The hotel operated as Le Meridien New Orleans until Dec. 19, when LaSalle severed the relationship. On Dec. 20, Interstate Hotels & Resorts became the new operator and the property was renamed New Orleans Grande Hotel. As of earlier this week, the property at 614 Canal St. has been re-branded as a J.W. Marriott, which is Marriott International's self-titled luxury brand, and a Marriott subsidiary is operating the hotel for CNL.
CNL, a public but unlisted REIT, said in recent SEC filings that it intends to spend approximately $10 million on improvements over its first two years of ownership. Neither CNL nor Marriott returned GlobeSt.com phone calls seeking further comment.
LaSalle Hotel Properties, which was represented by Hodges Ward Elliott of Atlanta, Georgia, says it gained $37.2 million on the sale. LaSalle says it will hold the net cash proceeds in an escrow account in anticipation of redeploying the proceeds through a 1031 Exchange.
LaSalle and Le Meridien are still in court over their separation in New Orleans, according to a spokesperson for LaSalle. Marriott, too, was in court over 614 Canal St. recently when the owner of the nearby Ritz-Carlton New Orleans, another of Marriott's luxury brands, tried to block the relationship, arguing that the two luxury hotels would unfairly compete against one another.
Neither CNL nor Marriott returned phone calls seeking further comment.
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