LaSalle Hotel to be Acquired by Pebblebrook

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Pebblebrook Hotel Trust (NYSE: PEB) announced on September 6 that it will acquire 100% of LaSalle Hotel Properties’ (NYSE: LHO) outstanding common shares for a total of $5b. Citigroup/Goldman Sachs and Bank of America Merrill Lynch/Raymond James served as financial advisers while McGuireWoods LLP as legal adviser for Pebblebrook Hotel Trust. LaSalle shareholders will receive either $37.80 or a fixed exchange ratio of 0.92 in Pebblebrook shares for each share they own in LHO. The transaction was approved unanimously by the members of the Boards of Trustees at both companies. Jon E. Bortz, CEO at Pebblebrook Hotel Trust, is “confident that shareholders will benefit from this premium portfolio of high-quality independent and branded hotels through its capacity to generate strong cash flow, provide for a stable dividend and capitalize on market opportunities.” This deal is expected to generate cost synergies of between $18 and $20 million due to the elimination of overlapping corporate functions.

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