Robert Spottswood of Spottswood Properties is the general partner of the buyer entity. Publicly traded LaSalle Hotel Properties, a real estate investment trust based in Bethesda, MD, was the seller. The hotel sold for its approximate book value recorded at the end of the second quarter. The price is about 13 times historical property level EBITDA.
In connection with the sale of the Beachside Resort and the buyer's assumption of the debt, LaSalle will have a $300,000 non-cash expense that relates to the early disposition of debt associated with the sale of the resort in the third quarter.
The approximately $16.5 million in net proceeds from the sale consisted of $11.4 million in debt assumed by the buyer and $5.1 million in cash. The company intends to use the cash received to reduce its outstanding borrowings under its existing $210 million line of credit facility.
The Holiday Inn Beachside Resort is situated on about eight acres on the Gulf of Mexico, with the rooms' balconies overlooking the Gulf. The resort is located at 3841 N. Roosevelt Blvd. It offers 300 feet of beach property, personal watercraft and boat rentals, dive and snorkel trips, a 90-foot sunset pier that stretches into the Gulf, sunset cruises, a poolside lounge, tennis courts and 6,000 sf of meeting space.
LaSalle is a multi-tenant, multi-operator REIT that invests in full-service, upscale and luxury hotels in resort, convention, business and urban markets. The REIT has an interest in 16 full-service, upscale and luxury hotels that have a combined 5,400 guest rooms located in 12 markets in 10 states and in the District of Columbia.
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