Real estate investment trusts Pebblebrook Hotel Trust and LaSalle Hotel Properties are on track to finalize their merger on Nov. 30, pending a special meeting of shareholders for both companies three days prior to closing.
On Sept. 6, the two REITs entered into a definitive merger agreement for Pebblebrook to acquire 100% of LaSalle’s outstanding common shares. For each LaSalle common share owned, each LaSalle shareholder may elect to receive either a fixed amount of $37.80 in cash or a fixed exchange ratio of 0.92 Pebblebrook common share. A maximum of 30% of the outstanding LaSalle common shares may elect to receive cash, subject to pro rata cutbacks. After much back and forth, the final Pebblebrook deal ultimately knocked Blackstone—who had a merger agreement in place since May—out of the running for LaSalle.
The combined company will comprise a portfolio of 66 upper-upscale and luxury hotels located in key urban U.S. markets. That figure comes after Pebblebrook sells certain LaSalle properties in connection with the deal closing. LaSalle will sell three of its hotels, or about 1,600 guestrooms.
Photo of The Roger guestroom: Courtesy of LaSalle Hotel Properties