LaSalle sells Newport, R.I., indy hotel for $77M

LaSalle Hotel Properties has entered into a definitive contract to sell the Hotel Viking in Newport, R.I., for $77 million. The company expects the transaction to close this week. LaSalle acquired the hotel in 1999 for $27 million. The buyer was not initially disclosed.

“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 percent and an average cash-on-cash yield of 8.6 percent 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 company is executing a reverse 1031 exchange with Hotel Vitale, which it purchased during April 2014.

When this transaction closes, the LaSalle will own 44 hotels.