LaSalle Hotel Properties (NYSE:LHO) today announced that it has successfully executed a $57.0 million interest-only secured loan with Column Financial, Inc, a wholly-owned subsidiary of Credit Suisse First Boston. The term of the loan is three years with two one-year extension options and is collateralized by the Company's 615-room Indianapolis Marriott Downtown Hotel. Contemporaneously with the financing, the Company executed a three-year Swap agreement to fix the rate of the loan at 3.56 percent for the next three years. Proceeds from the financing will be used to reduce LaSalle's outstanding balance on its credit facility.
“We are extremely pleased with the terms and execution of this transaction,” noted Hans Weger, Chief Financial Officer for LaSalle Hotel Properties. “Currently, the Company has approximately $320.0 million of debt, of which approximately 56 percent consists of fixed-rate debt and 44 percent consists of variable-rate debt. Additionally, our current weighted average cost of debt is approximately 4.6 percent, which is one of the lowest in the lodging industry.”