UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
SCHEDULE 13D
(Rule 13d-101)
INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT TO
RULE 13d-1(a), AND AMENDMENTS THERETO
FILED PURSUANT TO RULE 13d-2(a)
(Amendment No. ______)
LaSalle Hotel Properties
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(Name of Issuer)
Common Shares of Beneficial Interest, $.01 par value
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(Title of Class of Securities)
517942108
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(CUSIP Number)
William E. Sullivan
Chief Financial Officer
LaSalle Partners Incorporated
200 East Randolph Drive
Chicago, Illinois 60601
312-782-5800
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(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
February 28, 1999
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(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to
report the acquisition that is the subject of this Schedule 13D, and is
filing this schedule because of Rule 13d-1(e), 13d-1(f) or 13d-1(g), check
the following box [ ]
<PAGE>
CUSIP NO. 517942108 13D
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1. NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
LaSalle Partners Incorporated
- ---------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [ ]
(b) [ ]
- ---------------------------------------------------------------------------
3. SEC USE ONLY
- ---------------------------------------------------------------------------
4. SOURCE OF FUNDS*
00
- ---------------------------------------------------------------------------
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEM 2(d) OR 2(e) [ ]
- ---------------------------------------------------------------------------
6. CITIZENSHIP OR PLACE OR ORGANIZATION
Maryland
- ---------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES 2,054,511 (includes Operating Partnership Units
convertible into 930,805 Common Shares and
Options to purchase 273,596 Common Shares)
- ---------------------------------------------------------------------------
BENEFICIALLY 8 SHARES VOTING POWER
OWNED BY 0
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EACH 9 SOLE DISPOSITIVE POWER
REPORTING 2,054,511 (includes Operating Partnership Units
convertible into 930,805 Common Shares and
Options to purchase 273,596 Common Shares)
- ---------------------------------------------------------------------------
PERSON 10 SHARED DISPOSITIVE POWER
WITH 0
- ---------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,054,511 (includes Operating Partnership Units
convertible into 930,805 Common Shares and Options
to purchase 273,596 Common Shares)
- ---------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* [ ]
Not Applicable
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
11.0%
- ---------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
CO
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<PAGE>
CUSIP NO. 517942108 13D
- ---------------------------------------------------------------------------
1. NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
LaSalle Hotel Advisors, Inc.
- ---------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [ ]
(b) [ ]
- ---------------------------------------------------------------------------
3. SEC USE ONLY
- ---------------------------------------------------------------------------
4. SOURCE OF FUNDS*
00
- ---------------------------------------------------------------------------
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEM 2(d) OR 2(e) [ ]
- ---------------------------------------------------------------------------
6. CITIZENSHIP OR PLACE OR ORGANIZATION
Maryland
- ---------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES 273,596 (consists of Options to purchase
273,596 Common Shares)
- ---------------------------------------------------------------------------
BENEFICIALLY 8 SHARES VOTING POWER
OWNED BY 0
- ---------------------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING 273,596 (consists of Options to purchase
273,596 Common Shares)
- ---------------------------------------------------------------------------
PERSON 10 SHARED DISPOSITIVE POWER
WITH 0
- ---------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
273,596 (consists of Options to purchase 273,596 Common Shares)
- ---------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* [ ]
Not Applicable
- ---------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
1.5%
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14 TYPE OF REPORTING PERSON*
CO
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<PAGE>
CUSIP NO. 517942108 13D
- ---------------------------------------------------------------------------
1. NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
LaSalle Partners Co-Investment, Inc.
- ---------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [ ]
(b) [ ]
- ---------------------------------------------------------------------------
3. SEC USE ONLY
- ---------------------------------------------------------------------------
4. SOURCE OF FUNDS*
00
- ---------------------------------------------------------------------------
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEM 2(d) OR 2(e) [ ]
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6. CITIZENSHIP OR PLACE OR ORGANIZATION
Maryland
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NUMBER OF 7 SOLE VOTING POWER
SHARES 1,769,927 (includes Operating Partnership
Units convertible into 930,805 Common Shares)
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BENEFICIALLY 8 SHARES VOTING POWER
OWNED BY 0
- ---------------------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING 1,769,927 (includes Operating Partnership
Units convertible into 930,805 Common Shares)
- ---------------------------------------------------------------------------
PERSON 10 SHARED DISPOSITIVE POWER
WITH 0
- ---------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,769,927 (includes Operating Partnership Units convertible
into 930,805 Common Shares)
- ---------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* [ ]
Not Applicable
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
9.6%
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14 TYPE OF REPORTING PERSON*
CO
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<PAGE>
CUSIP NO. 517942108 13D
- ---------------------------------------------------------------------------
1. NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
LaSalle Hotel Co-Investment, Inc.
