LaSalle Hotel Properties (NYSE:LHO) today announced that it has priced a
public offering of 5,350,000 common shares at a price of $18.50 per
share. All of the shares are being offered by the Company.
Raymond James and Deutsche Bank Securities are acting as joint
book-running managers for the offering. The underwriters have been
granted a 30-day option to purchase up to an additional 802,500 common
shares to cover overallotments, if any.
The Company intends to use the net proceeds of this offering, which are
expected to be approximately $95.0 million (without giving effect to the
exercise of the underwriters’ overallotment option), to reduce amounts
outstanding under its senior unsecured credit facility and under the
unsecured credit facility of the Company’s taxable REIT subsidiary,
LaSalle Hotel Lessee, Inc., and for general corporate purposes.
A copy of the prospectus supplement and prospectus relating to these
securities may be obtained, when available, by contacting Raymond James
& Associates, Inc., 880 Carillon Parkway, St. Petersburg, FL 33716 or by
calling toll-free at 1-800-248-8863; or Deutsche Bank Securities Inc.,
Attn: Prospectus Department, 100 Plaza One, Jersey City, NJ 07311,
toll-free at 1-800-503-4611 or e-mail at prospectusrequest@list.db.com.
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 a
prospectus and related prospectus supplement.
LaSalle Hotel Properties is a leading multi-operator real estate
investment trust owning 32 upscale full-service hotels, totaling over
8,700 guest rooms in 14 markets in 11 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, Sheraton Hotels & Resorts Worldwide, Inc., Hilton Hotels
Corporation, Outrigger Lodging Services, Noble House Hotels & Resorts,
Hyatt Hotels Corporation, Benchmark Hospitality, White Lodging Services
Corporation, Thompson Hotels, Sandcastle Resorts & Hotels, Davidson
Hotel Company, Denihan Hospitality Group, Dolce Hotels and Resorts, the
Kimpton Hotel & Restaurant Group, LLC and Accor.
This press release, together with other statements and information
publicly disseminated by the Company, contains 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 "believe,"
"expect," "intend," "anticipate," "estimate," "project" or similar
expressions. Forward-looking statements in this press release include,
among others, statements about 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) the Company’s dependence on
third-party managers of its hotels, including its inability to implement
strategic business decisions directly, (ii) risks associated with the
hotel industry, including competition, increases in wages, energy costs
and other operating costs, actual or threatened terrorist attacks,
downturns in general and local economic conditions and cancellation of
or delays in the completion of anticipated demand generators, (iii) the
availability and terms of financing and capital and the general
volatility of securities markets, (iv) risks associated with the real
estate industry, including environmental contamination and costs of
complying with the Americans with Disabilities Act and similar laws, (v)
interest rate increases, (vi) the possible failure of the Company to
qualify 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.
