Are Hotel Strikes Smart for Pebblebrook Right Now?

Pebblebrook Hotel Trust has spent a year and considerable financial resources pursuing a merger with LaSalle Hotel Properties, 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?

A new UNITE HERE report raises the following issues:

  • 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?

Read the full report.