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Bethesda-based LaSalle Hotel Properties buys Park Central Hotel

BETHESDA — LaSalle Hotel Properties said Tuesday that it bought The Park Central Hotel in New York City for $396.2 million.

LaSalle agreed to buy the hotel from Highgate Holdings in June. The Park Central is on Seventh Avenue between West 55th and 56th Streets and has 934 rooms. It includes the Cityhouse steakhouse and the Bar Bella lobby lounge. LaSalle said it funded the deal with cash on hand, money borrowed from its senior unsecured credit facility, and by issuing 296,300 operating partnership units worth $27 each.

Highgate Holdings will continue to run the Park Central. When LaSalle announced its agreement to buy the hotel, it said it plans to start a renovation in late 2012. It will make changes to the guestrooms, guest bathrooms, corridors, and lobby at a cost of $30 million to $35 million. LaSalle said the renovations should be finished in 2013.

LaSalle Hotel Properties now owns 37 hotels with 9,800 rooms in 13 different markets. Its shares rose 62 cents, or 2.6 percent, to $24.83 in morning trading.