(By Balaseshan) Loews Corp. (NYSE: L) said its subsidiary Loews Hotels & Resorts has agreed to purchase the 356-room Madison Hotel in the heart of Washington, D.C. from Jamestown Properties.
The Madison marks the second major hotel purchase announced by Loews Hotels this year, as part of the goal to add substantially to its portfolio of hotels over the next five years.
The hotel company continues to aggressively seek hotel additions in gateway cities and resort destinations and expects to announce additional new Loews properties in the coming months.
Located at 15th and M Street, the hotel is a short walk to the White House, Embassy Row, the Capital, the National Mall and Smithsonian Museums. Attracting an estimated 18 million visitors in 2012, Washington ranks among the top seven U.S. cities for international travelers and among the top 20 domestically.
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"The Madison completed a dramatic $23 million renovation in 2012. We expect that the hotel's quality, coupled with the addition of the Loews brand, will give us a strong competitive position in the D.C. market," said Paul Whetsell, president & CEO, Loews Hotels & Resorts.
The Madison is home to one of the District's top restaurants, the Federalist, with a focus on Mid-Atlantic culinary traditions. PostScript Bar and Lounge, a new local favorite, features artisan pastries, panini and barista specialties, along with hand-crafted cocktails, small-batch whiskeys, scotches, vodkas and world-class wines.
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The hotel will cater to mid-sized business groups and elite social events that focus on high levels of personal service. The hotel provides more than 12,000 square feet of state-of-the-art meeting and event space in 12 distinct settings, including the 3,300-square-foot ballroom with seating capacity of up to 400 people.
The acquisition is expected to close in January 2013.
L is trading up 0.24% at $40.98 on Monday. The stock has been trading between $36.42 and $43.36 for the past 52 weeks.