Days after making its retreat from Hilton, Blackstone Group is back in the hotel business.
The private equity firm will purchase LaSalle Hotel Properties for $4.8 billion, which was deemed more attractive to LaSalle than a competing bid made by Pebblebrook Hotel Trust.
Commenting on the Blackstone offer, LaSalle chairman Stuart Scott said: "After careful consideration of multiple proposals received, the board determined that this transaction represents the most compelling opportunity for LaSalle’s shareholders, delivering a significant premium with immediate and certain cash value."
The LaSalle portfolio numbers 41 properties with 10,400 rooms.
The transaction will be finalized in the third quarter of 2018, subject to the final approval of LaSalle’s shareholders.
"We are thrilled to acquire LaSalle and have the opportunity to invest in its high-quality urban hotel portfolio," said Tyler Henritze, head of US real estate acquisitions for Blackstone.
Stuart L. Scott, chairman of the board of LaSalle revealed the company had been in initial discussions with 10 bidders made up of strategic parties, brands and private equity firms.
