Are Hotel Strikes Smart for Pebblebrook Right Now, UNITE HERE Asks?

UNITE HERE, the hospitality union, has released a report asking whether strikes at Marriott hotels owned by Pebblebrook Hotel Trust [NYSE: PEB] and LaSalle Hotel Properties [NYSE: LHO] are smart for the REITs right now.

Pebblebrook has spent a year and considerable financial resources pursuing a merger with LaSalle, which is on the cusp of being voted on and consummated. But both have high performing properties subject to rare hotel worker strikes at a critical time for the merger.

Moreover, if Pebblebrook is planning to sell large union properties to finance the merger, as is reported, why is it willing to bear a disproportionate share of the current Marriott strikes?

The report raises the following issues and can be found here https://unitehere.org/wp-content/uploads/Pebblebrook-Shareholder-Update.pdf:

• LaSalle and Pebblebrook have 9% and 10% of EBITDA respectively in hotels that are on strike
• Is selling the Westin Copley Place during a strike optimal?
• Why is Pebblebrook bearing the brunt of strikes if it is selling its largest union properties?
• Does Pebblebrook need additional risks to the LaSalle deal in the closing days?

For more information, please contact Jeff Nelson, jnelson@unitehere.org, 617-480-2585 or Courtney Alexander, calexander@unitehere.org, 631-834-4681.

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