LaSalle Hotel Properties has closed on the sale of the Hilton Alexandria Old Town for USD93.4 million.
The company acquired the hotel in May 2004 for USD59.0 million.
“The Hilton Alexandria Old Town was a wonderful long term investment for us,” says Michael D Barnello, president and chief executive officer of LaSalle Hotel Properties. “The asset delivered an unleveraged IRR of 13.5 per cent over 10 plus years.”
Proceeds from the transaction will be used to reduce borrowings on the company’s senior unsecured credit facility and redeem the remaining USD58.7 million of 7.25 per cent Series G preferred shares. The preferred share redemption will close on 3 July 2014.