Pebblebrook Hotel Trust Completes Acquisition of LaSalle Hotel Properties

BETHESDA, Md.–(BUSINESS WIRE)–Pebblebrook Hotel Trust (NYSE: PEB) (“Pebblebrook” or “the Company”)
today announced the completion of its previously announced acquisition
of LaSalle Hotel Properties (“LaSalle”). With a portfolio of 64
upper-upscale and luxury hotels in or near 18 key urban markets, the
combined company is now the largest owner of independent, lifestyle
hotels.

“We are thrilled to bring together these two outstanding companies to
create the premier, best-in-class lodging REIT, which we expect will
maximize long-term value for all of our shareholders,” said Jon E.
Bortz, Chairman, President and Chief Executive Officer of Pebblebrook.
“We are eager to begin realizing the substantial benefits of this
strategic combination as we execute our proven strategies with our newly
expanded and diversified portfolio of unique hotels and resorts. I want
to acknowledge Michael Barnello for his two decades of accomplishments
at LaSalle and welcome LaSalle’s employees to our Pebblebrook family as
we take the next step in the evolution of our company.”

In connection with the closing of the merger, five hotels were sold,
generating $820.8 million of gross proceeds. The aggregate gross sales
proceeds reflect a 15.6x EBITDA multiple and a 5.5% net operating income
capitalization rate (after an assumed annual capital reserve of 4.0% of
total hotel revenues) based on the trailing twelve-month operating
performance for the period ended October 31, 2018. The gross sales
prices and hotels sold were as follows:

  • $715.0 million, Park Central San Francisco and Park Central New
    York/WestHouse New York
  • $38.8 million, Gild Hall, New York
  • $67.0 million, Embassy Suites Philadelphia Center City

The sales of Gild Hall, New York and Embassy Suites Philadelphia City
Center for a combined $105.8 million of gross proceeds represent the
first sales pursuant to Pebblebrook’s previously announced strategic
disposition program to sell between $750.0 million and $1.25 billion of
LaSalle-legacy hotels over the next six to twelve months. The strategic
disposition program will reduce Pebblebrook’s debt leverage while
enhancing the quality and growth of the combined portfolio. As a result
of these completed property sales and lower than previously forecasted
merger transaction-related costs, Pebblebrook’s total net debt to
trailing 12-month corporate EBITDA is estimated to be 5.1 times.

“Our completed property sales demonstrate our ability to quickly execute
on our strategic disposition program,” noted Thomas C. Fisher, Chief
Investment Officer of Pebblebrook. “We continue to be encouraged with
the level of buyer interest in the assets that we are actively marketing
for disposition.”

Jon E. Bortz will continue to serve as Chairman, President and Chief
Executive Officer of Pebblebrook, Raymond D. Martz will continue to
serve as Chief Financial Officer and Thomas C. Fisher will continue to
serve as Chief Investment Officer. The Pebblebrook Board of Trustees
remains unchanged, and the combined company will remain headquartered in
Bethesda, Maryland. The common shares of the combined company will
continue to trade on the NYSE under the symbol “PEB,” and Pebblebrook
expects its newly issued 6.375% Series E Cumulative Redeemable Preferred
Shares and 6.3% Series F Cumulative Redeemable Preferred Shares, which
were issued in the merger in exchange for LaSalle’s 6.375% Series I
Cumulative Redeemable Preferred Shares and 6.3% Series J Cumulative
Redeemable Preferred Shares, respectively, will begin trading on the
NYSE under the symbols “PEBPrE” and “PEBPrF,” respectively, on December
3, 2018.

About Pebblebrook Hotel Trust

Pebblebrook Hotel Trust is a publicly traded real estate investment
trust (“REIT”) organized to opportunistically acquire and invest
primarily in upper upscale, full-service hotels located in urban markets
in major gateway cities. The Company owns 64 hotels, totaling
approximately 15,400 guest rooms, located in 11 states and the District
of Columbia, in the following markets: Del Mar, California; Los Angeles,
California (Beverly Hills, Santa Monica and West Hollywood); San Diego,
California; San Francisco, California; Santa Cruz, California;
Washington, DC; Coral Gables, Florida; Key West, Florida; Naples,
Florida; Buckhead, Georgia; Chicago, Illinois; Boston, Massachusetts;
Minneapolis, Minnesota; New York, New York; Portland, Oregon;
Philadelphia, Pennsylvania; Nashville, Tennessee; Columbia River Gorge,
Washington; and Seattle, Washington. For more information, please visit
us at www.pebblebrookhotels.com
and follow us on Twitter at @PebblebrookPEB.

Cautionary Statement Regarding Forward Looking
Statements

Certain statements in this communication that are not in the present or
past tense or that discuss the expectations of Pebblebrook are
forward-looking statements within the meaning of Section 27A of the
Securities Act and Section 21E of the Securities Exchange Act of 1934,
as amended. These forward-looking statements, which are based on current
expectations, estimates and projections about the industry and markets
in which Pebblebrook operates and beliefs of and assumptions made by
Pebblebrook management, involve uncertainties that could significantly
affect the financial results of Pebblebrook. Pebblebrook intends such
forward-looking statements to be covered by the safe harbor provisions
for forward-looking statements contained in the Private Securities
Litigation Reform Act of 1995 and include this statement for purposes of
complying with these safe harbor provisions. Words such as “believe,”
“expect,” “intend,” “anticipate,” “estimate,” “project” and variations
of such words and similar expressions are intended to identify such
forward looking statements, which generally are not historical in
nature. Such forward-looking statements may include, but are not limited
to, statements about estimated debt leverage and the estimated timing of
listing for common and preferred shares. Pebblebrook does not undertake
any duty to update any forward-looking statements appearing in this
document.

For additional information or to receive press releases via email,
please visit our website at
www.pebblebrookhotels.com

الموقع يستعمل RSS Poster بدعم القاهرة اليوم