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LaSalle Hotel Properties' Board of Trustees Determines Pebblebrook Hotel Trust Proposal Could Reasonably Be Expected to Lead to a "Superior Proposal"

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LaSalle to Engage in Discussions with Pebblebrook

LaSalle Hotel Properties (NYSE:LHO) ("LaSalle" or the "Company") today
announced that its Board of Trustees (the "Board"), through a unanimous
vote of the trustees present (with only Stuart L. Scott not in
attendance due to recent hospitalization), has determined that the
unsolicited, non-binding proposal received from Pebblebrook Hotel Trust
(NYSE:PEB) ("Pebblebrook") on August 21, 2018 (the "Pebblebrook
Proposal") could reasonably be expected to lead to a "Superior Proposal"
as defined in LaSalle's merger agreement with affiliates of Blackstone
Real Estate Partners VIII ("Blackstone") (the "Blackstone Merger
Agreement").

Under the terms of the Pebblebrook Proposal, Pebblebrook would 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 a fixed amount of $37.80 per share in
cash up to a maximum of 30% in aggregate of the consideration, subject
to pro ration.

The Board's determination follows a careful and thorough review of the
Pebblebrook Proposal in consultation with outside financial and legal
advisors. LaSalle noted that the determination by the Board, which is
committed to maximizing value for shareholders, allows LaSalle to engage
in discussions with Pebblebrook in accordance with the terms of the
Blackstone Merger Agreement. At this time, LaSalle remains bound by the
terms of the Blackstone Merger Agreement, and the Board has not changed
its recommendation in support of the Blackstone Merger Agreement and is
not making a recommendation with respect to the Pebblebrook Proposal.

LaSalle noted that there can be no assurance that the discussions with
Pebblebrook will result in the Board's determination that the
Pebblebrook Proposal is a Superior Proposal or the consummation of a
transaction that is superior to the pending transaction with Blackstone.
Further, there can be no assurance that the terms of any new transaction
will be the same as those reflected in Pebblebrook's Proposal.

As previously announced on May 21, 2018, LaSalle entered into the
Blackstone Merger Agreement, under which Blackstone would 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.

LaSalle notes that the Special Meeting of Shareholders to vote on the
Blackstone Merger Agreement remains scheduled for September 6, 2018 at
the Sofitel Washington DC Lafayette Square, 806 15th Street NW,
Washington DC 20005 at 10:00 a.m., local 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 with Blackstone and may be deemed to be solicitation
material in respect of the proposed merger transaction with Blackstone.
In connection with the proposed merger transaction with Blackstone, 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 with Blackstone pursuant to the terms of the Blackstone
Merger Agreement. 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 with Blackstone. 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 WITH
BLACKSTONE AND RELATED MATTERS.

This communication does not constitute an offer to sell, or the
solicitation of an offer to buy, any securities, or a solicitation of
any vote or approval, 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. If a negotiated transaction between the Company and
Pebblebrook is agreed, the Company and Pebblebrook will prepare and file
a registration statement that will include a proxy statement/prospectus
related to the proposed transaction, the proposed transaction will be
submitted to the shareholders of the Company for their consideration,
and the Company will provide the proxy statement/prospectus to its
shareholders. The Company, and possibly Pebblebrook, may also file other
documents with the SEC regarding the proposed transaction. This document
is not a substitute for any prospectus, proxy statement or any other
document which the Company or Pebblebrook may file with the SEC in
connection with the proposed transaction with Pebblebrook. IF A
NEGOTIATED TRANSACTION BETWEEN THE COMPANY AND PEBBLEBROOK IS AGREED,
INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE PROXY
STATEMENT/PROSPECTUS AND THE OTHER RELEVANT MATERIALS WITH RESPECT TO
THE PROPOSED TRANSACTION WITH PEBBLEBROOK CAREFULLY IN THEIR ENTIRETY
WHEN THEY BECOME AVAILABLE BEFORE MAKING ANY VOTING OR INVESTMENT
DECISION WITH RESPECT TO THE PROPOSED TRANSACTION WITH PEBBLEBROOK,
BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED
TRANSACTION WITH PEBBLEBROOK.

Investors and security holders are able to obtain free copies of the
Proxy Statement and will be able to obtain free copies of the proxy
statement/prospectus, as applicable, and other relevant documents filed
by the Company and/or Pebblebrook 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 transactions contemplated by
the Blackstone Merger Agreement or the proposed transaction with
Pebblebrook 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 in respect of the transactions contemplated by the
Blackstone Merger Agreement, or the transactions contemplated by the
Pebblebrook Proposal, as applicable, and a description of their direct
and indirect interests, by security holdings or otherwise, is included
in the Proxy Statement and will be included in any registration
statement, prospectus, proxy statement and other relevant materials in
respect of the transactions contemplated by the Pebblebrook Proposal to
be filed with the SEC if and when they become available. 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
with Blackstone and the transactions contemplated by the Pebblebrook
Proposal and the timing of such transactions, 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) the determinations made
by the Board following its evaluation of the Pebblebrook Proposal,
including that the Pebblebrook Proposal may not result in a definitive
proposal or an alternative transaction, (ii) actions of Blackstone in
response to any discussions with Pebblebrook, (iii) risks associated
with the Company's ability to obtain the shareholder approval required
to consummate a proposed merger transaction and the timing of the
closing of a 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 a proposed merger transaction
will not occur, (iv) the outcome of any legal proceedings that may be
instituted against the parties and others related to a proposed merger
transaction, (v) unanticipated difficulties or expenditures relating to
a proposed merger transaction, the response of business partners and
competitors to the announcement of a proposed merger transaction with
Blackstone or Pebblebrook, and/or potential difficulties in employee
retention as a result of the announcement and pendency of a proposed
merger transaction with Blackstone or Pebblebrook, (vi) changes
affecting the real estate industry and changes in financial markets,
interest rates and foreign currency exchange rates, (vii) increased or
unanticipated competition for the Company's properties, (viii) 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, (ix) the availability and terms of financing and
capital and the general volatility of securities markets, (x) the
Company's dependence on third-party managers of its hotels, including
its inability to implement strategic business decisions directly, (xi)
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, (xii) the
possible failure of the Company to maintain its qualification as a REIT
and the risk of changes in laws affecting REITs, (xiii) the possibility
of uninsured losses, (xiv) risks associated with redevelopment and
repositioning projects, including delays and cost overruns, (xv) the
risk of a material failure, inadequacy, interruption or security failure
of the Company's or the hotel managers' information technology networks
and systems, (xvi) uncertainties regarding future actions that may be
taken by Pebblebrook in furtherance of the Pebblebrook Proposal and
solicitation of proxies, and (xvii) 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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