Sheraton Bloomington Hotel Sold for $20M

The seller, LaSalle Hotel Properties, will use the proceeds to reduce its unsecured debt.

The Sheraton Bloomington Hotel, located minutes away from the Minneapolis-St. Paul airport and the Mall of America, has been sold to an undisclosed buyer for $20 million.

LaSalle Hotel Properties, the Maryland-based real-estate company that owned the property, announced the sale Thursday, and received proceeds of $19.6 million after payment of transaction cost and fees. The money will be used to reduce the outstanding balance on the company's senior unsecured credit facility. LaSalle anticipates an impairment loss related to the sale of $3.2 million in the fourth quarter of 2010.

LaSalle bought the 564-room hotel for $32 million from Minnetonka-based Carlson in the mid-1990s, according to a report by the Pioneer Press.

The hotel was originally built by Carlson founder Curt Carlson in 1970, and had operated under the Radisson name-a Carlson brand-until its re-branding in 2004. The hotel has since been managed as a Sheraton by Starwood Hotels and Resorts Worldwide.

The company spent $13.5 million for the hotel's renovation in 2006.

The Sheraton Bloomington-the third-largest hotel in Minnesota based on the number of rooms-was LaSalle's only hotel property in Minnesota. The company owns 34 upscale full-service hotels across the nation.