LaSalle Hotel Properties Announces Sale of 7,600,000 Common Shares
December 08 2014 - 4:13PM
Business Wire
LaSalle Hotel Properties (NYSE:LHO) today announced the sale of
7,600,000 common shares to Barclays, Deutsche Bank Securities and
Morgan Stanley in an underwritten public offering pursuant to its
effective shelf registration statement previously filed with the
Securities and Exchange Commission. The Company has also granted
the underwriters an option to purchase up to 1,140,000 additional
shares.
The Company intends to use the net proceeds of this offering to
fund all or a portion of the cost of future expected hotel
acquisitions, including, specifically, the acquisition of each of
three hotel properties located in Los Angeles, California,
Portland, Oregon and San Francisco, California for an aggregate
purchase price of approximately $500 million. Pending such use, a
portion of the net proceeds will be used to reduce amounts
outstanding under the Company’s $750 million senior unsecured
credit facility and for general corporate purposes.
Barclays, Deutsche Bank Securities and Morgan Stanley are acting
as the underwriters for the offering. A copy of the prospectus
supplement and prospectus relating to these securities may be
obtained by contacting (a) Barclays Capital Inc., c/o Broadridge
Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717,
email: Barclaysprospectus@broadridge.com, Telephone, (888)
603-5847, (b) Deutsche Bank Securities Inc., 60 Wall Street, New
York, New York 10005, Attention: Prospectus Group, Telephone (800)
503-4611 or email at prospectus.cpdg@db.com, (c) Morgan Stanley
& Co. LLC, c/o Morgan Stanley Prospectus Department, 180 Varick
Street, 2nd Floor, New York, NY 10014 or (d) the Internet site of
the Securities and Exchange Commission at http://www.sec.gov.
This press release shall not constitute an offer to sell or a
solicitation of an offer to buy nor shall there be any sale of
these securities in any state in which such offer, solicitation or
sale would be unlawful prior to registration or qualification under
the securities laws of any state. The offering may be made only by
means of the prospectus and related prospectus supplement.
LaSalle Hotel Properties is a leading multi-operator real estate
investment trust. The Company owns 44 hotels. The properties are
upscale, full-service hotels, totaling more than 11,100 guest rooms
in 13 markets in nine states and the District of Columbia. The
Company focuses on owning, redeveloping and repositioning upscale,
full-service hotels located in urban, resort and convention
markets. LaSalle Hotel Properties seeks to grow through strategic
relationships with premier lodging companies, including Westin
Hotels and Resorts, Hilton Hotels Corporation, Outrigger Lodging
Services, Noble House Hotels & Resorts, Hyatt Hotels
Corporation, Benchmark Hospitality, White Lodging Services
Corporation, Commune Hotels and Resorts, Davidson Hotel Company,
Denihan Hospitality Group, the Kimpton Hotel & Restaurant
Group, LLC, Accor, Destination Hotels & Resorts, HEI Hotels
& Resorts, JRK Hotel Group, Inc., Viceroy Hotel Group, Highgate
Hotels and Access Hotels & Resorts.
This press release, together with other statements and
information publicly disseminated by the Company, contain certain
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. The Company intends
such forward-looking statements to be covered by the safe harbor
provisions for forward-looking statements contained in the Private
Securities Litigation Reform Act of 1995 and includes this
statement for purposes of complying with these safe harbor
provisions. Forward-looking statements, which are based on certain
assumptions and describe the Company's future plans, strategies and
expectations, are generally identifiable by use of the words
“will,” "believe," "expect," "intend," "anticipate," "estimate,"
"project" or similar expressions. Forward-looking statements in
this press release include, among others, statements about the
terms and size of the offering and the use of proceeds from the
offering. You should not rely on forward-looking statements since
they involve known and unknown risks, uncertainties and other
factors that are, in some cases, beyond the Company's control and
which could materially affect actual results, performances or
achievements. Factors that may cause actual results to differ
materially from current expectations include, but are not limited
to, (i) risks associated with the hotel industry, including
competition, increases in wages, energy costs and other operating
costs, potential unionization, actual or threatened terrorist
attacks, any type of flu or disease-related pandemic and downturns
in general and local economic conditions, (ii) the availability and
terms of financing and capital and the general volatility of
securities markets, (iii) the Company's dependence on third-party
managers of its hotels, including its inability to implement
strategic business decisions directly, (iv) risks associated with
the real estate industry, including environmental contamination and
costs of complying with the Americans with Disabilities Act of
1990, as amended, and similar laws, (v) interest rate increases,
(vi) the possible failure of the Company to maintain its
qualification as a REIT and the risk of changes in laws affecting
REITs, (vii) the possibility of uninsured losses, (viii) risks
associated with redevelopment and repositioning projects, including
delays and cost overruns and (ix) the risk factors discussed in the
Company’s Annual Report on Form 10-K as updated in its Quarterly
Reports. Accordingly, there is no assurance that the Company's
expectations will be realized. Except as otherwise required by the
federal securities laws, the Company disclaims any obligation or
undertaking to publicly release any updates or revisions to any
forward-looking statement contained herein (or elsewhere) to
reflect any change in the Company’s expectations with regard
thereto or any change in events, conditions or circumstances on
which any such statement is based.
LaSalle Hotel PropertiesBruce Riggins or Kenneth
Fuller301-941-1500
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