BLOOMINGTON, MINNESOTA LaSalle Hotel Properties has sold the 564-key Sheraton Bloomington Hotel for US$20 million, or US$35,000 per key, to an unnamed buyer.
The hotel last sold in 1995 for US$31.8 million, St. Paul Business Journal reports. LaSalle spent US$10.5 million in 2004 to renovate it and convert it to the Sheraton flag; the property was previously known as Radisson Hotel South and Plaza Tower.
The net proceeds from the sale of US$19.6 million will be used to reduce the outstanding balance on the lodging REIT’s senior unsecured credit facility. The property was under contract for sale during the fourth quarter of 2010, and LaSalle anticipates an impairment loss of US$3.2 million in the fourth quarter.