EXHIBIT 99.1
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LaSalle Hotel Properties
3 Bethesda Metro Center, Suite 1200
Bethesda, MD 20814
Ph. (301) 941-1500
Fax (301) 941-1553
www.lasallehotels.com
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LASALLE HOTEL PROPERTIES ACQUIRES
THE HOTEL SOLAMAR IN SAN DIEGO, CALIFORNIA
BETHESDA, MD, August 1, 2006 - LaSalle Hotel Properties (NYSE: LHO)
today announced it has acquired the Hotel Solamar in San Diego, California,
for $87.0 million. The 235-room, newly built, independent full-service
hotel is located in the heart of downtown San Diego's Gaslamp Quarter
Historic District. The hotel sits on the corner of Sixth Avenue and J
Street, two blocks from Petco Park and three blocks from the San Diego
Convention Center. The hotel is also surrounded by the city's trendiest
shopping, theaters, art galleries and over 75 restaurants and night clubs.
Hotel Solamar is operated by Kimpton Hotel & Restaurant Group, LLC.
The hotel's unique sun and sea design creates an experience that
attracts demand from all market segments. The hotel includes a full-
service restaurant featuring Coastal California cuisine for breakfast,
lunch and dinner and a popular rooftop oasis serving cocktails and light
cuisine with 225 seats, a large pool, cabanas and views overlooking
downtown San Diego. The Hotel Solamar opened in April 2005 and contains a
fitness center, business center, in-room spa services, parking facility,
8,800 square feet of meeting space and an additional 2,000 square feet of
unfinished street-front space available for retail or additional meeting
space. The hotel is subject to a long-term ground lease.
"We are excited to further our presence in the emergent Gaslamp
Quarter with the acquisition of this newly built high-style hotel,"
remarked Jon Bortz, Chairman and Chief Executive Officer of LaSalle Hotel
Properties. "San Diego is one of the most attractive leisure and
convention destinations and one of the highest occupancy markets in the
United States. The Hotel Solamar is in an irreplaceable location in the
heart of the fastest growing area of downtown San Diego, and it's just two
blocks from our stylish Hilton Gaslamp Quarter Hotel."
Hotel Solamar will continue to be managed by Kimpton Hotel &
Restaurant Group, LLC, which manages seven other hotels for LaSalle Hotel
Properties located in Washington, D.C., Boston, MA and Seattle, WA.
Kimpton operates upscale and luxury boutique/lifestyle hotels in the U.S.
and Canada, and has had a strong relationship with the Company since 2001.
"We are delighted to expand our long-standing relationship with
Kimpton and are eager to work with them to bring this fabulous new hotel to
its full potential," continued Mr. Bortz.
"It is clear that Kimpton and LaSalle have a winning combination with
a profitable track record, and we are excited to extend our partnership
into the state of California," said Kimpton CEO and President Mike Depatie.
"Being chosen by LaSalle Properties to manage an eighth hotel is yet
another vote of confidence for Kimpton - for our expertise, the heartfelt
care we provide our guests at every touch point, and for our unique culture
that gives Kimpton-managed hotels a distinct competitive advantage."
LaSalle Hotel Properties is a leading multi-tenant, multi-operator
real estate investment trust, owning interests in 30 upscale and luxury
full-service hotels, totaling approximately 8,700 guest rooms in 15 markets
in 11 states and the District of Columbia. The Company focuses on owning
upscale and luxury full-service hotels located in urban, resort and
convention markets. LaSalle Hotel Properties seeks to grow through
strategic relationships with premier internationally recognized hotel
operating companies, including Westin Hotels and Resorts, Sheraton Hotels &
Resorts Worldwide, Inc., Crestline Hotels and Resorts, Inc., Outrigger
Lodging Services, Noble House Hotels & Resorts, Hyatt Hotels Corporation,
Benchmark Hospitality, White Lodging Services Corporation, Gemstone Resorts
International, LLC, Thompson Hotels, Sandcastle Resorts & Hotels, Davidson
Hotel Company, and the Kimpton Hotel & Restaurant Group, LLC.
This press release, together with other statements and information publicly
disseminated by the Company, contains certain forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. The Company intends such forward-looking statements to be covered
by the safe harbor provisions for forward-looking statements contained in
the Private Securities Litigation Reform Act of 1995 and includes this
statement for purposes of complying with these safe harbor provisions.
Forward-looking statements, which are based on certain assumptions and
describe the Company's future plans, strategies and expectations, are
generally identifiable by use of the words "believe," "expect," "intend,"
"anticipate," "estimate," "project" or similar expressions. Forward-looking
statements in this press release include, among others, statements about
operating relationships, favorable hotel location and attractiveness of the
San Diego market. You should not rely on forward-looking statements since
they involve known and unknown risks, uncertainties and other factors that
are, in some cases, beyond the Company's control and which could materially
affect actual results, performances or achievements. Factors that may cause
actual results to differ materially from current expectations include, but
are not limited to, (i) the Company's dependence on third-party managers of
its hotels, including its inability to implement strategic business
decisions directly, (ii) risks associated with the hotel industry,
including competition, increases in wages, energy costs and other operating
costs, actual or threatened terrorist attacks, downturns in general and
local economic conditions and cancellation of or delays in the completion
of anticipated demand generators, (iii) the availability and terms of
financing and capital and the general volatility of securities markets,
(iv) risks associated with the real estate industry, including
environmental contamination and costs of complying with the Americans with
Disabilities Act and similar laws, (v) interest rate increases, (vi) the
possible failure of the Company to qualify as a REIT and the risk of
changes in laws affecting REITs, (vii) the possibility of uninsured losses,
and (viii) the risk factors discussed in the Company's Annual Report on
Form 10-K as updated in its Quarterly Reports. Accordingly, there is no
assurance that the Company's expectations will be realized. Except as
otherwise required by the federal securities laws, the Company disclaims
any obligation or undertaking to publicly release any updates or revisions
to any forward-looking statement contained herein (or elsewhere) to reflect
any change in the Company's expectations with regard thereto or any change
in events, conditions or circumstances on which any such statement is
based.
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Additional Contacts:
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Hans Weger, Chief Financial Officer, LaSalle Hotel Properties
- 301/941-1500
For additional information or to receive press releases via e-mail,
please visit our website at www.lasallehotels.com