Market Overview

LaSalle Shareholders Approve Merger with Pebblebrook

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Merger on Track to Close November 30, 2018

Announces Final Merger Consideration Election and Allocation
Results

LaSalle Hotel Properties (NYSE:LHO) ("LaSalle" or the "Company") today
announced that its shareholders voted to approve its previously
announced merger with Pebblebrook Hotel Trust (NYSE:PEB)
("Pebblebrook").

At the special meeting of LaSalle common shareholders, held on November
27, 2018, approximately 99% of the shares voted were cast in favor of
the merger, representing more than 86% of LaSalle's total outstanding
common shares. Pebblebrook also announced today that its shareholders
voted to approve the issuance of Pebblebrook common shares to the
holders of LaSalle common shares pursuant to the definitive merger
agreement under which Pebblebrook will acquire 100% of LaSalle's
outstanding common shares (the "Merger Agreement").

Michael D. Barnello, President and Chief Executive Officer of LaSalle
Hotel Properties, said, "We thank the LaSalle shareholders for their
support of this combination. We look forward to continuing to work
closely with Pebblebrook to quickly bring this transaction to a close."

Final Election and Allocation Results

Pursuant to the terms of the Merger Agreement and election materials
previously mailed to LaSalle shareholders, LaSalle shareholders were
permitted to make an election to receive for each LaSalle common share
either 0.92 Pebblebrook common shares (the "share consideration") or an
amount in cash equal to $37.80 (the "cash consideration"). The elections
are subject to proration and adjustment procedures to ensure that the
maximum number of LaSalle common shares eligible to be converted into
the right to receive the cash consideration are equal to 30% of the
aggregate number of LaSalle common shares issued and outstanding
immediately prior to the effective time of the merger. LaSalle common
shares held by Pebblebrook are excluded from the cash election in the
merger, 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 merger.

The election deadline was 5:00 p.m. ET, November 26, 2018. Through the
elections, the holders of 85.8 million LaSalle common shares, or
approximately 77% of the LaSalle common shares deemed outstanding for
purposes of the election (including the shares held by Pebblebrook and
not eligible to receive the cash consideration), elected to receive the
cash consideration. The remaining holders of 25.4 million LaSalle common
shares, or approximately 23% of the LaSalle common shares, either
elected to receive the share consideration, did not submit valid
elections, submitted an election expressing no preference, or represent
the approximately 10 million shares held by Pebblebrook that were not
eligible to receive the cash consideration.

Based on the final election results and applying the proration
provisions set forth in the Merger Agreement, because cash elections
were made with respect to more than 30% of the LaSalle common shares
outstanding immediately prior to the effective time of the merger,
LaSalle common shareholders will receive the following merger
consideration:

  • LaSalle shareholders that validly elected to receive 100% share
    consideration, did not make a valid election or expressed no
    preference, will receive 0.92 Pebblebrook common shares for each
    LaSalle common share;
  • LaSalle shareholders that validly elected to receive 100% cash
    consideration will receive an amount in cash equal to $37.80
    multiplied by (i) the number of such holder's LaSalle common shares
    multiplied by (ii) the cash consideration percentage of approximately
    38.9%, and an amount of Pebblebrook common shares equal to
    approximately 61.1% of the number of such holder's LaSalle common
    shares multiplied by 0.92; and
  • LaSalle shareholders that validly elected a combination of cash and
    share consideration shall be prorated based on the above percentages
    subject to their individual cash/share elections.

The merger, which is expected to close on November 30, 2018, is subject
to the satisfaction of certain remaining customary closing conditions.

LaSalle shareholders who have questions regarding their individual
election result should contact:

MacKenzie Partners, Inc.

1407 Broadway, 27th Floor
New York, NY 10018
proxy@mackenziepartners.com
(212)
929-5500

Or
TOLL-FREE (800) 322-2885

If your broker or other nominee holds your shares, you should also
contact your broker or other nominee for additional information.

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.

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 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 Securities and
Exchange Commission 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.

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