SAN FRANCISCO-LaSalle Hotel Properties has acquired the 182-room Villa Florence hotel in the Union Square district for $67.2 million, citing strong RevPAR growth in the San Francisco market this year as one of the reasons it was interested in the property. The Maryland-based REIT acquired the hotel, which is at 225 Powell St., from a Larkspur Hospitality joint venture, according to industry sources.

A LaSalle announcement regarding the acquisition said that the hotel "benefits from an excellent location, which allows it to generate significant demand as a result of its numerous well regarded restaurants, robust retail offerings, vibrant nightlife and the adjacent San Francisco Theater District." The Villa Florence fronts the city's Cable Car Line a one block south of Union Square, a popular retail and visitor attraction. The Financial District, Chinatown, Grace Cathedral, Nob Hill, Westfield San Francisco Centre, Sony Metreon, Yerba Buena Park and the Moscone Convention Center are all within walking distance of the hotel.

Michael D. Barnello, president and CEO of LaSalle Hotel Properties, commented in the announcement: “This hotel has a terrific location in a supply-constrained market. As a result of favorable supply and demand trends, San Francisco has had the strongest RevPAR improvement among the top 25 US markets so far in 2011.”