Pebblebrook Hotel Revises Non-binding Proposal For LaSalle Hotel Properties

(RTTNews) - Pebblebrook Hotel Trust (PEB) released a letter dated April 13, 2018 to Board of Trustees of LaSalle Hotel Properties (LHO) in which Pebblebrook provided a revised merger proposal. The revised non-binding proposal for 100% of LaSalle's outstanding common shares addresses both price and consideration mix, and implies a merger price of $31.75 per LaSalle common share.

The revised merger proposal represents a premium of 30.2% above LaSalle's unaffected closing price on March 27, 2018, which was the day before Pebblebrook's initial offer was publicly announced.

The implied price of $31.75 per share is based on an increased fixed exchange ratio of 0.8944 Pebblebrook common share for each LaSalle common share. The implied price of this increased offer is $1.75 per share, or 5.8%, above the implied price of Pebblebrook's original offer.

Pebblebrook's revised proposal also provides LaSalle's common shareholders with the option to elect to receive cash up to a maximum of 15% in the aggregate.

LaSalle to have right to a 30-day Go-Shop period for an alternative transaction, subject to customary matching and information rights.