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Pebblebrook Hotel Trust Comments on the Glass Lewis Recommendation Against LaSalle Hotel Properties' Proposed Transaction with Blackstone

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Pebblebrook Hotel Trust (NYSE:PEB) ("Pebblebrook") today commented on
the recommendation from proxy advisory firm Glass Lewis against the
proposed transaction between LaSalle Hotel Properties (NYSE: LHO)
("LaSalle") and affiliates of The Blackstone Group L.P. (NYSE:BX)
("Blackstone"), which is scheduled for a vote on September 6, 2018.

"We are pleased with Glass Lewis' recommendation that LaSalle
shareholders vote against the proposed transaction with Blackstone,"
said Jon E. Bortz, Chairman, President and Chief Executive Officer of
Pebblebrook Hotel Trust. "As the report noted, LaSalle's claim that the
only alternative to the Blackstone transaction is to run a strategic
review of opportunities rather than engage with Pebblebrook's offer is a
‘heavy-handed scare tactic' that Glass Lewis has ‘not previously
encountered in other contested situations.' Glass Lewis also reiterates
our view that the Blackstone agreement ‘does not clearly represent the
greatest possible value available to [LaSalle] shareholders,' and we are
fully aligned with their recommendation to ‘reject the Blackstone
agreement and signal LaSalle's board that further exploration of the
competing [Pebblebrook] offer is warranted'," said Jon E. Bortz,
Chairman, President and Chief Executive Officer of Pebblebrook Hotel
Trust.

"The report's analysis raised a number of issues we believe are of
particular importance to LaSalle shareholders, including the following
concerns we, too, have repeatedly expressed:

‘In particular, we note the implied value of the July 20, 2018
Pebblebrook offer -- permutations of which have been priced into
Pebblebrook's shares for nearly five months -- has consistently exceeded
Blackstone's all-cash offer by a margin which would, at the very least,
seem to suggest the cash offer is not likely the best available. This is
particularly noteworthy given an agreement with Pebblebrook offers a
significant stake in a continuing enterprise which would seem to have a
reasonable growth strategy and exposure to potentially favorable sector
trends. By contrast, the executed agreement with Blackstone runs counter
to anticipated trends and management's own industry commentary by
offering a one-time exit at a value wholly unsupported by
post-announcement trading activity.

Under the circumstances, we believe cause exists for investors to
question the value offered in LaSalle-Blackstone proposal, and the
August 21, 2018 revised offer only bolsters our view as it widens the
spread over the board recommended cash offer.'

"We continue to believe that our August 21, 2018 offer is clearly and
materially superior to the Blackstone take-under proposal, and our view
is strongly supported by Glass Lewis' recommendation," continued Bortz.
"The LaSalle Board has run a flawed process and ultimately has failed to
act in the best interests of their shareholders by moving forward with a
proposal that represents an egregious transfer of shareholder value to
Blackstone. We intend to vote our 10.8 million shares, representing 9.8%
of LaSalle's common shares, AGAINST the take-under proposals on the GOLD
proxy card, and we encourage all LaSalle shareholders to protect the
value of their investment and do the same."

Shareholders can find additional information on Pebblebrook's August 21,
2018 offer, including investor presentations, press releases, SEC
filings and shareholder voting instructions, under the Investor
Relations section of Pebblebrook's website, investor.pebblebrookhotels.com,
or by clicking here.

Raymond James and BofA Merrill Lynch are acting as financial advisors,
Hunton Andrews Kurth LLP is acting as legal counsel and Okapi Partners
LLC is serving as information agent to Pebblebrook in connection with
the proposed transaction.

For more information, please visit investor.pebblebrookhotels.com.

About Pebblebrook Hotel Trust

Pebblebrook Hotel Trust is a publicly traded real estate investment
trust ("REIT") organized to opportunistically acquire and invest
primarily in upper upscale, full-service hotels located in urban markets
in major gateway cities. The Company owns 28 hotels, with a total of
6,973 guest rooms. The Company owns hotels located in 9 states and the
District of Columbia, including: Los Angeles, California (Beverly Hills,
Santa Monica and West Hollywood); San Diego, California; San Francisco,
California; Washington, DC; Coral Gables, Florida; Naples, Florida;
Buckhead, Georgia; Boston, Massachusetts; Minneapolis, Minnesota;
Portland, Oregon; Philadelphia, Pennsylvania; Nashville, Tennessee;
Columbia River Gorge, Washington; and Seattle, Washington. For more
information, please visit us at www.pebblebrookhotels.com
and follow us on Twitter at @PebblebrookPEB.

