Bethesda-Based Hotel REIT Rejects $3B Acquisition Offer From Local Competitor

LaSalle Hotel Properties, a Bethesda-based REIT, has rejected an acquisition offer made by a local competitor.

Pebblebrook Hotel Trust, another Bethesda-based REIT, earlier this month offered an unsolicited proposal to buy LaSalle in an all-stock transaction, but LaSalle's board unanimously turned down the offer, the REIT announced Wednesday.

The deal would have valued LaSalle at more than $3B, according to Reuters. LaSalle said the offer "significantly undervalues" the REIT's hotel portfolio and its growth opportunities.

"We have concluded that the proposal is grossly inadequate and is, therefore, not in the best interests of our shareholders," LaSalle Board Chairman Stuart Scott said in a release.

LaSalle owns 41 properties totaling 10,400 rooms in 11 markets. Its D.C. portfolio consists of nine hotels including the Hotel Palomar, Liaison Capitol Hill, Hotel Madera and the Mason & Rook Hotel.

Pebblebrook said Wednesday it is prepared to engage in discussions around price. It owns 28 hotels with 6,972 rooms in nine states, including D.C.'s Hotel Monaco.

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