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LaSalle Hotel Properties Board of Trustees Reaffirms Support for Blackstone Transaction

LaSalle Hotel Properties (NYSE:LHO) (“LaSalle” or the “Company”) today
announced that its Board of Trustees (the “Board”) has determined that
the proposal from Pebblebrook Hotel Trust (NYSE:PEB) (“Pebblebrook”)
received on June 11, 2018 to acquire the Company (the “Pebblebrook
Proposal”) 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 Real Estate Partners VIII (the
“Blackstone Merger Agreement”). Under the terms of the Blackstone Merger
Agreement, which the Company 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.

The Board’s determination follows a careful and thorough review of the
Pebblebrook Proposal in consultation with outside financial and legal
advisors. In reaching its determination, the Board considered, among
other factors:

The LaSalle Board remains committed to completing its existing
transaction with Blackstone, which is subject to customary closing
conditions, including the approval of LaSalle’s shareholders. In that
regard, the Company today filed its preliminary proxy statement with the
Securities and Exchange Commission, which included the LaSalle 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.

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 involving
the Company and may be deemed to be solicitation material in respect of
the proposed merger transaction. In connection with the proposed merger
transaction, the Company has filed a preliminary proxy statement (the
“Proxy Statement”) with the Securities and Exchange Commission (the
“SEC”), as well as other relevant materials in connection with the
proposed merger transaction pursuant to the terms of the Agreement and
Plan of Merger, dated as of May 20, 2018, among BRE Landmark Parent
L.P., BRE Landmark L.P., BRE Landmark Acquisition L.P., the Company and
LaSalle Hotel Operating Partnership, L.P. This communication is not a
substitute for the Proxy Statement or for any other document that the
Company has filed or may file with the SEC or send to the Company’s
shareholders in connection with the proposed merger transaction. BEFORE
MAKING ANY VOTING DECISION, INVESTORS AND SECURITY HOLDERS OF THE
COMPANY ARE URGED TO READ THE PROXY STATEMENT AND OTHER DOCUMENTS FILED
WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE
BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE COMPANY, THE
PROPOSED MERGER TRANSACTION AND RELATED MATTERS. Investors and security
holders will be able to obtain free copies of the Proxy Statement and
other documents filed by the Company with the SEC through the website
maintained by the SEC at http://www.sec.gov.
Copies of the documents filed by the Company with the SEC will also be
available free of charge on the Company’s website at www.lasallehotels.com,
or by contacting the Company’s Investor Relations Department at (301)
941- 1500. The Company and its trustees and certain of its executive
officers may be considered participants in the solicitation of proxies
from the Company’s shareholders with respect to the proposed merger
transaction under the rules of the SEC. Information about the trustees
and executive officers of the Company is set forth in its Annual Report
on Form 10-K for the year ended December 31, 2017, which was filed with
the SEC on February 20, 2018, its proxy statement for its 2018 annual
meeting of shareholders, which was filed with the SEC on March 22, 2018
and in subsequent documents filed with the SEC. Additional information
regarding persons who may be deemed participants in the proxy
solicitations and a description of their direct and indirect interests,
by security holdings or otherwise, will also be included in the Proxy
Statement and other relevant materials to be filed with the SEC when
they become available. You may obtain free copies of this document as
described above.

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 Company’s ability to
obtain the shareholder approval required to consummate the merger and
the timing of the closing of the merger, 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 merger 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 transaction,
the response of business partners and competitors to the announcement of
the transaction, and/or potential difficulties in employee retention as
a result of the announcement and pendency of the 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, (xiv) uncertainties
regarding future actions that may be taken by Pebblebrook in furtherance
of its unsolicited proposal, and (xv) 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-looking
statements, whether as a result of new information, future events or
otherwise. Investors should not place undue reliance upon
forward-looking statements.

For additional information or to receive press releases via e-mail,
please visit our website at http://www.lasallehotels.com/

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