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The Real Deal Los Angeles

Blackstone, Brookfield, Starwood all reportedly interested in buying LaSalle Hotel Properties

The news comes as the REIT weighs Pebblebrook's $3.6B takeover offer
April 17, 2018 12:00PM

Park Central in NY, owned by LaSalle

LaSalle Hotel Properties is reviewing a $3.6 billion takeover offer from Pebblebrook Hotel Trust, but there’s some big name prospective buyers champing at the bit for a shot at the investment trust.

The list of suitors include Blackstone Group, Starwood Capital Group, Brookfield Property Partners, Park Hotels & Resorts Inc., and Sunstone Hotel Investors Inc., according to Bloomberg. They have or are in talks to sign nondisclosure agreements for access to a trove of LaSalle documents outlining financials and other crucial data.

The Bethesda, Maryland-based REIT owns 41 hotels around the country including four in New York, six in Los Angeles, and nine in the nation’s capital. The trust is valued at around $3.4 billion.

Pebblebrook, also based in Bethesda, submitted a revised offer on Monday that included a cash component and is around 6 percent higher than a previous all-stock offer that LaSalle rejected in late March, Bloomberg reported. The revised offer penciled out to around $31.75 per share.

Pebblebrook is active in many of the same markets as LaSalle and owns roughly the same number of assets, but is valued at around $2.4 billion. [Bloomberg] — Dennis Lynch