ADDITIONAL INFORMATION

This communication does not constitute an offer to buy or solicitation
of an offer to sell any securities. This communication relates to a
proposal which Pebblebrook has made for a business combination
transaction with LaSalle. In furtherance of this proposal and subject to
future developments, Pebblebrook (and, if a negotiated transaction is
agreed, LaSalle) may file one or more registration statements, proxy
statements, tender or exchange offer statements, prospectuses or other
documents with the SEC. This communication is not a substitute for any
proxy statement, registration statement, tender or exchange offer
statement, prospectus or another document Pebblebrook or LaSalle may
file with the SEC in connection with the proposed transaction. INVESTORS
AND SECURITY HOLDERS OF PEBBLEBROOK AND LASALLE ARE URGED TO READ ANY
SUCH PROXY STATEMENT, REGISTRATION STATEMENT, TENDER OR EXCHANGE OFFER
STATEMENT, PROSPECTUS AND OTHER DOCUMENTS FILED WITH THE SEC CAREFULLY
AND IN THEIR ENTIRETY IF AND WHEN THEY BECOME AVAILABLE AS THEY WILL
CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. Any
definitive proxy statement or prospectus (if and when available) will be
delivered to shareholders of LaSalle or Pebblebrook, as applicable.
Investors and security holders will be able to obtain free copies of
these documents (if and when available) and other documents filed with
the SEC by Pebblebrook through the website maintained by the SEC at http://www.sec.gov.

Pebblebrook or LaSalle and their respective trustees and executive
officers and other members of management and employees may be deemed to
be participants in the solicitation of proxies in respect of the
proposed transaction. You can find information about Pebblebrook's
executive officers and trustees in Pebblebrook's definitive proxy
statement filed with the SEC on April 27, 2018. You can find information
about LaSalle's executive officers and trustees in LaSalle's definitive
proxy statement filed with the SEC on March 22, 2018. Additional
information regarding the interests of such potential participants will
be included in one or more registration statements, proxy statements,
tender or exchange offer statements or other documents filed with the
SEC if and when they become available. You may obtain free copies of
these documents using the sources indicated above.

In connection with the proposed merger transaction between LaSalle and
affiliates of Blackstone, which Pebblebrook opposes (the "Proposed BRE
Merger"), LaSalle filed a definitive proxy statement with the SEC on
July 30, 2018 (the "LaSalle Proxy Statement"). On July 30, 2018,
Pebblebrook filed a definitive proxy statement with the SEC in
opposition to that proposed merger transaction (the "Pebblebrook Proxy
Statement"). This communication is not a substitute for the LaSalle
Proxy Statement or the Pebblebrook Proxy Statement or for any other
document that LaSalle or Pebblebrook have filed or may file with the SEC
or send to LaSalle shareholders in connection with the Proposed BRE
Merger. BEFORE MAKING ANY VOTING DECISION, INVESTORS AND SECURITY
HOLDERS OF LASALLE ARE URGED TO READ THE LASALLE PROXY STATEMENT, THE
PEBBLEBROOK PROXY STATEMENT AND OTHER DOCUMENTS FILED WITH THE SEC
CAREFULLY AND IN THEIR ENTIRETY BECAUSE THEY CONTAIN IMPORTANT
INFORMATION ABOUT PEBBLEBROOK, LASALLE, THE PROPOSED BRE MERGER AND
RELATED MATTERS. Investors and security holders can obtain free copies
of the LaSalle Proxy Statement, the Pebblebrook Proxy Statement and
other documents filed by LaSalle or Pebblebrook with the SEC through the
website maintained by the SEC at http://www.sec.gov.
Copies of the documents filed by LaSalle with the SEC are also available
free of charge on LaSalle's website at www.lasallehotels.com,
or by contacting LaSalle's Investor Relations Department at (301)
941-1500. Copies of the documents filed by Pebblebrook with the SEC are
also available free of charge on Pebblebrook's website at www.pebblebrookhotels.com,
or by contacting Pebblebrook's Investor Relations at (240) 507-1330.
LaSalle and its trustees and certain of its executive officers may be
considered participants in the solicitation of proxies from LaSalle's
shareholders concerning the Proposed BRE Merger under the rules of the
SEC. Information about the trustees and executive officers of LaSalle is
set forth in LaSalle's Annual Report on Form 10-K for the year ended
December 31, 2017, which was filed with the SEC on February 20, 2018,
LaSalle's proxy statement for its 2018 annual meeting of shareholders,
which was filed with the SEC on March 22, 2018, and in subsequent
documents filed by LaSalle 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 LaSalle Proxy
Statement and may be included in other relevant materials to be filed
with the SEC. Pebblebrook and its trustees and executive officers and
other members of management and employees may be deemed to be
participants in the solicitation of proxies in respect of the Proposed
BRE Merger. You can find information about Pebblebrook's executive
officers and trustees in Pebblebrook's definitive proxy statement filed
with the SEC on April 27, 2018. You may obtain free copies of this
document as described above.

