The Watergate Hotel Partners LP announced the sale of The Watergate Hotel, Washington D.C., to Blackstone Real Estate Advisors L.P. The hotel was sold for $39,000,000, equivalent to $168,100 per room, in a transaction scheduled to close in August 1998.

The 232-room luxury hotel originally opened in 1967, and forms part of the Watergate complex at Virginia Avenue in the West End district of the city. The hotel is a member of the Leading Hotels of the World.

Blackstone Real Estate Advisors L.P. has awarded management of the hotel to Swissotel, the international luxury hotel operator, and has committed to spend in excess of $10 million to refurbish the property.

The Watergate Hotel fills an important niche among business travelers, since its rooms are relatively large and suitable for longer stays, said Alan Zingale, a Coopers & Lybrand hotel industry consultant.

But the Watergate name, synonymous with the scene of the break-in of Democratic Party offices that led to the downfall of President Richard Nixon in 1974, raises the hotel's profile among travelers interested in tasting a bit of history.

"There's a natural curiosity about the name, `` said Julee Cooke, a Swissotel spokeswoman. ``Whether it's good or bad, it does have its advantages.''

Published: June 30, 1998

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