Multiple Offers Compete for LaSalle Hotel Properties
In the wake of an announcement that Blackstone Group had agreed to buy LaSalle Hotel Properties, news broke that Pebblebrook would be increasing its own competing offer as well
First, the news came that Blackstone Group LP had agreed to buy the luxury hospitality company LaSalle Hotel Properties. Soon after, Pebblebrook Hotel Trust was reported to be continuing its own pursuit of the real estate investment trust, having subsequently upped its own offer.
But even with Pebblebrook increasing its offer, reports indicate that LaSalle Hotel Property officials still expect to sell to Blackstone in the months to come. The reported agreement that has been reached sees that sale happening at $4.8 billion, with a news release stating that it would "acquire all outstanding common shares of beneficial interest in LaSalle."
The LaSalle and Blackstone Deal
The deal between LaSalle Hotel Properties and Blackstone Group LP would see Blackstone acquiring LaSalle for a cash price that comes in at $33.50 a share, with that deal being expected to close in the third quarter of 2018, pending the approval of the real estate investment trust's own shareholders.
Where Pebblebrook comes in is that the company has been engaged in its own pursuit of LaSalle Hotel Properties for months, having most recently upped its own offer to $32.49 a share, which is an increase of 20 percent. That offer could have also been paid out in cash.
Pebblebrook's Increased Offer
Following the announced sale of LaSalle to Blackstone, Pebblebrook officials announced that it was proposing a new increased price of $36.49 per share and that 20 percent of that would still be in cash. It remains to be seen whether this increased offer will have any effect on the previously announced deal between LaSalle and Blackstone.
The LaSalle portfolio includes 41 properties with more than 10,000 rooms in urban and resort markets. In the news release announcing the deal, Tyler Henritze, head of U.S. real estate acquisitions for Blackstone, noted that his company is "thrilled to acquire LaSalle and have the opportunity to invest in its high-quality urban hotel portfolio."
LaSalle has more independent properties than most hotel REITs do, which was one reason a potential Pebblebrook-LaSalle merger seemed to make sense to Pebblebrook officials and industry analysts. The companies also have a shared history, with Pebblebrook President and CEO Jon Bortz previously working in the same capacity at LaSalle.
LaSalle Hotel Properties currently has the following project underway:
Citadines Rochor Singapore is part of an upcoming integrated development that will also comprise a retail podium . …[READ MORE]
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