LaSalle Hotel Properties and LaSalle Investment Management Announce Formation of...

LaSalle Hotel Properties and LaSalle Investment Management Announce Formation of Joint Venture

BETHESDA, Md. & CHICAGO--(Business Wire)--
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 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.

LaSalle Hotel Properties
Hans Weger, Chief Financial Officer
301-941-1500
or
LaSalle Investment Management
Stefanie Murphy, Global Corporate Communications
312-228-2121

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