LaSalle Hotel Properties (NYSE:LHO) today announced that the
underwriters of its recent follow-on public offering of common shares
have exercised their overallotment option to acquire an additional
1,612,500
common shares.
Merrill Lynch & Co. is acting as sole book-running manager for the
offering. Raymond James, Wachovia Securities and BMO Capital Markets are
acting as co-lead managers.
After deducting the underwriting discount and offering expenses, the
Company expects to receive total net proceeds from the sale of its
common shares of approximately $119.4
million. The Company
intends to use the net proceeds of this offering 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. The
Company may use these unsecured credit facilities in the future to repay
other outstanding debt, to retire some or all of a series of outstanding
preferred shares, to repurchase equity, to fund its development activity
and property acquisitions, and for working capital and other general
corporate purposes.
A copy of the prospectus supplement and prospectus relating to these
securities may be obtained, when available, by contacting Merrill Lynch
& Co., 4 World Financial Center, New York, NY 10080, Attention:
Prospectus Department, Phone: +1 212 449 1000.
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 31 upscale full-service hotels, totaling
approximately 8,500 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, Gemstone Hotels & Resorts, LLC, Thompson Hotels,
Sandcastle Resorts & Hotels, Davidson Hotel Company, Denihan Hospitality
Group and the Kimpton Hotel & Restaurant Group, LLC.
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 amount of net proceeds, the use of
proceeds from the offering and the use of proceeds from the unsecured
credit facilities referenced above. 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 availability and terms of financing and capital and the
general volatility of securities markets, (ii) the Company’s dependence
on third-party managers of its hotels, including its inability to
implement strategic business decisions directly, (iii) risks associated
with the hotel industry, including competition, increases in wages,
potential unionization, energy costs and other operating costs, actual
or threatened terrorist attacks, any type of flu or disease-related
pandemic, downturns in general and local economic conditions, (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, and (viii) 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.
