BETHESDA, Md., Nov. 15 /PRNewswire/ -- LaSalle Hotel Properties
(NYSE: LHO) today announced its Board of Trustees has voted to become a
self-managed Real Estate Investment Trust (REIT), beginning January 1, 2001.
This decision was reached together with the full support of the executive
management team and Jones Lang LaSalle Incorporated (NYSE: JLL), the current
advisor. The entire management team will continue to manage LaSalle Hotel
Properties under this new self-managed structure.
In conjunction with this change, Stuart Scott, Chairman of the Board of
Trustees for LaSalle Hotel Properties and Chairman and Chief Executive Officer
of Jones Lang LaSalle, will step down as Chairman for LaSalle Hotel Properties
effective January 1, 2001. Jon Bortz, President and Chief Executive Officer
of LaSalle Hotel Properties and a current Trustee, will assume the Board
Chairman position at that time. All Trustees, including Mr. Scott, will
continue to serve for their elected terms.
It is anticipated the change to the self-managed structure will be
earnings neutral for LaSalle Hotel Properties in 2001 and positive in
succeeding years.
We elected to become self-managed so our shareholders can realize
additional long-term benefits now that the Company has established a solid
reputation in the marketplace and the necessary infrastructure is in place,
said Don Washburn, Trustee and Chairman of the Compensation, Contract and
Governance Committee for LaSalle Hotel Properties. We appreciate the support
and expertise that Jones Lang LaSalle has provided as our advisor since the
Company went public in 1998. In addition, we are very pleased that the entire
management team and staff will continue in their same positions under the new
structure.
LaSalle Hotel Properties was created in 1998 from a combination of various
partnerships in which Jones Lang LaSalle and certain of its investment
management clients held interests. The Company was formed to continue and
expand the hotel investment activities of Jones Lang LaSalle. Since its
initial public offering, LaSalle Hotel Properties has served as the exclusive
vehicle for Jones Lang LaSalle's hotel investment activities in the United
States with Jones Lang LaSalle providing external advisory services to the
Company.
We committed to the shareholders of LaSalle Hotel Properties that we
would assist in an orderly transition when it became apparent that their
interests would be best served by changing to a self-managed structure, said
Mr. Scott, Chairman and Chief Executive Officer of Jones Lang LaSalle.
LaSalle Hotel Properties has reached that critical point. We continue to
believe that the external advisory structure is extremely beneficial in the
early stages of a new company's development, but with its current
infrastructure, this Company can now continue to prosper without ongoing
assistance from an external advisor.
The Company headquarters will continue to be in Bethesda, Md. All
employees who currently work for LaSalle Hotel Advisors, the Jones Lang
LaSalle entity that serves as the external advisor, will become employees of
LaSalle Hotel Properties, effective January 1, 2001. The Company will pay
$600,000 for transition services including assistance in the development of
human resources and information technology systems, transferring of accounting
systems, waiving the renewal notice, and providing support and advice through
the first quarter of 2001. Additionally, LaSalle Hotel Properties will
purchase their current office furniture, fixtures, equipment and leasehold
improvements at book value.
Our executive management team is very excited about this opportunity and
the long-term prospects for LaSalle Hotel Properties to continue to be a
leader in the hotel REIT sector, said Mr. Bortz. In our view, this is the
next logical step for our Company. Thanks to the help and support of Jones
Lang LaSalle, we have developed the expertise and systems to continue to be
successful as a self-managed company. In the future, we look forward to
working with Jones Lang LaSalle when opportunities present themselves.
LaSalle Hotel Properties is a leading multi-tenant, multi-operator real
estate investment trust which owns 13 upscale and luxury full-service hotels,
totaling approximately 5,300 guest rooms in 13 markets in 11 states. LaSalle
Hotel Properties is focused on investing in upscale and luxury full-service
hotels located in urban, resort and convention markets. The Company seeks to
grow through strategic relationships with premier internationally recognized
hotel operating companies including Le Meridien Hotels & Resorts, Marriott
International, Inc., Radisson Hotels International, Inc., Crestline Hotels and
Resorts, Inc., Outrigger Lodging Services, Noble House Hotels & Resorts and
Hyatt Hotels Corporation.
Jones Lang LaSalle is the world's leading real estate services and
investment management firm with more than $21.5 billion of assets under
management and operating across more than 100 key markets on five continents.
Statements in this press release regarding, among other things, future
financial results and performance, achievements, plans and objectives may be
considered forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Such statements involve known and
unknown risks, uncertainties and other factors which may cause actual results,
performance, achievements, plans and objectives of the Company to be
materially different from those expressed or implied by such forward-looking
statements. Factors that could cause actual results to differ materially
include those discussed under Business, Management's Discussion and
Analysis of Financial Condition and Results of Operations, Quantitative and
Qualitative Disclosure About Market Risk and elsewhere in the Company's
annual report on Form 10-K for the year ended December 31, 1999, under
Management's Discussion and Analysis of Financial Condition and Results of
Operations, Quantitative and Qualitative Disclosure About Market Risk, and
elsewhere in the Company's quarterly report(s) on Form 10-Q for the quarters
ended March 31, 2000, June 30, 2000, and September 30, 2000, under Certain
Relationships and Related Transactions in the Company's proxy statement with
respect to the annual meeting of shareholders on May 17, 2000, under Risk
Factors and elsewhere in the Company's Registration Statement (333-77371) and
in other periodic reports filed with the Securities and Exchange Commission.
Statements speak only as of the date of this release. The Company expressly
disclaims any obligation or undertaking to update or revise any
forward-looking statements contained herein to reflect any change in Company
expectations or results, or any change in events.
For additional information, please visit LHO's web site at
www.lasallehotels.com .
For additional information, please visit Jones Lang LaSalle's web site at
www.joneslanglasalle.com .
SOURCE LaSalle Hotel Properties
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