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?