Serving the Loop and Near North neighborhoods of downtown Chicago
LaSalle 2Q income up

The Park Central Hotel

(Above) The 934-room Park Central Hotel in midtown Manhattan was purchased last month by LaSalle Hotel Properties for $405.5 million. Not including this hotel, LaSalle currently owns 35 upscale hotels in nine states and the District of Columbia.

July 21, 2011 – It was another encouraging quarter for the company that owns Hotel Sax and commercial property at Marina City. LaSalle Hotel Properties reported a second quarter net income of $16.7 million, twice what it made in the second quarter of 2010. Total revenue was $202.6 million, up from $165.7 million a year ago.

The company was most proud of its revenue per available room, up 6.3 percent to $168.97. They credit a 4.6 percent increase in average daily rate, now $202.52, and a 1.6 percent increase in occupancy, currently 83.4 percent.

However, LaSalle’s recent purchase of The Park Central Hotel in midtown Manhattan has been delayed a few months “due to seller related reasons,” according to a news release. During a conference call on Thursday, President and CEO Michael Barnello told investors he is more than “90 percent” confident the sale will close by the end of the year.

“We feel very confident that the things they need to get done will be achieved,” said Barnello. “It will just take a little bit of time.”

A “silver lining,” he explained, is that LaSalle will start getting income from the property after September 2, even if the sale has not closed by then.

“We’re well intentioned to get it closed,” Barnello told investors. “The seller is well intentioned to get is closed. We still love the asset and the market.”

Audio: Hear Barnello’s entire response to a question about The Park Central Hotel from Ryan Millaker of Morgan Stanley. Duration: 1:25.

  • Related story: Sax owner plants flag in midtown Manhattan
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