BETHESDA, Md. (AP) — LaSalle Hotel Properties said Wednesday that it has acquired the 260-room Southernmost Hotel Collection in Key West, Fla., for $184.5 million.
The Southernmost Hotel Collection consists of the Southernmost on the Beach, Southernmost Hotel in the USA and La Mer Hotel & Dewey House.
"We are very excited to have acquired this unique, extremely well located asset," Michael Barnello, president and CEO of LaSalle, said in a statement.
LaSalle said that the combination of limited supply of hotel space in the high-demand tourist area makes it one of the best lodging markets in the U.S. The property it acquired is located on the ocean at the southern end of Duval Street, which runs through Key West's "Old Town" and is home to many of its famous bars, restaurants, shops and historic sites.
Southernmost on the Beach and Southernmost Hotel in the USA have six guest room buildings each. La Mer Hotel & Dewey House are Victorian houses with a bed and breakfast ambiance.
The company said the property is in excellent condition, as $13.8 million has been invested in renovations over the last three years. The Southernmost Hotel Collection will be operated by Highgate Hotels.
LaSalle Hotel Properties declined to disclose who the seller was.
Its shares fell 36 cents, or 1.3 percent, to $26.79 in trading Wednesday. They are in the middle of their 52-week range of $22.33 set last November and $29.51 set last September.