LaSalle Hotel Properties announced its board of trustees has determined the proposal from Pebblebrook Hotel Trust received on June 11 to acquire the company 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.
Under the terms of the Blackstone Merger Agreement, which LaSalle Hotel entered into on May 20, Blackstone will acquire all outstanding common shares of beneficial interest of LaSalle Hotel for $33.50 per share in an all-cash transaction valued at $4.8 billion.
The Blackstone Merger Agreement is expected to close as early as August 2018.
However, Pebblebrook Hotel Trust released a statement, stating it has almost doubled its ownership of common shares of LaSalle Hotel Properties to 10 million common shares, or approximately 9 percent of LaSalle Hotel’s outstanding common shares. Pebblebrook is now one of the largest shareholders of LaSalle Hotel.
“The board of Pebblebrook continues to believe that a strategic combination with LaSalle represents the greatest value-maximizing opportunity for the shareholders of both LaSalle and Pebblebrook,” said Jon Bortz, chairman, president and CEO of Pebblebrook Hotel Trust. “Our large, increased ownership position further demonstrates our commitment and determination to complete this combination. We are not surprised by the broad support we have received from shareholders, who have told us and LaSalle that our current proposal is clearly superior to LaSalle’s agreement with Blackstone. We are surprised that LaSalle’s board does not recognize our proposal to be superior.