LaSalle Hotel Properties Board Reiterates Support For Blackstone Transaction

(RTTNews) - LaSalle Hotel Properties (LHO) said that its Board of Trustees has reaffirmed its support for the transaction with affiliates of Blackstone Real Estate Partners VII.

The Board has determined that the proposal from Pebblebrook Hotel Trust (PEB) received on June 11, 2018 to acquire LaSalle does not constitute, and could not reasonably be expected to lead to a "superior proposal" as defined in LaSalle's definitive agreement with affiliates of Blackstone.

Under the terms of the Blackstone merger deal, which LaSalle entered into on May 20, 2018, Blackstone will 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.

According to LaSalle's Board, the key terms included in the Pebblebrook proposal are "substantially similar" to the prior proposal submitted by Pebblebrook on May 19, 2018, which was previously evaluated by the Board alongside the Blackstone proposal submitted on the same date.

Further, the board noted that Pebblebrook's proposal, which includes 80 percent stock consideration, continues to fail to address the significant price risks and uncertainties for LaSalle shareholders that were earlier communicated to Pebblebrook.

Meanwhile, the Blackstone merger agreement represents immediate and certain cash value, is in the best interest of shareholders and is expected to close as early as August 2018, the Board said.

LaSalle has today filed its preliminary proxy statement with the Securities and Exchange Commission, which included the Board's unanimous recommendation that LaSalle's shareholders vote "for" the proposal to approve the merger and the other transactions contemplated by the Blackstone merger agreement. The transaction is not contingent on receipt of financing.