LaSalle Hotel Properties Announces New $750 Million Credit Facility

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. December 16, 2011

December 15, 2011 - LaSalle Hotel Properties (NYSE: LHO) today announced that it has successfully entered into a new $750.0 million senior unsecured credit facility. The new facility replaces the Company's $450.0 million facility, which was scheduled to mature in April, 2012. The new facility matures on January 30, 2017, including extensions subject to certain conditions. Additionally, LaSalle Hotel Lessee, Inc., the Company's taxable REIT subsidiary refinanced its $25.0 million revolver with U.S. Bank National Association, with no change in capacity, on similar terms as the senior unsecured credit facility.

The senior unsecured credit facility includes an accordion feature which, subject to certain conditions, entitles the Company to request additional lender commitments, allowing for total commitments up to $1.0 billion. The interest rate for the new credit facility is based on a pricing grid with a range of 175 to 270 basis points over LIBOR, based on the Company's leverage ratio. For Company leverage 4.75 times EBITDA or lower, the interest rate range is LIBOR plus 175 to 200 basis points. The facility was arranged by Citigroup Global Markets Inc., RBS Securities Inc. and BMO Capital Markets as Joint Lead Arrangers and Book Running Managers.

“We appreciate the confidence shown by the 17 members of this bank group and we are pleased with the size and pricing of the new credit facility,” said Bruce Riggins, Chief Financial Officer of LaSalle Hotel Properties. “We have been committed to a conservative balance sheet strategy since the Company's inception and are pleased with the overwhelming support of the banking community, which enabled us to increase the size of our credit facility by $300.0 million.”

The Park Central Hotel
The Company reaffirms that it expects to close on its purchase of the Park Central Hotel between December 20, 2011 and January 10, 2012. The Company intends to fund the Park Central acquisition with cash on hand, borrowings from its new $750.0 million credit facility and issuance of approximately $8.0 million of Operating Partnership Units valued at $27.00 per share.

LaSalle Hotel Properties is a leading multi-operator real estate investment trust owning 36 upscale full-service hotels, totaling approximately 8,900 guest rooms in 13 markets in 9 states and the District of Columbia. The Company focuses on owning, redeveloping and repositioning upscale 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, Hilton Hotels Corporation, Outrigger Lodging Services, Noble House Hotels & Resorts, Hyatt Hotels Corporation, Benchmark Hospitality, White Lodging Services Corporation, Thompson Hotels, Sandcastle Resorts & Hotels, Davidson Hotel Company, Denihan Hospitality Group, the Kimpton Hotel & Restaurant Group, LLC, Accor, Destination Hotels & Resorts, HEI Hotels & Resorts, JRK Hotel Group, Inc and Viceroy Hotel Group.