Debt Financing; Five-Year, 5.25 percent Fixed-Rate Loan
Secured by San Diego Paradise Point Resort
|BETHESDA, Md. - Dec. 12, 2003 -- LaSalle Hotel Properties (NYSE:LHO)
today announced that it has successfully executed a $65.0 million secured
loan with GE Real Estate at a fixed rate of 5.25 percent. The term of the
loan is five years and is secured by the Company's 462-room San Diego Paradise
Point Resort. Proceeds will be used to reduce LaSalle's outstanding balance
on its credit facility.
"We are extremely pleased with the low rate we were able to obtain on the San Diego secured financing," noted Hans Weger, Chief Financial Officer for LaSalle Hotel Properties. "As a result of this transaction, 51 percent of the Company's total outstanding debt now consists of fixed-rate debt and 49 percent now consists of variable-rate debt."
"This deal underscores GE Real Estate's commitment to providing financial solutions to companies in the hospitality industry," said Michael Rowan, Senior Vice President, Specialized Industries at GE Real Estate. "We are delighted to leverage our global capital to help LaSalle Hotel Properties with their most recent financial services need."
The secured debt transaction was done in anticipation of prepaying the Company's $62.4 million loan secured by the Lansdowne Resort, which currently has a 7.5 percent interest rate. The Company gave notice on December 2, 2003 that it would prepay the Lansdowne loan on February 11, 2004. The Company expects to realize approximately $1.4 million in annual interest expense savings as a result of the San Diego secured financing and prepaying the Lansdowne Resort debt. As of December 12, 2003, the Company had no borrowings outstanding on its senior unsecured credit facility and $239.5 million of secured debt, including its $11.9 million portion of the joint venture debt related to the Chicago Marriott.
LaSalle Hotel Properties is a leading multi-tenant, multi-operator real estate investment trust, which owns interests in 17 upscale and luxury full-service hotels, totaling approximately 5,600 guest rooms in 12 markets in 10 states and the District of Columbia.
Certain matters discussed in this press release may be deemed to be forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.
LaSalle Hotel Properties
Hans Weger, Chief Financial Officer
|Also See:||LaSalle Hotel Properties Reports Net Loss of $3.7 million for 4th Qtr 2003; RevPAR Down 4.8% for the Year Hotel Operating Statistics / Feb 2003|
|LaSalle Hotel Properties Acquires the 296-room Lansdowne Resort for $115.8 million; Benchmark Hospitality Continues as Manager / June 2003|