On January 10, 2017, LaSalle Hotel Properties, a Maryland
corporation (the “Company”), through the Company’s operating
partnership, LaSalle Hotel Operating Partnership, L.P., a Delaware
limited partnership (the “Operating Partnership”), entered into a
Second Amended Restated Senior Unsecured Credit Agreement, dated as
of January 10, 2017 (the “Credit Agreement”), with Citibank,
N.A., as Administrative Agent, and the other lenders named therein.
The Credit Agreement provides for a senior unsecured credit
facility of up to $750 million, with a sublimit of $100 million for
letters of credit (the “Credit Facility”), and an unsecured term
loan of $300 million (the “First Term Loan”). The Credit Facility
and First Term Loan replace the Company’s prior $750 million
senior unsecured credit facility and $300 million unsecured term
loan, respectively.

Unless otherwise terminated to the terms of the Credit Agreement,
the Credit Facility matures on January 8, 2021, subject to two
six-month extension options to January 8, 2022 that the Company may
exercise to certain terms and conditions, including payment of an
extension fee, and the First Term Loan matures on January 10, 2022.
The Credit Agreement includes accordion features that allow the
Company to request additional lender commitments, allowing for
total commitments of up to $1.25 billion under the Credit Facility
and up to $500 million under the First Term Loan, subject to
certain terms and conditions. Borrowings under the Credit Facility
and the First Term Loan bear interest at floating rates equal to,
at the Company’s option, either (i) LIBOR plus an applicable
margin, or (ii) an Adjusted Base Rate (as defined in the Credit
Agreement) plus an applicable margin. Depending on the Company’s
leverage ratio (as defined in the Credit Agreement), the Credit
Facility spread ranges from 1.50% to 2.25% for LIBOR borrowings and
from 0.50% to 1.25% for Base Rate borrowings and the First Term
Loan spread ranges from 1.45% to 2.20% for LIBOR borrowings and
from 0.45% to 1.20% for Base Rate borrowings. Additionally, the
Company is required to pay a variable unused commitment fee of
0.20% or 0.30% of the unused portion of the Credit Facility,
depending on the average daily unused portion of the Credit
Facility. There were no borrowings outstanding on the Credit
Facility at January 10, 2017. The First Term Loan was hedged to a
fixed interest rate based on the Company’s current leverage ratio
(as defined in the swap agreements), which interest rate was 2.23%
at January 10, 2017, through August 2, 2017.

In addition, on January 10, 2017, the Company, through the
Operating Partnership, entered into an Amended Restated Senior
Unsecured Term Loan Agreement, dated as of January 10, 2017 (the
“Term Loan Agreement”), with Citibank, N.A., as Administrative
Agent, and the other lenders named therein. The Term Loan Agreement
provides for an unsecured term loan of $555 million (the “Second
Term Loan”). The Second Term Loan replaces the Company’s prior
$555 million unsecured term loan.

Unless otherwise terminated to the terms of the Term Loan
Agreement, the Second Term Loan will mature on January 29, 2021.
The Term Loan Agreement includes an accordion feature that allows
the Company to request additional lender commitments, allowing for
total commitments of up to $700 million under the Second Term Loan,
subject to certain terms and conditions. Borrowings under the
Second Term Loan bear interest at floating rates equal to, at the
Company’s option, either (i) LIBOR plus an applicable margin, or
(ii) an Adjusted Base Rate (as defined in the Term Loan Agreement)
plus an applicable margin. Depending on the Company’s leverage
ratio (as defined in the Term Loan Agreement), the spread ranges
from 1.45% to 2.20% for LIBOR borrowings and from 0.45% to 1.20%
for Base Rate borrowings. The Second Term Loan was hedged to a
fixed interest rate based on the Company’s current leverage ratio
(as defined in the swap agreements), which interest rate was 2.95%
at January 10, 2017 through May 16, 2019 for $177,500 of the Second
Term Loan and through January 29, 2021 for the remaining $377,500
of the Second Term Loan.

The Company’s ability to borrow under the Credit Facility, the
First Term Loan and the Second Term Loan is subject to its ongoing
compliance with a number of customary financial and other
covenants, including covenants relating to net worth requirements,
debt ratios and fixed charge coverage ratios. In addition, to the
terms of the Credit Agreement and Term Loan Agreement, if a default
or event of default occurs and is continuing, the Company may be
precluded from paying certain distributions (other than those
required to allow it to qualify and maintain its status as a real
estate investment trust).

The Company and certain of its subsidiaries guarantee the
obligations under the Credit Agreement and Term Loan Agreement.
While the Credit Facility, the First Term Loan and the Second Term
Loan do not initially include any pledges of equity interests, such
pledges and additional subsidiary guarantees would be required in
the event that the Company’s leverage ratio later exceeds
6.50:1.00 for two consecutive fiscal quarters. In the event that
such pledge and guarantee requirement is triggered, the pledges and
additional guarantees would ratably benefit the Credit Facility,
the First Term Loan and the Second Term Loan. If at any time the
Company’s leverage ratio falls below 6.50:1.00 for two consecutive
fiscal quarters, such pledges and additional guarantees may be
released.

Additionally, LaSalle Hotel Lessee, Inc., the Companys taxable REIT
subsidiary, refinanced its $25 million unsecured revolving credit
facility with U.S. Bank National Association, with no change in
capacity, on similar terms as the Companys Credit Facility.

The foregoing descriptions of the Credit Facility, the First Term
Loan and the Second Term Loan do not purport to be complete and are
qualified in their entirety by reference to the Credit Agreement
and the Term Loan Agreement, copies of which will be filed with the
Securities and Exchange Commission as exhibits to the Company’s
Annual Report on Form 10-K for the year ended December 31, 2016.

The information set forth in Item 1.01 is incorporated herein by
reference.

Item 7.01 Regulation FD Disclosure

The Company announced that it entered into the Credit Agreement and
the Term Loan Agreement. A copy of the press release is furnished
as Exhibit 99.1 to this report and is incorporated by reference
herein.

Item 9.01. Financial Statements and Exhibits

(d) Exhibits

The information contained in the press release attached as Exhibit
99.1 to this report shall not be deemed filed for the purposes of
Section 18 of the Securities Exchange Act of 1934, as amended, or
otherwise subject to the liabilities of that section. Furthermore,
the information contained in the press release attached as Exhibit
99.1 to this report shall not be deemed to be incorporated by
reference in the filings of the registrant under the Securities Act
of 1933, as amended.