LaSalle Hotel Properties on Tuesday announced that it acquired the 681-room Westin Market Street in San Francisco for US$350 million with cash on hand and borrowings from its senior unsecured credit facility.
At closing, LaSalle renamed the hotel Park Central San Francisco with Highgate Hotels staying on as the manager. Highgate also manages for LaSalle the Park Central and WestHouse in New York City, as well as the Southernmost Hotel Collection in Key West, Florida.
“We are thrilled to have acquired this prominent hotel with such a fantastic location” said Michael Barnello, president and CEO of LaSalle Hotel Properties. “The San Francisco lodging market remains very strong, with demand at peak levels and limited supply growth on the horizon, and we are excited about increasing our presence in San Francisco for the second time within 10 months – marking our seventh hotel in the city. Approximately 17% of our EBITDA is now generated in San Francisco.”
The hotel was constructed in 1984 and underwent a comprehensive US$28.3 million renovation in 2007, with another US$14 million invested from 2009 to present. LaSalle plans to commence a normal life-cycle renovation in the fourth quarter of 2016.