Commenting on the announced merger between hotel peer LaSalle Hotel Properties and affiliates of Blackstone Group LP, Jon Bortz, chairman, president and CEO of Pebblebrook Hotel Trust, said the company is disappointed that the board of LaSalle "has chosen not to pursue the unique opportunity that we presented."
Pebblebrook said it believes the $33.50 per-share offer by Blackstone is "significantly" lower than its proposal with an implied offer price of $35.89, based on Pebblebrook's May 18 closing price. The proposal came with an option for LaSalle shareholders to receive up to 20% of the consideration in cash.
LaSalle rejected two other offers from Pebblebrook in March and April and had advised its shareholders to take no action as of April 24.
Bortz said the combination of the two "highly similar" companies would have resulted in synergies and created an industry leader, particularly in the independent and lifestyle segment.
LaSalle and Blackstone's agreement is expected to be finalized in the third quarter, subject to certain conditions, including approval from LaSalle shareholders.
