Pebblebrook plans to sell as much as $1 billion in assets after it completes its acquisition of LaSalle, as the combined company seeks to reduce debt through sales.
Pebblebrook, which agreed last week to acquire LaSalle for about $5.2 billion, is already under contract to sell three LaSalle properties (1,614 rooms) for $715 million when the merger closes (properties are Park Central San Francisco, Park Central New York and WestHouse hotel).
Chief Executive Officer, Jon Bortz said he remained bullish on the West Coast and that the additional asset sales would probably increase Pebblebrook’s concentration in the market, meaning the sales would come from other regions.
"We do have an incredibly positive view of San Francisco," said Jon Bortz. "We think the dynamics there are pretty stupendous from a demand-and-supply perspective."
Pebblebrook, which topped a bid from Blackstone to acquire LaSalle, will have 66 hotels, most of which fall in the luxury and higher-upscale categories. The deal, expected to close by early December, will result in the largest owner of independent lodging properties.