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LaSalle Hotel Properties Confirms Receipt of Proposal from Pebblebrook Hotel Trust

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LaSalle Hotel Properties (NYSE:LHO) ("LaSalle" or the "Company") today
confirmed that it received a proposal from Pebblebrook Hotel Trust
(NYSE:PEB) ("Pebblebrook") on August 21, 2018 to acquire LaSalle in a
transaction with consideration of 0.92 common shares of Pebblebrook per
common share of LaSalle, with the option for LaSalle shareholders to
elect to receive cash up to a maximum of 30% in aggregate of the
consideration, subject to pro ration.

On May 21, 2018, LaSalle entered into a definitive agreement with
affiliates of Blackstone Real Estate Partners VIII, under which
Blackstone will acquire all outstanding common shares of beneficial
interest of LaSalle for $33.50 per share in an all-cash transaction
valued at $4.8 billion (the "Blackstone Merger Agreement").

In accordance with the terms of the Blackstone Merger Agreement, and in
consultation with its financial and legal advisors, the LaSalle Board of
Trustees (the "Board") will carefully review Pebblebrook's proposal to
determine the course of action that it believes is in the best interest
of the Company's shareholders. The Board has not changed its
recommendation of the existing transaction with Blackstone or made any
determination as to whether Pebblebrook's proposal constitutes, or could
reasonably be expected to lead to, a "Superior Proposal" under the terms
of the Blackstone Merger Agreement. The Board expects to respond to
Pebblebrook's proposal in due course.

LaSalle shareholders are advised to take no action at this time.

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 a definitive proxy statement (the
"Proxy Statement") with the Securities and Exchange Commission (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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