LaSalle Hotel Properties Announces the Sale of 400,000 Additional Series I Preferred Shares Pursuant to the Underwriters’

  LaSalle Hotel Properties Announces the Sale of 400,000 Additional Series I
  Preferred Shares Pursuant to the Underwriters’ Option

Business Wire

BETHESDA, Md. -- March 12, 2013

LaSalle Hotel Properties (NYSE:LHO) today announced that the underwriters of
its recent public offering of 6.375% Series I Cumulative Redeemable Preferred
Shares have exercised their option to purchase an additional 400,000 Series I
Preferred Shares, bringing the total number of shares issued in this offering
to 4,400,000 Series I Preferred Shares.

Wells Fargo Securities, BofA Merrill Lynch and Citigroup acted as joint
book-running managers for the offering, RBC Capital Markets acted as lead
manager, Barclays, BMO Capital Markets, Deutsche Bank Securities and Raymond
James acted as senior co-managers, and Baird, MLV & Co and US Bancorp acted as
co-managers.

The Company intends to use the net proceeds from this offering for one or more
of the following purposes: to redeem a portion of its outstanding Series G
Preferred Shares, to reduce amounts outstanding under its senior unsecured
credit facility, and for acquisitions, working capital and other general
corporate purposes.

A registration statement relating to the securities became effective upon
filing with the Securities and Exchange Commission. The offering will be made
only by means of a preliminary prospectus supplement and accompanying
prospectus forming part of the registration statement. Copies of the final
prospectus supplement and prospectus relating to these securities may be
obtained by contacting (a) Wells Fargo Securities, LLC, 1525 West W.T. Harris
Blvd., NC0675, Charlotte, North Carolina 28262, Attention: Capital Markets
Support, email: cmclientsupport@wellsfargo.com, or by calling toll-free at
1-800-326-5897; (b) Merrill Lynch, Pierce, Fenner & Smith Incorporated, 222
Broadway, 7th Floor, New York, New York 10038, Attn: Prospectus Department;
email: dg.prospectus_requests@baml.com; (c) Citigroup Global Markets Inc., c/o
Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717,
or by calling 1-800-831-9146; or (d) 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.

LaSalle Hotel Properties is a leading multi-operator real estate investment
trust. The Company owns 40 hotels and a mezzanine loan secured by two hotels
in Santa Monica, CA. The properties are upscale full-service hotels, totaling
over 10,600 guest rooms in 13 markets in nine states and the District of
Columbia. The Company focuses on owning, redeveloping and repositioning
upscale and luxury, full-service hotels located in convention, resort and
major urban business 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 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.

Contact:

LaSalle Hotel Properties
Bruce A. Riggins and Kenneth G. Fuller, 301-941-1500
 
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