LaSalle Hotel Properties Announces Full Exercise of Underwriters' Option to Purchase Additional Shares
BETHESDA, Md.--(BUSINESS WIRE)-- LaSalle Hotel Properties (NYS: LHO) today announced that, in connection with its previously announced public offering of 8,000,000 common shares at a price to the public of $23.70 per share, the underwriters exercised in full their option to purchase an additional 1,200,000 common shares. Including the option shares, the Company is issuing 9,200,000 shares in the offering, which is expected to close on December 19, 2012.
Citigroup and Raymond James are acting as joint book-running managers for the offering, BMO Capital Markets is acting as lead manager, Deutsche Bank Securities, RBC Capital Markets and Wells Fargo Securities are acting as senior co-managers and BB&T Capital Markets, Piper Jaffray, PNC Capital Markets LLC and RBS are acting as co-managers.
The Company intends to use the net proceeds of the offering, including proceeds from the exercise of the underwriters' option, to fund all or a portion of the cost of future hotel acquisitions, including the potential acquisition of a hotel in a major U.S. market in which the Company already owns properties, 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.
Copies of the preliminary prospectus supplement, final prospectus supplement (when available) and prospectus relating to these securities may be obtained by contacting (a) Citigroup, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, or by calling 1-800-831-9146; (b) Raymond James, 880 Carillon Parkway, St. Petersburg, FL 33716, by emailing email@example.com, or by calling toll-free at 1-800-248-8863; or (c) 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 a prospectus and related prospectus supplement.
LaSalle Hotel Properties is a leading multi-operator real estate investment trust. The Company owns 39 hotels. The hotels are upscale full-service hotels, totaling over 10,300 guest rooms in nine states and the District of Columbia. The Company focuses on owning, redeveloping and leasing 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, Thompson Hotels, 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, 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 "will," "believe," "expect," "intend," "anticipate," "estimate," "project" or similar expressions. Forward-looking statements in this press release include, among others, statements about the expected closing of the offering and potential acquisitions 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) 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. 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 Properties
Bruce A. Riggins and Kenneth G. Fuller, 301-941-1500
KEYWORDS: United States North America District of Columbia Maryland
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