Market Overview

UNITE HERE Asks If LaSalle Hotel Shareholders Are Shorting Pebblebrook Stock Ahead of Merger Vote

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UNITE HERE has asked the Securities and Exchange Commission to
investigate whether any large shareholders of LaSalle Hotel Properties
(NYSE:LHO) that may have shorted shares of Pebblebrook Hotel Trust
(NYSE:PEB) should disclose such short sales in their 13D and 13G forms.

LaSalle's shareholders will vote September 6 on a proposal to be
acquired by Blackstone Group. Pebblebrook, which owns 9.8% of LaSalle
stock, is making its own proposal to merge with LaSalle in a stock and
cash deal, and is soliciting other LaSalle shareholders to vote no on
the Blackstone proposal.

As of July 31, 2018, 8.8 million shares of Pebblebrook were shorted,
representing 13% of its stock. If large LaSalle shareholders have
shorted Pebblebrook's shares, hoping to replace them in a successful
Pebblebrook merger, such transactions could potentially create a
financial incentive in the outcome of the Blackstone merger vote that
may differ from that of other LaSalle shareholders.

"Large LaSalle shareholders should be transparent about financial
transactions that could impact their vote on September 6," said Courtney
Alexander, Deputy Research Director for UNITE HERE. "We ask them to
disclose publicly if they have shorted Pebblebrook's stock ahead of the
merger vote."

The letter to the SEC can be viewed at https://unitehere.org/wp-content/uploads/UH-to-SEC-re-Lasalle-large-holders-082218.pdf.

UNITE HERE is a small shareholder of LaSalle. UNITE HERE affiliates have
collective bargaining agreements at hotels owned by LaSalle and
Pebblebrook that expire or have expired this year, and negotiations will
take place with their hotel management companies. There could be labor
disputes at these hotels. For additional information on LaSalle and
Pebblebrook's labor exposure, see http://unitehere.org/wp-content/uploads/PebblebookLasalle.pdf.

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