After Hilton success, Blackstone makes $4.8B bid to buy LaSalle Hotel Properties

Private equity giant outmaneuvered Pebblebrook Hotel Trust

New York /
May.May 21, 2018 11:10 AM
Park Central New York and Jonathan Gray

Park Central New York and Jonathan Gray

Blackstone Group outmaneuvered Pebblebrook Hotel Trust to buy luxury hotel owner LaSalle Hotel Properties with an all-cash bid of $4.8 billion, including debt.

The agreement comes just three days after Blackstone sold its remaining shares in Hilton Hotels, making its investment in the company most profitable leveraged buyout in history at $14 billion.

Blackstone agreed to buy LaSalle at $33.50 per share, or a premium of almost 35 percent above the company’s share price on March 27, Bloomberg reported.

That was the day that Pebblebrook first announced a proposed all-stock deal to buy LaSalle. The company made three public bids, with the last one disclosed on April 24 valuing LaSalle’s shares at $35.44.

Even though Pebblebrook’s proposal is higher than Blackstone’s, LaSalle’s board preferred the certainty of the latter, people familiar with the process told Bloomberg.

“After careful consideration of multiple proposals received, the board determined that this transaction represents the most compelling opportunity for LaSalle’s shareholders, delivering a significant premium with immediate and certain cash value,” LaSalle chairman Stuart Scott said of the Blackstone agreement.

LaSalle owns four hotels in Manhattan, according to its website: Gild Hall, Park Central New York, the Roger and WestHouse.

Blackstone’s offer requires two-thirds support from LaSalle’s shareholders to go forward. The deal is scheduled to be completed in the third quarter.

If LaSalle chose to terminate the deal, it would pay a breakup fee of $112 million. Should Blackstone walk away, it would pay a reverse breakup fee of $336 million, sources said. [Bloomberg]Rich Bockmann


Related Articles

arrow_forward_ios
WhyHotel opening living space at Rudin’s 110 Wall Street
WhyHotel opening living space at Rudin’s 110 Wall Street
WhyHotel opening living space at Rudin’s 110 Wall Street
44 West 37th Street and Ray Yadidi of the Sioni Group (Google Maps, LeadCandy)
Yadidis sell Midtown South office building for $49M
Yadidis sell Midtown South office building for $49M
Construction labor management platform Bridgit raises $24M
Construction labor management platform Bridgit raises $24M
Construction labor management platform Bridgit raises $24M
The boom is largely fueled by investors snagging a large number of single properties in a multitude of deals, rather than previous booms featuring plentiful portfolio sales, or sales of entire companies. (iStock)
CRE has biggest-ever sales quarter
CRE has biggest-ever sales quarter
Givenchy is open at 92 Greene Street in Soho NYC and Gucci has a pop up 446 West 14th Street in Meatpacking District NYC. (Google Maps, Thor)
Tony retailers flocking back downtown
Tony retailers flocking back downtown
Long Island industrial vacancy rate 40% lower than pre-pandemic
Long Island industrial vacancy rate 40% lower than pre-pandemic
Long Island industrial vacancy rate 40% lower than pre-pandemic
CHIP Executive Director Jay Martin, RSA President Joseph Strasburg and Gov. Kathy Hochul (Getty, Strasburg via Jeffersons Siegel)
Landlords smell “good cause” in Hochul’s new tenant protections
Landlords smell “good cause” in Hochul’s new tenant protections
Ron Burkle’s $155M play on Wall Street: American Stock Exchange HQ
Ron Burkle’s $155M play on Wall Street: American Stock Exchange HQ
Ron Burkle’s $155M play on Wall Street: American Stock Exchange HQ
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...