Blackstone agrees to $4.8b LaSalle Hotel deal
Affiliates of Blackstone Real Estate Partners VIII, managed by Blackstone Group, have plans to purchase U.S. hotel owner LaSalle Hotel Properties in an all-cash transaction valued at $4.8 billion.
The acquisition follows Blackstone's exit from Hilton Worldwide after nearly 11 years by selling about a 5.8 percent stake, or 15.8 million shares, in the hotel chain operator for about $1.32 billion.
The parties expect to close the deal in the third quarter.
LaSalle Hotel Properties owns 41 properties, which are upscale, full-service hotels, totaling approximately 10,400 guest rooms in 11 markets in seven states and the District of Columbia.
Simpson Thacher represented Blackstone as legal advisor.With this deal, Simpson Thacher has represented Blackstone in three multi-billion dollar acquisitions of public real estate companies during the past four months, including Blackstone Real Estate Partners VIII's $7.6 billion purchase of Gramercy Property Trust, a publicly traded REIT that primarily invests in industrial properties.
The fund also acquired 41 industrial warehouses and two adjacent lots for $358.9 million.