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LaSalle Hotel Properties Files Investor Presentation in Connection with Blackstone Transaction

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Highlights Blackstone Transaction as Compelling Opportunity for
LaSalle Shareholders, Maximizing Both Value and Certainty

Recommends Shareholders Vote "FOR" the Blackstone Transaction
Prior to the Special Meeting of Shareholders Scheduled for September 6,
2018

LaSalle Hotel Properties (NYSE:LHO) ("LaSalle" or the "Company") today
announced that it has filed an investor presentation with the Securities
and Exchange Commission (the "SEC") in connection with the previously
announced merger with affiliates of Blackstone Real Estate Partners VIII
("Blackstone") and the other transactions contemplated by LaSalle's
merger agreement with Blackstone (the "Blackstone Merger Agreement").
The investor presentation is available on the Investor Relations section
of the Company's website at http://ir.lasallehotels.com/
as well as on www.sec.gov.

The presentation highlights that the Blackstone transaction maximizes
both value and certainty for LaSalle shareholders. Among other things,
the presentation notes:

  • The significant premium and certainty of the all-cash transaction
    with Blackstone.
    The transaction represents a premium of
    approximately 35 percent over LaSalle's unaffected share price, a
    premium of approximately 13 percent to LaSalle's consensus net asset
    value as of May 18, 2018 and protection from the downside risks
    inherent in a stock transaction. LaSalle shareholders will receive
    $33.50 per share in cash in September 2018 upon completion of the
    Blackstone transaction, which is expected within one week of the
    Blackstone transaction being approved by shareholders at LaSalle's
    Special Meeting of Shareholders (the "Special Meeting").
  • LaSalle's Board of Trustees conducted a thorough process that
    produced strong competitive dynamics, maintained a level playing field
    and maximized value.
    During April 2018, the Company and its
    advisors contacted 20 potential buyers, including Blackstone and
    Pebblebrook Hotel Trust ("Pebblebrook"). The Board engaged with all
    interested parties and conducted extensive negotiations over price,
    consideration and terms. After careful consideration, the LaSalle
    Board unanimously determined that the Blackstone transaction
    represents a compelling opportunity for LaSalle shareholders.
  • The facts regarding Pebblebrook's rejected proposals and LaSalle's
    thorough sale process.
    LaSalle sets the record straight.

The LaSalle Board unanimously recommends that LaSalle shareholders
vote the WHITE proxy card "FOR" the proposal to approve the merger and
the other transactions contemplated by the Blackstone Merger Agreement
prior to the Special Meeting, which will be held on September 6, 2018 at
the Sofitel Washington DC Lafayette Square, 806 15th Street NW,
Washington DC 20005 at 10:00 a.m., local time.
All LaSalle
shareholders of record as of the close of business on July 20, 2018 will
be entitled to vote their shares. The Blackstone transaction is the only
transaction on which LaSalle shareholders are voting.

We urge you to discard any gold proxy cards and disregard any related
solicitation materials sent to you by Pebblebrook, which is soliciting
proxies from our shareholders against approving the merger and the other
transactions contemplated by the Blackstone Merger Agreement.
Irrespective of whether you previously submitted a gold proxy card
pertaining to the proposals contained in LaSalle's definitive proxy
statement (the "Proxy Statement"), we urge you to cast your vote on your WHITE
proxy card "FOR" the proposal to approve the merger and the other
transactions contemplated by the Blackstone Merger Agreement.

 
 

If you have any questions, require assistance with voting your WHITE
proxy card, or need additional copies of the proxy materials,
please contact:

 

MacKenzie Partners, Inc.

 

1407 Broadway, 27th Floor

New York, NY 10018

proxy@mackenziepartners.com

(212) 929-5500

Or

TOLL-FREE (800) 322-2885

 
 

Citigroup Global Markets Inc. and Goldman Sachs & Co. LLC are acting as
financial advisors to LaSalle and Goodwin Procter LLP and DLA Piper LLP
(US) are acting as legal counsel.

About LaSalle Hotel Properties

LaSalle Hotel Properties is a leading multi-operator real estate
investment trust. The Company owns 41 properties, which are upscale,
full-service hotels, totaling approximately 10,400 guest rooms in 11
markets in seven states and the District of Columbia. The Company
focuses on owning, redeveloping and repositioning upscale, full-service
hotels located in urban, resort and convention markets. LaSalle Hotel
Properties seeks to grow through strategic relationships with premier
lodging groups, including Access Hotels & Resorts, Accor, Benchmark
Hospitality, Davidson Hotel Company, Evolution Hospitality, HEI Hotels &
Resorts, Highgate Hotels, Hilton, Hyatt Hotels Corporation, IHG, JRK
Hotel Group, Inc., Marriott International, Noble House Hotels & Resorts,
Outrigger Lodging Services, Provenance Hotels, Two Roads Hospitality,
and Viceroy Hotel Group.

