After a lengthy process complete with offers and rejections amid multiple suitors, Pebblebrook Hotel Trust has completed its buy of fellow hotel real estate investment trust LaSalle Hotel Properties. With a portfolio of 64 upper-upscale and luxury properties in or near 18 key urban markets, the combined company is now the largest owner of independent lifestyle hotels.
In connection with the closing of the deal, five hotels were sold for $820.8 million in gross proceeds. Park Central San Francisco and Park Central New York/WestHouse New York were sold for $715 million; Gild Hall, New York was disposed of for $38.8 million; and the Embassy Suites Philadelphia Center City was offloaded for $67 million. The latter sales were part of Pebblebrook’s previously announced strategic disposition program to sell between $750 million and $1.25 billion of LaSalle-legacy hotels over the next six to 12 months.
“Our completed property sales demonstrate our ability to quickly execute on our strategic disposition program,” says Thomas Fisher, chief investment officer of Pebblebrook. “We continue to be encouraged with the level of buyer interest in the assets that we’re actively marketing for disposition.”
Jon Bortz will continue to serve as chairman, president and ceo of Pebblebrook. Raymond Martz will continue to serve as chief financial officer. The Pebblebrook Board of Trustees remains unchanged, and the combined company will remain headquartered in Bethesda, Maryland.