Market Overview

Leading Independent Proxy Advisory Firms ISS and Glass Lewis Recommend Lasalle Shareholders Vote "For" the Pending Merger with Pebblebrook


LaSalle Recommends Shareholders Vote "FOR" the Transaction in
Advance of the Special Meeting of Shareholders Scheduled for November
27, 2018

LaSalle Hotel Properties (NYSE:LHO) ("LaSalle" or the "Company") today
announced that leading independent proxy advisory firms, Institutional
Shareholder Services Inc. ("ISS") and Glass, Lewis & Co., LLC ("Glass
Lewis") have recommended LaSalle shareholders vote "FOR" the
pending merger with Pebblebrook Hotel Trust (NYSE:PEB).

In recommending LaSalle shareholders vote "FOR" the merger, ISS stated
in its November 15, 2018 report1:

  • "Support for the transaction is warranted in light of the compelling
    rationale, the premium to the unaffected share price and to that of
    the previous Blackstone offer, expected financial benefits to the
    combined entity, and the downside risk of non-approval."
  • "This transaction will provide shareholders with an equity interest in
    a much larger entity that is expected to be one of the largest
    publicly-traded lodging REITs."
  • "The transaction is also expected to result in general and
    administrative cost synergies and be immediately accretive to adjusted
    FFO per share. Given that a portion of the consideration is payable in
    stock, LHO shareholders will be able to participate in these potential

Michael D. Barnello, President and Chief Executive Officer of LaSalle
Hotel Properties, said, "We are pleased that both ISS and Glass Lewis
recognize the value of this strategic combination, which is the
culmination of a thorough strategic alternatives process to maximize
value for shareholders. We look forward to quickly completing this
transaction and strongly urge shareholders to follow ISS and Glass
Lewis' recommendations by voting "FOR" the Pebblebrook merger."

The LaSalle Board recommends that LaSalle shareholders vote "FOR" the
proposal to approve the pending merger with Pebblebrook in advance of
the Special Meeting, which will be held on November 27, 2018 at the
Sofitel Washington DC Lafayette Square, 806 15th Street NW, Washington
DC 20005 at 10:00 a.m., Eastern Time
. All LaSalle shareholders of
record as of the close of business on October 23, 2018 are entitled to

As previously announced on September 6, 2018, LaSalle has entered into a
definitive merger agreement with Pebblebrook, under which Pebblebrook
will acquire 100% of LaSalle's outstanding common shares. Under the
terms of the Pebblebrook Merger Agreement, for each LaSalle common share
owned, each LaSalle shareholder may elect to receive either a fixed
amount of $37.80 in cash or a fixed exchange ratio of 0.92 Pebblebrook
common shares. A maximum of 30% of the outstanding LaSalle common shares
may elect to receive cash (and elections of cash will be subject to pro
rata cutbacks if holders of more than 30% of the outstanding LaSalle
common shares elect cash). LaSalle common shares held by Pebblebrook
will be excluded from the cash election in the transaction, effectively
increasing the maximum cash shares to approximately 33% of the aggregate
number of LaSalle common shares outstanding immediately prior to the
effective time of the transaction. The transaction with Pebblebrook is
subject to customary closing conditions, including the approval of
LaSalle's and Pebblebrook's shareholders. The transaction is expected to
close on November 30, 2018 and is not contingent on receipt of financing.

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

MacKenzie Partners, Inc.

1407 Broadway, 27th Floor

New York, NY 10018

(212) 929-5500


TOLL-FREE (800) 322-2885

News Release

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 pursuant
to the terms of the Agreement and Plan of Merger, dated as of September
6, 2018, as amended on September 18, 2018, by and among Pebblebrook
Hotel Trust, Pebblebrook Hotel, L.P., Ping Merger Sub, LLC, Ping Merger
OP, LP, LaSalle Hotel Properties and LaSalle Hotel Operating
Partnership, L.P. In connection with the proposed merger transaction, on
October 29, 2018, Pebblebrook filed with the Securities and Exchange
Commission (the "SEC") a registration statement on Form S-4 that
includes a joint proxy statement/prospectus of Pebblebrook and LaSalle
that also constitutes a prospectus of Pebblebrook. Pebblebrook and
LaSalle also plan to file other relevant documents with the SEC
regarding the proposed merger transaction. INVESTORS ARE URGED TO READ
obtain a free copy of the joint proxy statement/prospectus and other
relevant documents (if and when they become available) filed by
Pebblebrook or LaSalle with the SEC at the SEC's website at
Copies of the documents filed by Pebblebrook with the SEC will be
available free of charge on Pebblebrook's website at
or by contacting Pebblebrook's Investor Relations at (240) 507-1330.
Copies of the documents filed by LaSalle with the SEC will be available
free by contacting LaSalle's Investor Relations at (301) 941-1500.

Certain Information Regarding Participants

Pebblebrook and LaSalle and their respective trustees, 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 merger 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 in
connection with Pebblebrook's 2018 annual meeting of shareholders. You
can find information about LaSalle's executive officers and directors in
LaSalle's definitive proxy statement filed with the SEC on October 29,
2018 in connection with the special meeting of shareholders. Additional
information regarding the interests of such potential participants will
be included in the other relevant documents filed with the SEC if and
when they become available. You may obtain free copies of these
documents from Pebblebrook or LaSalle using the sources indicated above.

No Offer or Solicitation

This communication 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 (the "Securities

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 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, and (xiv) 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- whether as a result of new
information, future events or otherwise. Investors should not place
undue reliance upon forward-looking statements.

1 Permission to use quotations neither sought nor obtained.

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