(Updates with details of the transaction starting in the second paragraph)
June 6 (Bloomberg) -- LaSalle Hotel Properties said it agreed to buy the Park Central Hotel in midtown Manhattan for $405.5 million.
The company plans to fund the purchase with a mortgage and about $216.6 million raised in a share sale in April, LaSalle Hotel Properties said in a statement without disclosing the seller. The transaction is expected to be completed toward the end of the third quarter.
The 83-year-old hotel, located near Carnegie Hall on Seventh Avenue between West 55th and West 56th streets, is expected to undergo a renovation next year that will cost $30 million to $35 million and include guest rooms and bathrooms, corridors and the lobby.
“We are excited about the acquisition of the Park Central Hotel and the opportunity to further invest in New York City,” Michael D. Barnello, president and chief executive officer of LaSalle Hotel Properties, said in the statement.
The 934-room hotel has a steakhouse and a lobby lounge that serves drinks and light fare. It has 14,000 square feet (1,300 square meters) of meeting and function space, and an 8,500- square-foot grand ballroom.
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