WASHINGTON — Bethesda-based Pebblebrook Hotel Trust has raised its bid to buy Bethesda neighbor LaSalle Hotel Properties for the second time in two weeks, calling its latest offer its final merger proposal.
Pebblebrook is now offering to acquire LaSalle in a deal valued at $3.7 billion, up from its $3.6 billion offer earlier this week.
LaSalle issued a statement saying its board would review the offer and respond in due course.
LaSalle rejected Pebblebrook’s original, unsolicited acquisition offer in March, saying it undervalued the company.
Pebblebrook Hotel Trust was founded in 2009 by Jon Bortz, who was chief executive of LaSalle Hotel Properties from 2001 to 2009.
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.
It would also create the second-largest lodging REIT in the U.S., according to Bloomberg data.
The offer, valued at $32.49 per share, is 33 percent more than LaSalle’s price on March 27, when Pebblebrook made its initial acquisition offer. LaSalle shareholders also have the option of taking as much as 20 percent of the offer in cash and the rest in Pebblebrook stock.
“The board remains committed to acting in the best interests of LaSalle’s shareholders and will continue to consider any alternatives that enhance long-term shareholder value,” LaSalle said in a Tuesday statement.
Pebblebrook is not the only company interested in acquiring LaSalle.
Bloomberg, citing people with knowledge of the matter, reports Blackstone Group LP, Starwood Capital Group, Brookfield Property Partners and publicly traded REITs Park Hotels & Resorts and Sunstone Hotel Investors have all expressed interest.
