Bethesda’s Pebblebrook boosts offer to buy LaSalle Hotel Properties

Hotel Monaco owner Pebblebrook Hotel Trust has raised its offer to buy fellow Bethesda-based hotel owner LaSalle Hotel Properties to $3.6 billion. (Courtesy of Google Streetview)

WASHINGTON — A merger between two big Bethesda, Maryland-based hotel property owners is still on the table, with Pebblebrook Hotel Trust raising its bid to buy LaSalle Hotel Properties to $3.6 billion.

LaSalle rejected Pebblebrook’s original, unsolicited acquisition offer in March, saying it undervalued the company. LaSalle said Monday its board was reviewing Pebblebrook’s latest offer.

If the two combined, it would create a hotel real estate investment trust with about 70 upscale hotels, including several Kimpton-managed properties.

Pebblebrook’s portfolio includes the Hotel Monaco in D.C. LaSalle owns D.C.’s Hotel George, Hotel Madera, Hotel Palomar, Hotel Rouge, Liaison Capitol Hill, Mason & Rook Hotel, the Sofitel at Lafayette Square, The Donovan and Topaz Hotel.

Pebblebrook’s revised offer for LaSalle includes a merger price of $31.75 per share, about 6 percent more than its original offer. It also revised its all-stock offer to include cash.

If merged, it would create the second-largest lodging REIT in the U.S., according to Bloomberg data.

Pebblebrook Hotel Trust was founded in 2009 by Jon Bortz, who was chief executive of LaSalle Hotel Properties from 2001 to 2009.

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