UPDATE: Deutsche Bank Raises PT to $25.50 on LaSalle Hotel Properties

Deutsche Bank raises its price target 50 cents to $25.50 on Hold-rated LaSalle Hotel Properties LHO on acquisition and raised guidance. Deutsche Bank says, "LHO announced the acquisition of the Hotel Palomar in Washington D.C. and raised 2012 guidance. LHO is paying for $143.8 mm, or $429,000/key, using its credit line and $46.6 mm of proceeds from the ATM program. At a 6.6% trailing cap rate, we view pricing favorably for a full service hotel in a major gateway market. The inauguration in 2013 should lead to solid top line growth. LHO will also look for cost synergies with its other CBD DC hotels." LHO closed at $27.12 a share on Friday.