Blackstone Real Estate Partners VIII has signed an agreement to acquire all outstanding common shares of beneficial interest of LaSalle Hotel Properties. In the cash deal, Blackstone will pay $33.50 per share for a total of $4.8bn. The price represents a premium of approximately 35 percent over LaSalle’s unaffected share price of $24.84 as of March 27. The purchase price also represents a premium of approximately 13 percent to LaSalle’s consensus net asset value of $29.64 per share per FactSet as of May 18. Completion of the deal is set for the third quarter.
“We are pleased to have reached this agreement with Blackstone, which we believe is in the best interests of our shareholders and represents the culmination of a thorough review of strategic alternatives,” said Stuart Scott, chairman of the LaSalle board. “As part of the board’s review, the company and its advisors contacted 20 potential buyers, including strategic parties, brands and private equity firms. 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.”
