Exhibit 10(III)



 Exhibit 10(iii) 
  
 ENVIRONMENTAL INDEMNIFICATION AGREEMENT 
  
 This Environmental Indemnification Agreement (this “Agreement”)
is made and entered into effective for all purposes as of the 20th day of November, 2003, by the parties signatory hereto or to an Accession Agreement (as hereinafter defined) (collectively, the “Indemnitor” whether one or
more), to and for the benefit of BANK OF MONTREAL, CHICAGO BRANCH as Administrative Agent (the “Administration Agent”), FLEET
NATIONAL BANK, as Syndication Agent (the “Syndication Agent”), HARRIS NESBITT CORP., as Co-Arranger and Co-Book Manager (the “First Arranger”),
FLEET SECURITIES, INC., as Co-Arranger and Co-Book Manager (the “Second Arranger”), and the banks and other lenders named in the Credit Agreement herein described (the
“Banks”). 
  
 INTRODUCTION

  
 WHEREAS, this Agreement is given in
connection with that Senior Unsecured Credit Agreement dated as of November 20, 2003 (“Credit Agreement”), among LASALLE HOTEL OPERATING PARTNERSHIP, L.P., a
Delaware limited partnership (the “BORROWER”), Administrative Agent, Syndication Agent, First Arranger, Second Arranger and the banks and other lenders party thereto (collectively the “Banks”) pursuant to
which the Banks are making, subject to future advances, loans (and issuing letters of credit) in an amount up to $215,000,000, which amount may be increased under certain conditions to $300,000,000 (collectively, the “Loans’”)
to Borrower as more specifically described therein; 
  
 WHEREAS, the Borrower and Subsidiaries of the Borrower now or hereafter will own certain Hotel Properties which include without limitation the Initial Properties, the Future Properties, the Permitted Non-Eligible Properties
and the properties owned by the Permitted Other Subsidiaries (said properties together with all property owned by the Participating Lessees in connection with such Hotel Properties, all rights and appurtenances to such Hotel Properties and all
improvements presently located or hereafter constructed on such Hotel Properties are hereinafter collectively called the “Properties”, and each a “Property”); 
  
 WHEREAS, the Borrower is the principal financing entity for
capital requirements of its Subsidiaries, and from time to time the Borrower has made and will continue to make capital contributions and advances to its Subsidiaries, including the Subsidiaries which are parties hereto. Other than the Parent, each
Indemnitor is a direct or indirect subsidiary of the Borrower. Each Indemnitor will derive substantial direct and indirect benefit from the transactions contemplated by the Credit Agreement; and 
  
 WHEREAS, the Banks have required the execution and delivery of
this Agreement as a condition precedent to the execution of the Credit Agreement. The Banks would not be willing to execute the Credit Agreement in the absence of the execution and delivery by Indemnitor of this Agreement. 
  









 IN WITNESS WHEREOF, Indemnitor has caused this Agreement to
be executed as of the day and year first written above. 
  

	INDEMNITORS:
	
	 LASALLE HOTEL OPERATING PARTNERSHIP,
L.P.,
     a Delaware limited partnership

		
	By:	 	 LASALLE HOTEL PROPERTIES, a
Maryland
 real estate investment trust, its general partner

		
	By:	 	  


	 Name: Hans Weger
 Title: Chief Financial Officer




		
	 Address:
	 	 4800 Montgomery Lane, Suite M25
 Bethesda, Maryland 20814
 Attn: Mr. Hans S. Weger



  
 Signature Page
of Environmental Indemnification Agreement 
  










	 LASALLE HOTEL PROPERTIES, a Maryland real
     estate investment trust

		
	By:	 	  


	 Name: Hans Weger
 Title: Chief Financial Officer




		
	 Address:
	 	 4800 Montgomery Lane, Suite M25
 Bethesda, Maryland 20814
 Attn: Mr. Hans S. Weger



  
 Signature Page
of Environmental Indemnification Agreement 
  










	 I & G CAPITOL, LLC
 LHO WASHINGTON HOTEL ONE, L.L.C.
 LHO WASHINGTON HOTEL TWO, L.L.C.
 LHO WASHINGTON HOTEL THREE, L.L.C.
 LHO WASHINGTON HOTEL FOUR, L.L.C.
 LHO WASHINGTON FIVE LESSEE, L.L.C.
 LHO VIKING HOTEL, L.L.C.
 LHO WASHINGTON HOTEL SIX, L.L.C.

		
	By:	 	 LaSalle Hotel Operating Partnership, L.P.
 a Delaware limited partnership, its
 managing member

			
	 	 	 By:
	 	 LaSalle Hotel Properties,
 its general partner

				
	 	 	 	 	 By:
	 	  


	 	 	 	 	 Name: Hans Weger
 Title: Chief
Financial Officer




		
	 Address:
	 	 4800 Montgomery Lane, Suite M25
 Bethesda, Maryland 20814
 Attn: Mr. Hans S. Weger



  
 Signature Page
of Environmental Indemnification Agreement 
  










	 LASALLE HOTEL LESSEE,
Inc.
 LASALLE WASHINGTON ONE LESSEE,
Inc.
 LASALLE WASHINGTON TWO LESSEE,
Inc.
 LASALLE WASHINGTON THREE LESSEE,
Inc.
 LASALLE WASHINGTON FOUR LESSEE,
Inc.
 LHO WASHINGTON SIX LESSEE, Inc.




		
	 By:
	 	  


	 Name: Hans Weger
 Title: Chief
Financial Officer




		
	 Address:
	 	 4800 Montgomery Lane, Suite M25
 Bethesda, Maryland 20814
 Attn: Mr. Hans S. Weger



  
 Signature Page
of Environmental Indemnification Agreement