This document shall not constitute an offer to sell or the solicitation
of an offer to buy any securities, nor shall there be any sale of
securities in any jurisdiction in which such offer, solicitation or sale
would be unlawful prior to registration or qualification under the
securities laws of any such jurisdiction. No offering of securities
shall be made except by means of a prospectus meeting the requirements
of Section 10 of the Securities Act of 1933, as amended.

Forward-Looking Statements

This communication may include "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995. These
forward-looking statements include, but are not limited to, statements
regarding Pebblebrook's offer to acquire LaSalle, its financing of the
proposed transaction, its expected future performance (including
expected results of operations and financial guidance), and the combined
company's future financial condition, operating results, strategy and
plans. Forward-looking statements may be identified by the use of the
words "anticipates," "expects," "intends," "plans," "should," "could,"
"would," "may," "will," "believes," "estimates," "potential," "target,"
"opportunity," "tentative," "positioning," "designed," "create,"
"predict," "project," "seek," "ongoing," "upside," "increases" or
"continue" and variations or similar expressions. These statements are
based upon the current expectations and beliefs of management and are
subject to numerous assumptions, risks and uncertainties that change
over time and could cause actual results to differ materially from those
described in the forward-looking statements. These assumptions, risks
and uncertainties include, but are not limited to, assumptions, risks
and uncertainties discussed in Pebblebrook's most recent annual or
quarterly report filed with the SEC and assumptions, risks and
uncertainties relating to the proposed transaction, as detailed from
time to time in Pebblebrook's and LaSalle's filings with the SEC, which
factors are incorporated herein by reference. Important factors that
could cause actual results to differ materially from the forward-looking
statements made in this communication are set forth in other reports or
documents that Pebblebrook may file from time to time with the SEC, and
include, but are not limited to: (i) the ultimate outcome of any
possible transaction between Pebblebrook and LaSalle, including the
possibilities that LaSalle will reject a transaction with Pebblebrook,
(ii) the ultimate outcome and results of integrating the operations of
Pebblebrook and LaSalle if a transaction is consummated, (iii) the
ability to obtain regulatory approvals and meet other closing conditions
to any possible transaction, including the necessary shareholder
approvals, and (iv) the risks and uncertainties detailed by LaSalle with
respect to its business as described in its reports and documents filed
with the SEC. All forward-looking statements attributable to Pebblebrook
or any person acting on Pebblebrook's behalf are expressly qualified in
their entirety by this cautionary statement. Readers are cautioned not
to place undue reliance on any of these forward-looking statements.
These forward-looking statements speak only as of the date hereof.
Pebblebrook undertakes no obligation to update any of these
forward-looking statements to reflect events or circumstances after the
date of this communication or to reflect actual outcomes.

For additional information or to receive press releases via email,
please visit our website at
www.pebblebrookhotels.com

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