Hotel Viking Sold for $77 Million

The historic Hotel Viking in Newport has changed hands for a cool $77 million.

LaSalle Properties, which has owned the hotel since 1999, said it sold the hotel to an undisclosed buyer and expected the transaction to close this week.

LaSalle Properties originally paid $27 million for the hotel and President and CEO Michael D. Barnello said it was an “excellent long term investment for us.“

“Upon closing, the asset will have delivered an unleveraged IRR of 10.7 percent and an average cash-on-cash yield of 8.6 percent over 15 years,” he said.

The company said the proceeds from the sale will be used to “reduce borrowings on the Company’s Senior Unsecured Credit Facility. In conjunction with the sale of Hotel Viking, the Company is executing a reverse 1031 exchange with Hotel Vitale, which it purchased during April, 2014.”

The company still will own 44 hotels in nine states.

Hotel Viking opened in 1926 and was managed by the American Hotel Company until the 1960s.

After two motel units were built along with a convention center — now the Viking Ballroom, Spa Terre and back of the house areas — in the 1960s, the hotel went through gradual change until LaSalle Hotels bought the property in 1999 and spent upwards of $20 million in renovations to restore its allure and splendor.

How much does a night in such refined quarters cost? Expect to pay $350 to $500 a night.

Photo Courtesy: www.hotelviking.com