Serving the Loop and Near North neighborhoods of downtown Chicago
2Q revenue up for Sax owner despite New York hotel project

July 18, 2013 – The real estate investment trust that owns Hotel Sax is reporting revenue in April, May, and June up from the same period last year.

LaSalle Hotel Properties says total revenue in its second quarter this year was $263.6 million, up eight percent from 2012. Revenue per available room was up 6.7 percent if you do not count the Park Central Hotel, a LaSalle property that is being renovated. Otherwise, RevPAR grew just 0.9 percent.

Occupancy was up, to 86.6 percent, and the average daily rate increased 1.8 percent to $220.52.

Park Central Hotel

At a cost of $60-70 million, the 934-room Park Central Hotel (above) in New York is being split into two distinct hotels, a 761-room version and a new 172-room hotel that will be called WestHouse.

The company, based in Bethesda, Maryland, owns 40 hotels in 13 markets, including Sax in Chicago and The Westin Michigan Avenue.

During a conference call with investors on Thursday, Hotel Sax was among LaSalle properties singled out by CEO Michael Barnello as “best performing.” Sax and one other hotel, said Barnello, had “experienced notably strong growth.”

It was “a strong quarter” in Chicago, he said. Occupancy at LaSalle’s two hotels in Chicago was up eight percent over a year ago, revenue per available room was up 8.9 percent, and average daily rate increased 0.8 percent.

Barnello noted that the supply of hotels in Chicago is increasing.

 Related story: Good March for Sax owner and Chicago hotels in general

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