EXHIBIT 99.1
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LaSalle Hotel Properties
3 Bethesda Metro Center, Suite 1200
Bethesda, MD 20814
Ph. (301) 941-1500
Fax (301) 941-1553
www.lasallehotels.com
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LASALLE HOTEL PROPERTIES AND LASALLE INVESTMENT MANAGEMENT
ANNOUNCE FORMATION OF JOINT VENTURE
BETHESDA, MD / CHICAGO, IL, APRIL 17, 2008 - LaSalle Hotel Properties
(NYSE: LHO), a leading multi-operator real estate investment trust, and
LaSalle Investment Management, a leading global real estate investment
manager, today announced a joint venture to seek U.S. hotel investments in
high barrier-to-entry urban and resort markets. The two companies plan to
invest up to an aggregate of $250 million of equity in the joint venture.
With anticipated leverage, this will result in investments of up to $700
million. LaSalle Hotel Properties will own 15 percent of the joint venture
and have the opportunity to earn a promote, or incentive fee, based upon
achieving specific return thresholds based on each partner's equity
investment. LaSalle Hotel Properties will receive additional income for
providing acquisition, asset management, project redevelopment oversight
and financing services. The anticipated acquisition period is up to three
years with a total joint venture life of up to seven years.
"We are thrilled to be partnering with such a well respected and
successful global real estate fund manager," said Jon Bortz, Chairman and
Chief Executive Officer of LaSalle Hotel Properties. "Our venture with
LaSalle Investment Management will seek investments consistent with our
current acquisition strategies and return objectives. We believe the joint
venture will diversify our income stream, enhance our returns and increase
shareholder value. We are extremely excited about this venture and the
unique investment opportunities it will create," continued Mr. Bortz.
"Our firm has long had a successful relationship with LaSalle Hotel
Properties' management team and this venture further demonstrates our
commitment to providing innovative investment strategies for our clients.
LaSalle Hotel Properties has built a best-in-class hotel investment
platform which nicely complements our own acquisition, asset management and
investment strategy capabilities," said Jeff Jacobson, CEO, LaSalle
Investment Management.
"LaSalle Investment Management has a long history of investing with
top operating partners. Given the state of the real estate capital markets
we believe this will be a timely vehicle to capitalize on lodging
opportunities," commented Dan Witte, Managing Director, LaSalle Investment
Management.
ABOUT LASALLE HOTEL PROPERTIES
LaSalle Hotel Properties is a leading multi-operator real estate investment
trust owning 31 upscale and luxury full-service hotels, totaling
approximately 8,500 guest rooms in 14 markets in 11 states and the District
of Columbia. The Company focuses on owning, redeveloping and repositioning
upscale and luxury 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, Sheraton Hotels & Resorts Worldwide, Inc., Hilton
Hotels Corporation, Crestline Hotels and Resorts, Inc., Outrigger Lodging
Services, Noble House Hotels & Resorts, Hyatt Hotels Corporation, Benchmark
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Hospitality, White Lodging Services Corporation, Gemstone Hotels & Resorts,
LLC, Thompson Hotels, Sandcastle Resorts & Hotels, Davidson Hotel Company,
Denihan Hospitality Group and the Kimpton Hotel & Restaurant Group, LLC.
For additional information or to receive press releases via e-mail, please
visit our website at www.lasallehotels.com
ABOUT LASALLE INVESTMENT MANAGEMENT
LaSalle Investment Management, Inc., a member of the Jones Lang LaSalle
group (NYSE: JLL), is a leading global real estate investment manager, with
$50.4 billion of assets under management. LaSalle Investment Management is
active across a range of real estate capital and operating markets
including private and public, debt and equity. LaSalle Investment
Management is authorised and regulated for investment business in the UK by
the Financial Services Authority.
For more information, visit www.lasalle.com.
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 "believe," "expect," "intend,"
"anticipate," "estimate," "project" or similar expressions. Forward-looking
statements in this press release include, among others, statements about
investment opportunities and equity, leverage, enhancing returns,
increasing shareholder value, acquisition period and life of the joint
venture. 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, (ix) risks associated with development
activity, including project cost overruns and delays, and (x) 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.
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For more information, contact:
Hans Weger, Chief Financial Officer, LaSalle Hotel Properties -
301/941-1500
Stefanie Murphy, Global Corporate Communications, LaSalle
Investment Management, 312/228-2121
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