Pebblebrook Hotel Trust is planning to sell up to $1 billion worth of its assets once it finishes acquiring LaSalle Hotel Properties in an effort to lower its debt.
The company agreed to buy LaSalle for roughly $5.2 billion last week, and it is already under contract to sell three of its properties after the deal closes, according to Bloomberg. These consist of Manhattan’s Park Central New York and WestHouse hotels, along with the Park Central San Francisco.
The deal between the two companies should close by early December and will create the biggest owner of independent hotels. They will have 66 in total, many of which will be luxury and upscale properties.
Although LaSalle initially accepted a $4.8 billion offer from the Blackstone Group to acquire the company, it announced earlier in September that it accept a “superior proposal” from Pebblebrook instead. This will cost LaSalle a $112 million breakup fee, but Pebblebrook has committed to paying for this. [Bloomberg] – Eddie Small