EXHIBIT 99.2
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FOR IMMEDIATE RELEASE
Contact: Raymond Martz, Director of Finance/Investor Relations
--Bethesda +301/941-1516
LASALLE HOTEL PROPERTIES TO BECOME
SELF-MANAGED BEGINNING IN 2001
BETHESDA, MD, NOVEMBER 15, 2000 -- LaSalle Hotel Properties
(NYSE: LHO) today announced its Board of Trustees has voted to become a
self-managed Real Estate Investment Trust (REIT), beginning January 1,
2001. This decision was reached together with the full support of the
executive management team and Jones Lang LaSalle Incorporated (NYSE: JLL),
the current advisor. The entire management team will continue to manage
LaSalle Hotel Properties under this new self-managed structure.
In conjunction with this change, Stuart Scott, Chairman of the Board
of Trustees for LaSalle Hotel Properties and Chairman and Chief Executive
Officer of Jones Lang LaSalle, will step down as Chairman for LaSalle Hotel
Properties effective January 1, 2001. Jon Bortz, President and Chief
Executive Officer of LaSalle Hotel Properties and a current Trustee, will
assume the Board Chairman position at that time. All Trustees, including
Mr. Scott, will continue to serve for their elected terms.
It is anticipated the change to the self-managed structure will be
earnings neutral for LaSalle Hotel Properties in 2001 and positive in
succeeding years.
"We elected to become self-managed so our shareholders can realize
additional long-term benefits now that the Company has established a solid
reputation in the marketplace and the necessary infrastructure is in
place," said Don Washburn, Trustee and Chairman of the Compensation,
Contract and Governance Committee for LaSalle Hotel Properties. "We
appreciate the support and expertise that Jones Lang LaSalle has provided
as our advisor since the Company went public in 1998. In addition, we are
very pleased that the entire management team and staff will continue in
their same positions under the new structure."
LaSalle Hotel Properties was created in 1998 from a combination of
various partnerships in which Jones Lang LaSalle and certain of its
investment management clients held interests. The Company was formed to
continue and expand the hotel investment activities of Jones Lang LaSalle.
Since its initial public offering, LaSalle Hotel Properties has served as
the exclusive vehicle for Jones Lang LaSalle's hotel investment activities
in the United States with Jones Lang LaSalle providing external advisory
services to the Company.
"We committed to the shareholders of LaSalle Hotel Properties that we
would assist in an orderly transition when it became apparent that their
interests would be best served by changing to a self-managed structure,"
said Mr. Scott, Chairman and Chief Executive Officer of Jones Lang LaSalle.
"LaSalle Hotel Properties has reached that critical point. We continue to
believe that the external advisory structure is extremely beneficial in the
early stages of a new company's development, but with its current
infrastructure, this Company can now continue to prosper without ongoing
assistance from an external advisor."
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LASALLE HOTEL PROPERTIES TO BECOME SELF-MANAGED BEGINNING IN 2001 - Add one
The Company headquarters will continue to be in Bethesda, MD. All
employees who currently work for LaSalle Hotel Advisors, the Jones Lang
LaSalle entity that serves as the external advisor, will become employees
of LaSalle Hotel Properties, effective January 1, 2001. The Company will
pay $600,000 for transition services including assistance in the
development of human resources and information technology systems,
transferring of accounting systems, waiving the renewal notice, and
providing support and advice through the first quarter of 2001.
Additionally, LaSalle Hotel Properties will purchase their current office
furniture, fixtures, equipment and leasehold improvements at book value.
"Our executive management team is very excited about this opportunity
and the long-term prospects for LaSalle Hotel Properties to continue to be
a leader in the hotel REIT sector," said Mr. Bortz. "In our view, this is
the next logical step for our Company. Thanks to the help and support of
Jones Lang LaSalle, we have developed the expertise and systems to continue
to be successful as a self-managed company. In the future, we look forward
to working with Jones Lang LaSalle when opportunities present themselves."
LaSalle Hotel Properties is a leading multi-tenant, multi-operator
real estate investment trust which owns 13 upscale and luxury full-service
hotels, totaling approximately 5,300 guest rooms in 13 markets in 11
states. LaSalle Hotel Properties is focused on investing in upscale and
luxury full-service hotels located in urban, resort and convention markets.
The Company seeks to grow through strategic relationships with premier
internationally recognized hotel operating companies including Le Meridien
Hotels & Resorts, Marriott International, Inc., Radisson Hotels
International, Inc., Crestline Hotels and Resorts, Inc., Outrigger Lodging
Services, Noble House Hotels & Resorts and Hyatt Hotels Corporation.
Jones Lang LaSalle is the world's leading real estate services and
investment management firm with more than $21.5 billion of assets under
management and operating across more than 100 key markets on five
continents.
Statements in this press release regarding, among other things,
future financial results and performance, achievements, plans and
objectives may be considered forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. Such statements
involve known and unknown risks, uncertainties and other factors which may
cause actual results, performance, achievements, plans and objectives of
the Company to be materially different from those expressed or implied by
such forward-looking statements. Factors that could cause actual results to
differ materially include those discussed under "Business", "Management's
Discussion and Analysis of Financial Condition and Results of Operations",
"Quantitative and Qualitative Disclosure About Market Risk" and elsewhere
in the Company's annual report on Form 10-K for the year ended December 31,
1999, under "Management's Discussion and Analysis of Financial Condition
and Results of Operations", "Quantitative and Qualitative Disclosure About
Market Risk", and elsewhere in the Company's quarterly report(s) on Form
10-Q for the quarters ended March 31, 2000, June 30, 2000, and
September 30, 2000, under "Certain Relationships and Related Transactions"
in the Company's proxy statement with respect to the annual meeting of
shareholders on May 17, 2000, under "Risk Factors" and elsewhere in the
Company's Registration Statement (333-77371) and in other periodic reports
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LASALLE HOTEL PROPERTIES TO BECOME SELF-MANAGED BEGINNING IN 2001 - Add two
filed with the Securities and Exchange Commission. Statements speak only
as of the date of this release. The Company expressly disclaims any
obligation or undertaking to update or revise any forward-looking
statements contained herein to reflect any change in Company expectations
or results, or any change in events.
Contacts:
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Hans Weger, Chief Financial Officer, LaSalle Hotel Properties
--+301/941-1516
Magnes Welsh, Public Relations, Jones Lang LaSalle
--+312/228-2471
For additional information, please visit LHO's web site
www.lasallehotels.com
For additional information, please visit Jones Lang LaSalle's
web site at www.joneslanglasalle.com
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