LaSalle Hotel Properties Announces Acquisition of Two San Francisco Hotels for Total Purchase Price of $47.8 Million

  LaSalle Hotel Properties Announces Acquisition of Two San Francisco Hotels
  for Total Purchase Price of $47.8 Million

Business Wire

BETHESDA, Md. -- August 2, 2013

LaSalle Hotel Properties (NYSE: LHO) today announced that it acquired the
Harbor Court Hotel and Hotel Triton, both located in San Francisco, CA for
$47.8 million. The Company funded the transaction with borrowings from its
Senior Unsecured Credit Facility.

Harbor Court Lobby (Photo: LaSalle Hotel Properties)

Harbor Court Lobby (Photo: LaSalle Hotel Properties)

Harbor Court Hotel

The 131-room, Harbor Court Hotel is located at 165 Steuart Street in San
Francisco’s financial district on the Embarcadero and offers stunning views of
the San Francisco Bay. The hotel is proximate to many downtown attractions
including the Ferry Building, Embarcadero Center, AT&T Park and the Moscone
Convention Center. The property’s location and access to popular restaurants,
shops and entertainment venues make it an attractive destination for both
leisure and business travelers. Originally built in 1926, the building was
extensively renovated and converted in 1991 to the Harbor Court Hotel.

The Harbor Court Hotel houses the 230-seat, upscale, contemporary Japanese
Restaurant “Ozumo,” which is leased to a third-party restaurateur and open for
lunch and dinner. Ozumo was created in May 2001 and has been very successful
since opening.

“We are very excited to have acquired these two well-located assets in one of
the strongest markets in the United States,” said Michael D. Barnello,
President and Chief Executive Officer of LaSalle Hotel Properties. “After
exceeding cyclical prior peak demand in 2011, the market continues to grow. We
are equally encouraged by the very limited supply growth slated for the next
several years.”

Hotel Triton

Hotel Triton is a 140-room hotel located at 342 Grant Avenue in the Union
Square neighborhood of San Francisco. The hotel is close to the Financial
District, less than a mile away from Moscone Convention Center and sits at the
gateway to Chinatown. The building was originally constructed in 1912 and was
converted to a hotel in 1991. In 2012, the property completed a guestroom
renovation.

Both hotels will continue to be operated by Kimpton Hotels and Restaurants,
which is headquartered in San Francisco, CA. Harbor Court Hotel and Hotel
Triton are subject to building leases, both of which expire in approximately
34 years.

LaSalle Hotel Properties is a leading multi-operator real estate investment
trust. The Company owns 42 hotels and a mezzanine loan secured by two hotels
in Santa Monica, CA. The properties are upscale full-service hotels, totaling
almost 10,900 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 outlook for supply growth
in San Francisco. 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 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.

  For additional information or to receive press releases via e-mail, please
                  visit our website at www.lasallehotels.com

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Contact:

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