Pebblebrook Hotel Trust, LaSalle Hotel Enter Approx. $5.2 Bln Merger Deal

(RTTNews) - Pebblebrook Hotel Trust (PEB) and LaSalle Hotel Properties (LHO) jointly announced that they have entered into a definitive merger agreement under which Pebblebrook will acquire 100% of LaSalle's outstanding common shares in a transaction valued at approximately $5.2 billion. For each LaSalle common share owned, each LaSalle shareholder will receive either a fixed amount of $37.80 in cash or a fixed exchange ratio of 0.92 Pebblebrook common share. A maximum of 30% of the outstanding LaSalle common shares may be exchanged for cash.

LaSalle has terminated its previously announced merger agreement with affiliates of The Blackstone Group L.P. (BX). LaSalle has canceled its special meeting of shareholders previously scheduled for September 6, 2018 relating to the Blackstone-LaSalle Agreement.

"This agreement with Pebblebrook delivers immediate cash value to LaSalle shareholders. The transaction represents a 48% premium to LaSalle's unaffected share price," said Michael Barnello, CEO of LaSalle Hotel Properties.