LaSalle Hotel Properties to Be Acquired by Blackstone for $33.50 per Share in $4.8 Billion Transaction

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USA, Bethesda, Maryland. May 24, 2018

LaSalle Hotel Properties (NYSE: LHO) (“LaSalle” or the “Company”) announced that it has entered into a definitive agreement with
affiliates of Blackstone Real Estate Partners VIII, under which
Blackstone, a leading global asset manager, will acquire all outstanding
common shares of beneficial interest of LaSalle for $33.50 per share in
an all-cash transaction valued at $4.8 billion.

The transaction, which has been unanimously approved by LaSalle's
Board of Trustees (the “Board”), represents a premium of approximately
35 percent over LaSalle's unaffected share price of $24.84 as of March
27, 2018, the day before the public announcement of a proposal to
acquire the Company in an all-stock transaction. The purchase price also
represents a premium of approximately 13 percent to LaSalle's consensus
net asset value (“NAV”) of $29.64 per share per FactSet as of May 18,
2018.

“We are pleased to have reached this agreement with Blackstone, which
we believe is in the best interests of our shareholders and represents
the culmination of a thorough review of strategic alternatives,” said
Stuart L. Scott, Chairman of the Board of LaSalle. “As part of the
Board's review, the Company and its advisors contacted 20 potential
buyers, including strategic parties, brands and private equity firms. As
a result, 10 potential buyers executed confidentiality agreements and
received non-public information, and the Board engaged in extensive
negotiations over price and terms. After careful consideration of
multiple proposals received, the Board determined that this transaction
represents the most compelling opportunity for LaSalle's shareholders,
delivering a significant premium with immediate and certain cash
value.”

Michael D. Barnello, President and Chief Executive Officer of LaSalle
said, “After a robust and competitive process, we are pleased to enter
into this transaction with Blackstone, which has a proven ability to
complete large transactions on agreed terms and has extensive experience
in the real estate industry.”

Tyler Henritze, head of US real estate acquisitions for Blackstone, added, “We are thrilled to acquire LaSalle and have the opportunity to invest in its high-quality urban hotel portfolio.”

Completion of the transaction, which is expected to occur in the third quarter of 2018, is contingent upon customary closing conditions, including the approval of LaSalle's shareholders. The transaction is not contingent on receipt of financing.

Pursuant to LaSalle's previously announced dividend policy, the Company expects to pay a quarterly dividend of $0.225 per common share of beneficial interest for the quarter ending June 30, 2018.

Advisors

Citigroup Global Markets Inc. and Goldman Sachs & Co. LLC are acting as financial advisors to LaSalle and Goodwin Procter LLP and DLA Piper LLP (US) are acting as legal counsel.

Morgan Stanley & Co. LLC and J.P. Morgan are acting as financial advisors and Eastdil Secured LLC is acting as real estate advisor to Blackstone.  Simpson Thacher & Bartlett LLP is acting as legal advisor to Blackstone.