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Pebblebrook Ups Its Offer To Buy LaSalle After Hotel REIT Rejected First Bid

The Hotel Palomar in Dupont Circle, one of LaSalle's nine D.C. holdings

After having its unsolicited offer to buy a local competitor rejected, Bethesda, Maryland-based Pebblebrook Hotel Trust is not giving up. 

The hotel REIT has made an offer to acquire Bethesda-based LaSalle Hotel Properties that is roughly 6% higher than its initial bid, the Washington Business Journal reports

The proposal offers a valuation of over $3B with a price of $31.75 per share, up from $30 per share in the first offer. The deal would also allow LaSalle shareholders to choose to receive cash for up to 15% of their holdings in the company. 

LaSalle, which called Pebblebrook's first offer "grossly inadequate," and immediately rejected it, struck a different tone in its announcement of the new offer. 

"The LaSalle Board of Trustees will carefully review Pebblebrook's revised proposal to determine the course of action it believes is in the best interest of the company's shareholders," the REIT said in a statement.

CitiGroup Global Markets and Goldman Sachs are advising LaSalle as it considers the offer. LaSalle has a $3.5B market cap and owns 41 properties in 11 markets. Pebblebrook has a $2.5B market cap and owns 28 hotels in nine states.