U.S. Pebblebrook to sell $1 bln in assets after LaSalle Hotel buyout

U.S. hotel investment trust Pebblebrook Hotel Trust plans to sell as much as $1 billion in assets after it completes its acquisition of peer LaSalle Hotel Properties, as the combined company seeks to reduce debt through opportunistic sales.

Pebblebrook Hotel, which agreed to acquire LaSalle Hotel Properties, is already under contract to sell three LaSalle properties for $715 million when the merger closes.

The properties considered for sale are the Park Central San Francisco and two Manhattan hotels considered sister properties, the Park Central New York and the WestHouse hotel.

The acquisition of LaSalle Hotel Properties is expected to close by early December and will create the largest owner of independent lodging properties just as a strong U.S. economy is encouraging businesses and consumers to increase spending on travel.