LaSalle Hotel Properties (NYSE:LHO) shares were soaring Monday as the company has agreed to be acquired by private equity firm Blackstone Group LP (NYSE:BX).

The merger will cost the New York investment group about $4.8 billion, giving it a larger share of the hotel market as the Bethesda-based company owns dozens of upscale hotels. The deal tops Pebblebrook Hotel Trust’s (NYSE:PEB) attempt at buying LaSalle Hotel Properties as the real estate investment trust attempted to buy the company for $3.7 billion.

The announcement arrived only three days after Blackstone had said that it would sell the last of its Hilton Worldwide Holdings shares, which are worth about $1.3 billion. Blackstone has been a Hilton investor for 11 years. This move is considered to be the most successful private equity deal on record, according to a Bloomberg News report.

“We are pleased to have reached this agreement with Blackstone, which we believe is in the best interests of our shareholders and represents the culmination of a thorough review of strategic alternatives,” said Stuart L. Scott, Chairman of the Board of LaSalle.

LaSalle’s board and its advisers said it had contacted 20 potential buyers. The Blackstone deal is slated to close in the third quarter, although it would still need to be approved by LaSalle shareholders.

LHO stock surged 5.6%  Monday, while BX stock gained 1.8%.