Blackstone to buy LaSalle Hotel for $3.7B

FILE PHOTO: The ticker and trading information for Blackstone Group is displayed at the post where it is traded on the floor of the New York Stock Exchange (NYSE), New York, NY, U.S., April 4, 2016. REUTERS/Brendan McDermid/File Photo (Reuters)

(Reuters) - Private equity firm Blackstone Group LP said on Monday it would buy U.S. hotel owner LaSalle Hotel Properties for $3.7 billion, topping a rival bid from Pebblebrook Hotel Trust for $3.5 billion.

The deal values LaSalle at $33.50 per share compared with Pebblebrook's offer price of $31.75 per share and represents a premium of 5 percent to LaSalle's closing price on Friday.

(Reporting by Sanjana Shivdas in Bengaluru; Editing by Arun Koyyur)