LaSalle REIT offers 7m shares at 3% discount

BETHESDA, MARYLAND LaSalle Hotel Properties is offering 7 million shares at a 3% discount to its Monday closing price.

Priced at US$27.65, the share sale could raise about US$194 million.

LaSalle intends to use the net proceeds of the offering to future hotel acquisitions, including the potential acquisition of a hotel property located in a major U.S. market in which the company already owns properties. A portion of the net proceeds will be used to pay down the company’s senior unsecured credit facility and for general corporate purposes.

The underwriter is Goldman, Sachs & Co., which has an option to purchase up to 1.05 million additional shares.

LaSalle, which has about 74.2 million shares outstanding in addition to this sale, has acquired seven upscale hotels in the past year, spending nearly US$600 million combined. The REIT now owns 35 hotels in the United States totaling more than 8,700 guestrooms.