Things could be looking up for Pebblebrook Hotel Trust in its race to win out against Blackstone Real Estate Partners VIII for acquisition dibs of real estate investment trust LaSalle Hotel Properties.
The REIT’s board of trustees unanimously voted thatcould reasonably be viewed as superior as defined in LaSalle’s merger agreement with affiliates of Blackstone. The latest proposal on the table is a transaction that translates to 0.92 common shares of Pebblebrook per common share of LaSalle, with the option for LaSalle shareholders to elect to receive a fixed amount of $37.80 per share in cash up to a maximum of 30% in aggregate of the consideration, subject to pro ration.
However, LaSalle still remains bound by the terms of the Blackstone agreement entered into on May 21. The board has still not changed its recommendation to support the Blackstone deal and is not announcing its support for Pebblebrook yet, either.
Even so, Pebblebrook chairman, president and ceo Jon Bortz says it’s a step in the right direction for the two REITs to make a deal.
“We continue to believe our offer is superior to the Blackstone proposal, and we look forward to engaging with LaSalle’s Board to quickly reach an agreement to merge our two companies and allow shareholders to maximize immediate and long-term value,” he says.
If the vote on the Blackstone deal occurs as planned on Sept. 6, Pebblebrook will vote its 10.8 million LaSalle common shares against the transaction.
Photo of the Heathman guestroom: Courtesy of LaSalle Hotel Properties