- ---------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [ ]
(b) [ ]
- ---------------------------------------------------------------------------
3. SEC USE ONLY
- ---------------------------------------------------------------------------
4. SOURCE OF FUNDS*
00
- ---------------------------------------------------------------------------
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEM 2(d) OR 2(e) [ ]
- ---------------------------------------------------------------------------
6. CITIZENSHIP OR PLACE OR ORGANIZATION
Illinois
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NUMBER OF 7 SOLE VOTING POWER
SHARES 1,112,347 (includes Operating Partnership
Units Convertible into 262,237 Common Shares)
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BENEFICIALLY 8 SHARES VOTING POWER
OWNED BY 0
- ---------------------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING 1,112,347 (includes Operating Partnership
Units Convertible into 262,237 Common Shares)
- ---------------------------------------------------------------------------
PERSON 10 SHARED DISPOSITIVE POWER
WITH 0
- ---------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,112,347 (includes Operating Partnership Units convertible
into 262,237 Common Shares)
- ---------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES* [ ]
Not Applicable
- ---------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
6.0%
- ---------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
CO
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<PAGE>
ITEM 1. SECURITY AND ISSUER
The class of equity securities to which this statement on Schedule 13D
relates is the Common Shares of Beneficial Interest, $.01 par value per
share ("Common Shares"), of LaSalle Hotel Properties (the "Issuer"), a
Maryland real estate investment trust, with principal offices located at
1401 Eye Street, NW, Suite 900, Washington, DC 20005.
ITEM 2. IDENTITY AND BACKGROUND
This statement is being filed by LaSalle Partners Incorporated and
three of its wholly owned subsidiaries, LaSalle Hotel Co-Investment, Inc.
("LaSalle Hotel Co-Investment"), LaSalle Partners Co-Investment, Inc.
("LaSalle Partners Co-Investment"), and LaSalle Hotel Advisors, Inc.
("Advisors").
LaSalle Partners is a Maryland corporation principally engaged in
providing real estate services and investment management. LaSalle Hotel
Co-Investment is an Illinois corporation principally engaged in the
business of investing in the Issuer. LaSalle Partners Co-Investment is a
Maryland corporation principally engaged in the business of investing in
real estate and real estate related investments. Advisors is a Maryland
corporation principally engaged in the provision of acquisition,
management, advisory and administrative services to the Issuer.
The principal business and office address of Advisors is: 1401 Eye
Street, NW, Suite 900, Washington, DC 20005; the principal business and
office addresses of LaSalle Partners, LaSalle Partners Co-Investment and
LaSalle Hotel Co-Investment are: 200 East Randolph Drive, Chicago, IL
60601.
Information regarding the Directors and Executive Officers of LaSalle
Partners is incorporated by reference to the reports and other documents
filed by LaSalle Partners with the Securities and Exchange Commission.
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION
In connection with its formation, the Issuer acquired interests in
certain hotel properties from affiliates of LaSalle Partners. In
connection with this, certain subsidiaries of, and other entities
controlled by, LaSalle Partners received 930,805 Units of LaSalle Hotel
Operating Partnerships, L.P., a Delaware limited partnership ("Operating
Partnership Units"), 912,122 Common Shares and Options to purchase 457,346
Common Shares ("Options") in consideration for interests in the properties
and in satisfaction of certain incentive fees. LaSalle Partners
distributed some of the Common Shares and Options to Employees. See
Item 6.
Pursuant to an advisory agreement (the "Advisory Agreement") between
the Issuer and Advisors, Advisors provides acquisition, management,
advisory and administrative services to the Issuer. For its services under
the Advisory Agreement, Advisors receives an annual base fee (the "Base
Fee") and an incentive fee (the "Incentive Fee"). The Base Fee is payable
quarterly in arrears in cash, and the Incentive Fee, if any, is payable
annually in arrears in cash or Common Shares, based upon certain increases
in the Issuer's funds from operations per share ("FFO"). For the year
ended December 31, 1998, Advisors received 10,988 Common Shares pursuant to
the Advisory Agreement as the Incentive Fee, representing an aggregate
dollar value of $155,041 at the time of determination or $14.11 per Common
Share.
<PAGE>
ITEM 4. PURPOSE OF TRANSACTION
Each of the Reporting Persons has purchased and holds the Common
Shares reported by it for investment purposes.
As indicated in Items 2 and 3 above, Advisors is engaged in the
business of providing acquisition, management, advisory and administrative
services to the Issuer pursuant to the Advisory Agreement. Pursuant to the
Advisory Agreement, upon achieving certain pre-determined increases in FFO
per share, Advisors will receive an Incentive Fee which may be paid in
additional Common Shares of the Issuer. In addition to compensating
Advisors for past performance, the Incentive Fee is intended to align the
interests of the Issuer and Advisors. The current term of the Advisory
Agreement extends through December 31, 1999 and is subject to successive,
automatic one year renewals unless terminated according to the terms of the
Advisory Agreement.
In performing its duties under the Advisory Agreement, Advisors
analyzes the operations, capital structure and markets of the Issuer on a
continuous basis. As a result of these analytical activities, Advisors may
suggest with respect to potential changes in the operations, management or
capital structure of the Issuer as a means of enhancing shareholder value.
