orleans Grande Hotel last December after LaSalle evicted the ownership of Le Meridien New Orleans.
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