Transactions

Inside the deal for The Park Central Hotel

27 Jan, 2012 By: Andrew Sheivachman

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The largest hotel transaction of 2012 so far, LaSalle Hotel Properties acquired The Park Central Hotel in New York City for $396.2 million in a transaction funded by cash and the issuance of new operating shares. Hotel Management spoke with LaSalle to find out more about the deal and the company's acquisition strategy this year.

“The hotel is on 7th avenue between 55th and 56th streets, so we’ve got a fantastic address in one of the best cities in the country unencumbered by brand,” said Michael Barnello, president and CEO of LaSalle. “ New York has been a strong market historically and will continue to be a strong market for the foreseeable future.”

LaSalle will begin a renovation of the property in late 2012 and look for new partners to operate the hotel. They’re looking to put between $30 and $35 million into the renovation. “We’re going to renovate starting in Q4 2012 probably through the first quarter of 2013,” said Barnello. “We’ll do the guestrooms, bathrooms, corridors and lobby. The property was supposed to close earlier last year, and it takes a certain period of time to get the new design worked out.”

Highgate Holdings will operate the hotel through the renovation, although Highgate and LaSalle had no prior relationship before this acquisition. “Our perspective is that we’re going to keep those guys in and have a great relationship with them,” said Barnello.

Barnello also said LaSalle will continue to look for acquisition opportunities in the New York City area as opportunities arise in 2012. “We need a seller first,” said Barnello. “New York is a target market for us, so we will definitely look at everything available."
 

Topic : New York City, Transactions
External Source : Hotel Management