LONDON, UK / ACCESSWIRE / April 18, 2018 / Active-Investors.com has just released a free research report on Pebblebrook Hotel Trust (NYSE: PEB) ("PEB"). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=PEB as the Company's latest news hit the wire. On April 16, 2018, the Company announced that it has made a revised non-binding offer to acquire LaSalle Hotel Properties (NYSE: LHO) ("LHO"). The revised cash plus stock offer is now valued approximately $3.6 billion. LHO's Board had rejected PEB's initial unsolicited offer made in March 2018. PEB expects that the transaction has the potential to create an industry leader of high-quality independent and branded hotels in the US. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Pebblebrook Hotel Trust and LaSalle Hotel Properties most recent news is on our radar and our team decided to put out fantastic reports on these companies that are now available for free below:
www.active-investors.com/registration-sg/?symbol=PEB
www.active-investors.com/registration-sg/?symbol=LHO
Key highlights of PEB's new offer
PEB made the revised offer via a letter to LHO's Board of Trustees on April 13, 2018. In the revised bid, PEB has offered to acquire all outstanding shares of LHO at $31.75 per share. PEB is offering a fixed exchange of 0.8944 PEB share for each LHO's share based on PEB's share price of $35.50 at the close of trading on April 13, 2018. The revised bid offers $1.75 more for each LHO's share which is 5.8% higher when compared to PEB's earlier offer made in March 2018. To make it more attractive to shareholders of LHO, PEB has offered to give them the option of receiving up to 15% of the offer in cash, subject to pro-ration. PEB has also offered to assume or repay LHO's term loans and first mortgage loans. LHO's shareholders are expected to own 50% interest in the merged company and benefit from PEB's dividend payment history. LHO currently pays an annual dividend of $0.92 to its shareholders which could increase to approximately $1.36 based on PEB's current dividend trend.
The offer is not dependent on any financing conditions and PEB is prepared to close the deal within 10 working days of LHO signing the final agreement. PEB is open to providing a "Go Shop" option to LHO as part of the bid but with a 10-day exclusivity period. PEB has proposed that the merged Company's Board of Trustees will have three independent trustees from each company plus the inclusion of Jon E. Bortz.
PEB has requested a personal meeting with LHO's team members for discussions on matters related to due diligence and negotiation
Commenting on the revised offer, Jon E. Bortz, Chairman, President and CEO of PEB, said:
"This revised offer demonstrates our strong commitment to bringing these two similar companies together… Our revised offer provides LaSalle's shareholders with a materially larger premium, the flexibility to determine their mix of consideration, and a governance structure that includes board representation drawn from both companies."
PEB's Rationale behind Offer
PEB believes although each company has a high quality of hotel properties, the merger would be able to create a financially strong entity with a vast selection of independent and branded hotels and resorts in and around key urban markets in the US. The merged entity is expected to have strong cash flow and financial flexibility and strength. This will translate to better and stable dividend for shareholders. The greater financial strength will allow it to have better negotiation power with management companies, brands, and vendors. Since both companies are from the same sector, the integration process after the merger will be much smoother. Overall, PEB believes the merged company will be able to have a better growth the financial stability than on a standalone basis.
LHO's reaction
LHO has confirmed the receipt of the revised unsolicited takeover bid from PEB and has indicated that its Board of Trustees will review PEB's revised offer. LHO's Board will take a decision keeping in mind the best interest of the Company and its stakeholders. In the meanwhile, LHO has asked its shareholders to refrain from taking any action till its Board reaches a decision.
LHO's Board had earlier rejected PEB's first unsolicited non-binding takeover bid in late March 2018. LHO believed that PEB's proposal undervalued LHO's properties and its potential for future growth. The Company believes that its current strategy and financial performance are aimed at creating value for its shareholders and it is better equipped to drive the Company's future growth compared to PEB's proposed takeover plans.
About LaSalle Hotel Properties
LHO is a leading multi-operator real estate investment trust (REIT) and owns 41 hotels. The Company focuses on owning, redeveloping, and repositioning upscale and luxury, full-service hotels located in convention, resort and major urban business markets. The LHO properties are upscale, full-service hotels, with approximately 10,400 guest rooms in 11 markets in seven states and the District of Columbia. It also has strategic tie-ups with premier lodging companies.
About Pebblebrook Hotel Trust
PEB is a publicly traded REIT that is focused on acquiring and investing in upper upscale, full-service hotels located in urban markets in major gateway cities. The Company owns 28 hotels in 9 states and the District of Columbia, with a total of 6,973 guest rooms.
Stock Performance Snapshot
April 17, 2018 - At Tuesday's closing bell, Pebblebrook Hotel Trust's stock was slightly up 0.22%, ending the trading session at $35.80.
Volume traded for the day: 1.50 million shares, which was above the 3-month average volume of 764.22 thousand shares.
Stock performance in the past twelve-month period – up 20.66%
After yesterday's close, Pebblebrook Hotel Trust's market cap was at $2.45 billion.
Price to Earnings (P/E) ratio was at 29.81.
The stock has a dividend yield of 4.25%.
The stock is part of the Financial sector, categorized under the REIT - Hotel/Motel industry. This sector was up 0.4% at the end of the session.
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