WASHINGTON, DC–After multiple rounds of offers from Pebblebrook Hotel Trust, LaSalle Hotel Properties has agreed to be acquired — only by Blackstone Real Estate Partners VIII. The global asset manager will acquire all outstanding common shares of LaSalle for $33.50 per share in an all-cash transaction valued at $4.8 billion.
The transaction, which has been unanimously approved by LaSalle's Board of Trustees, represents a premium of approximately 35% over LaSalle's share price of $24.84 as of March 27, 2018, the day before Pebblebrook's announcement of a proposal to acquire the company in an all-stock transaction. The purchase price also represents a premium of approximately 13% to LaSalle's consensus net asset value of $29.64 per share as of May 18, 2018.
As part of the Board's review, LaSalle contacted 20 potential buyers, including strategic parties, brands and private equity firms, according to Chairman of the Board Stuart L. Scott. Ten potential buyers executed confidentiality agreements and received non-public information, and the board engaged in extensive negotiations over price and terms, he said.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