Such suggestions may relate to one or more of the matters specified in
clauses (a) through (j) of Item 4 of the Schedule 13D form, including,
without limitation, such matters as disposing of one or more assets,
changing operating or marketing strategies and restructuring the company's
capitalization.
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER
(a) The aggregate number and percentage of Common Shares (including
those which may be issued pursuant to Options and Units) to which this
Schedule 13D relates is 2,054,511, representing 11.0% of the
Common Shares outstanding as determined pursuant to the regulations
promulgated under Section 13 of the Securities Exchange Act of 1934, as
amended. The Reporting Persons beneficially own those Common Shares as
follows:
AGGREGATE NUMBER OF
COMMON SHARES, % OF COMMON
NAME OPTIONS AND UNITS SHARES
---- ------------------- -----------
LaSalle Partners 2,054,511 11.0%
Advisors 273,596 1.5%
LaSalle Partners Co-Investment1,780,915 9.7%
LaSalle Hotel Co-Investment 1,112,347 6.0%
(b) Each of the Reporting Persons has the sole power to vote or
direct the vote and sole power to dispose or to direct the disposition of
the Common Shares reported for it. Advisors, LaSalle Partners Co-
Investment and LaSalle Hotel Co-Investment are wholly owned subsidiaries of
LaSalle Partners, and certain Operating Partnership Units are held by
entities controlled by LaSalle Partners.
(c) Refer to Item 3.
(d) Not applicable.
(e) Not applicable.
<PAGE>
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH
RESPECT TO SECURITIES OF THE ISSUER
Pursuant to separate Equity Compensation Agreements among each of five
employees (collectively the "Employees") and LaSalle Partners, LaSalle
Hotel Co-Investment and Advisors, LaSalle Hotel Co-Investment has granted
an aggregate of 73,000 Common Shares to the Employees and Advisors has
granted an aggregate of 183,750 Options to the Employees. In certain
circumstances the Common Shares, or a portion thereof, may be forfeited and
assigned to LaSalle Hotel Co-Investment or any other person which LaSalle
Partners may designate. Similarly in certain circumstances, the Options,
or a portion thereof, may be forfeited and assigned to Advisors or any
other person which LaSalle Partners may designate.
ITEM 7. MATERIALS TO BE FILED AS EXHIBITS
Exhibit A to this Schedule 13D is attached hereto. Exhibit B is
incorporated herein by reference to Exhibit 10.13 in the Pre Effective
Amendment No. 1 to the Issuers Registration Statement on Form S-11.
Exhibit A: Joint Filing Agreement
Exhibit B: Form of Advisory Agreement
<PAGE>
SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete
and correct.
Date: March 10, 1999
LASALLE PARTNERS HOTEL CO- LASALLE PARTNERS CO-
INVESTMENT, INC. INVESTMENT, INC.
By: /s/ ROBERT K. HAGAN By: /s/ ROBERT K. HAGAN
----------------------- ----------------------
Name: Robert K. Hagan Name: Robert K. Hagan
Title: Vice President Title: Vice President
LASALLE HOTEL ADVISORS, INC. LASALLE PARTNERS INCORPORATED
By: /s/ ROBERT K. HAGAN By: /s/ ROBERT K. HAGAN
----------------------- ----------------------
Name: Robert K. Hagan Name: Robert K. Hagan
Title: Vice President Title: Vice President
<PAGE>
EXHIBIT A
---------
JOINT FILING AGREEMENT
----------------------
In accordance with Rule 13d-1(k) under the Securities Exchange Act of
1934, as amended, the undersigned hereby agree to the joint filing with all
other Reporting Persons (as such term is defined in the Schedule 13D
referred to below) on behalf of each of them of a statement on Schedule 13D
(including amendments thereto) with respect to the Common Shares of
Beneficial Interest, $.01 par value per share ("Common Shares"), of LaSalle
Hotel Properties and that this Agreement be included as an Exhibit to such
joint filing. This Agreement may be executed in any number of counterparts
all of which taken together shall constitute one and the same instrument.
IN WITNESS WHEREOF, the undersigned hereby execute this Agreement this
10th day of March, 1999.
LASALLE PARTNERS HOTEL CO- LASALLE PARTNERS CO-
INVESTMENT, INC. INVESTMENT, INC.
By: /s/ ROBERT K. HAGAN By: /s/ ROBERT K. HAGAN
----------------------- ----------------------
Name: Robert K. Hagan Name: Robert K. Hagan
Title: Vice President Title: Vice President
LASALLE HOTEL ADVISORS, INC. LASALLE PARTNERS INCORPORATED
By: /s/ ROBERT K. HAGAN By: /s/ ROBERT K. HAGAN
----------------------- ----------------------
Name: Robert K. Hagan Name: Robert K. Hagan
Title: Vice President Title: Vice President
