LaSalle Hotel Properties is a self-administered and self-managed real estate investment trust (REIT) that invests in, renovates, and leases full-service luxury hotels in the US. It owns more than 35 in nine states and Washington, DC. Its properties, which together have nearly 10,000 rooms, are typically located in major urban markets near convention centers, business districts, and resorts. The properties are managed by outside hotel operators under such brand names as Marriott, Sheraton, Hilton, and Hyatt. LaSalle Hotel Properties became self-managing in 2001 after three years under the wing of Jones Lang LaSalle.
LaSalle Hotel Properties targets the metropolitan markets of Boston, Chicago, Los Angeles, New York City, San Diego, San Francisco, Seattle, and Washington, DC. It invests in properties elsewhere if the investment aligns with its strategy of improving value through renovations.
The lodging industry was hit by the economic downturn that began in 2007 and led to a decrease in hotel demand. LaSalle reported losses in 2009 and 2010, and put at least one major development project on hold as a result of the weak economy. It shelved plans to create a super luxury hotel inside the 52-story IBM Building in downtown Chicago and ended up selling the proprty at a loss in 2010.
LaSalle returned to profitability in 2011 as economic indicators (and demand) improved. The REIT also got back to acquiring high-end hotels, adding more than ten in its key markets and Philadelphia since the beginning of 2010. – less