Additional Information about the Proposed Merger Transaction and
Where to Find It

This communication relates to the proposed merger transaction involving
the Company and may be deemed to be solicitation material in respect of
the proposed merger transaction. In connection with the proposed merger
transaction, the Company has filed the Proxy Statement with the SEC, as
well as other relevant materials in connection with the proposed merger
transaction pursuant to the terms of the Agreement and Plan of Merger,
dated as of May 20, 2018, among BRE Landmark Parent L.P., BRE Landmark
L.P., BRE Landmark Acquisition L.P., the Company and LaSalle Hotel
Operating Partnership, L.P. This communication is not a substitute for
the Proxy Statement or for any other document that the Company has filed
or may file with the SEC or send to the Company's shareholders in
connection with the proposed merger transaction. BEFORE MAKING ANY
VOTING DECISION, INVESTORS AND SECURITY HOLDERS OF THE COMPANY ARE URGED
TO READ THE PROXY STATEMENT AND OTHER DOCUMENTS FILED WITH THE SEC
CAREFULLY AND IN THEIR ENTIRETY BECAUSE THEY CONTAIN IMPORTANT
INFORMATION ABOUT THE COMPANY, THE PROPOSED MERGER TRANSACTION AND
RELATED MATTERS. Investors and security holders are able to obtain free
copies of the Proxy Statement and other documents filed by the Company
with the SEC through the website maintained by the SEC at http://www.sec.gov.
Copies of the documents filed by the Company with the SEC are also
available free of charge on the Company's website at www.lasallehotels.com,
or by contacting the Company's Investor Relations Department at (301)
941- 1500. The Company and its trustees and certain of its executive
officers may be considered participants in the solicitation of proxies
from the Company's shareholders with respect to the proposed merger
transaction under the rules of the SEC. Information about the trustees
and executive officers of the Company is set forth in its Annual Report
on Form 10-K for the year ended December 31, 2017, which was filed with
the SEC on February 20, 2018, its proxy statement for its 2018 annual
meeting of shareholders, which was filed with the SEC on March 22, 2018
and in subsequent documents filed with the SEC. Additional information
regarding persons who may be deemed participants in the proxy
solicitations and a description of their direct and indirect interests,
by security holdings or otherwise, is included in the Proxy Statement
and may be included in other relevant materials to be filed with the
SEC. You may obtain free copies of this document as described above.

Cautionary Statement Regarding Forward-Looking Statements

This press release, together with other statements and information
publicly disseminated by the Company, contains certain forward-looking
statements within the meaning of Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of
1934, as amended. The Company intends such forward-looking statements to
be covered by the safe harbor provisions for forward-looking statements
contained in the Private Securities Litigation Reform Act of 1995 and
includes this statement for purposes of complying with these safe harbor
provisions. The forward-looking statements contained in this press
release, including statements regarding the proposed merger transaction
and the timing of such transaction, are subject to various risks and
uncertainties. Although the Company believes the expectations reflected
in any forward-looking statements contained herein are based on
reasonable assumptions, there can be no assurance that our expectations
will be achieved. Forward-looking statements, which are based on certain
assumptions and describe future plans, strategies and expectations of
the Company, are generally identifiable by use of the words "believe,"
"expect," "intend," "anticipate," "estimate," "project," or other
similar expressions. Such statements involve known and unknown risks,
uncertainties, and other factors that may cause the actual results of
the Company to differ materially from future results, performance or
achievements projected or contemplated in the forward-looking
statements. Some of the factors that may affect outcomes and results
include, but are not limited to: (i) risks associated with the Company's
ability to obtain the shareholder approval required to consummate the
proposed merger transaction and the timing of the closing of the
proposed merger transaction, including the risks that a condition to
closing would not be satisfied within the expected timeframe or at all
or that the closing of the proposed merger transaction will not occur,
(ii) the outcome of any legal proceedings that may be instituted against
the parties and others related to the merger agreement, (iii)
unanticipated difficulties or expenditures relating to the proposed
merger transaction, the response of business partners and competitors to
the announcement of the proposed merger transaction, and/or potential
difficulties in employee retention as a result of the announcement and
pendency of the proposed merger transaction, (iv) changes affecting the
real estate industry and changes in financial markets, interest rates
and foreign currency exchange rates, (v) increased or unanticipated
competition for the Company's properties, (vi) risks associated with the
hotel industry, including competition for guests and meetings from other
hotels and alternative lodging companies, increases in wages, energy
costs and other operating costs, potential unionization or union
disruption, actual or threatened terrorist attacks, any type of flu or
disease-related pandemic and downturns in general and local economic
conditions, (vii) the availability and terms of financing and capital
and the general volatility of securities markets, (viii) the Company's
dependence on third-party managers of its hotels, including its
inability to implement strategic business decisions directly, (ix) risks
associated with the real estate industry, including environmental
contamination and costs of complying with the Americans with
Disabilities Act of 1990, as amended, and similar laws, (x) the possible
failure of the Company to maintain its qualification as a REIT and the
risk of changes in laws affecting REITs, (xi) the possibility of
uninsured losses, (xii) risks associated with redevelopment and
repositioning projects, including delays and cost overruns, (xiii) the
risk of a material failure, inadequacy, interruption or security failure
of the Company's or the hotel managers' information technology networks
and systems, (xiv) uncertainties regarding future actions that may be
taken by Pebblebrook in furtherance of its unsolicited proposal and
solicitation of proxies, and (xv) those additional risks and factors
discussed in reports filed with the SEC by the Company from time to
time, including those discussed under the heading "Risk Factors" in its
most recently filed reports on Form 10-K and 10-Q. The Company
undertakes no obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise. Investors should not place undue reliance upon
forward-looking statements.

For additional information or to receive press releases via e-mail,
please visit our website at http://www.lasallehotels.com/

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