LaSalle Hotel Properties has acquired the Park Central Hotel in New York City for $396.2 million. Located in Midtown Manhattan on Seventh Avenue between West 55th and 56th Streets, the full-service hotel features 934 rooms.

The transaction was funded with cash on hand, borrowings from LaSalle Hotel Properties’ senior unsecured credit facility and issuance of 296,300 operating partnership units valued at $27 per share. LaSalle received a $9.3 million reduction from the original purchase price, which is equal to the hotel’s income after debt service from September 2, 2011 through closing and is reflected in the $396.2 million purchase price.

The Park Central is located across the street from Carnegie Hall, three blocks south of Columbus Circle and Central Park, five blocks from Rockefeller Center and Radio City Music Hall, and seven blocks from Times Square and the theater district.

LaSalle Hotel Properties President and CEO Michael D. Barnello noted in a statement that his company is “excited about this well-located New York City asset and our ability to acquire the hotel at an attractive purchase price.”

The hotel features two food and beverage outlets—Cityhouse, an 88-seat contemporary steakhouse, and Bar Bella, the hotel’s lobby lounge—as well as 14,000 sq. ft. of flexible meeting and function space, including an 8,500-sq.-ft. ballroom and 4,800 sq. ft. of retail space.

Originally constructed in 1928, the hotel has undergone several renovations, with more than $33 million since 2004. LaSalle plans to undertake a $30-million-to-$35-million renovation of the hotel , planned for late 2012 to 2013, including the hotel’s lobby, guestrooms, guest bathrooms and corridors.

The Park Central will continue to be managed by Highgate Holdings, whose portfolio features over 20,000 rooms located primarily across the U.S. and in Paris.

“The location and scale of the Park Central Hotel has historically made it an outstanding performer in our portfolio,” Mehdi Khimji, a principal of Highgate Holdings, said in a statement. “And now with the planned renovation and LaSalle’s ownership, the hotel is poised to achieve its full potential,” he added.