LaSalle Hotel Properties agreed to be acquired by affiliates of Blackstone Group LP's Blackstone Real Estate Partners VIII for $33.50 per share in an all-cash deal valued at $4.8 billion.
LaSalle's board of trustees unanimously approved the transaction, which the company said reflects a premium of 35% over its unaffected share price of $24.84 as of March 27 and a premium of 13% to LaSalle's May 18 FactSet consensus net asset value of $29.64 per share.
The full-service hotel real estate investment trust received and rejected a $30.00 per share takeover offer from peer Pebblebrook Hotel Trust in March, which was followed by a revised offer of $31.75 and a final offer of $32.49 per share. Under the final offer, Pebblebrook offered 0.9085 Pebblebrook common share for each LaSalle common share and gave LaSalle shareholders the option to choose up to 20% of the consideration in cash. LaSalle had advised shareholders to take no action as of April 24.
Completion of the Blackstone deal is expected in the third quarter, subject to customary closing conditions, including approval from LaSalle shareholders.
Citigroup Global Markets Inc. and Goldman Sachs & Co. LLC are serving as financial advisers to LaSalle, and Goodwin Procter LLP and DLA Piper LLP (US) are acting as legal counsel.
Morgan Stanley & Co. LLC and J.P. Morgan are acting as financial advisers to Blackstone, and Eastdil Secured LLC is serving as its real estate adviser. Simpson Thacher & Bartlett LLP is acting as legal adviser to Blackstone.
