NEW YORK, June 8, 1998 - LaSalle Hotel Properties (NYSE: LHO), a leading multi-tenant, multi-operator hotel real estate investment trust that completed its initial public offering on April 23, 1998, today reported an increase in pro forma funds from operations and net income for its first quarter of 1998 over the first quarter of 1997.
For the first quarter ended March 31, 1998, pro forma Funds From Operations (FFO) was $9.0 million, or $0.49 per share/unit, a 17.2 percent increase from $7.7 million, or $0.42 per share/unit, for the same period in 1997. Pro forma participating lease revenues for the first quarter of 1998 increased 13.8 percent to $12.5 million over the first quarter of 1997. Pro forma net income for the 1998 first quarter was $4.2 million, or $0.28 per share (basic and diluted), for a 35.3 percent increase from pro forma net income of $3.1 million, or $0.20 per share (basic and diluted), for the same period in 1997.
Since the company had no significant operations until after the initial
public offering, pro forma operating results are being presented as if
the Company had completed its initial public offering, acquired its interest
in its ten initial upscale and luxury full service hotels, and leased these
hotels under participating leases as of January 1, 1997. The pro forma
results are based upon available information and certain assumptions that
management of the Company believes are reasonable. The pro forma results
are not necessarily indicative of what the actual results of operations
would have been for each of the three month periods ended March 31, 1998,
and 1997, had the
Company completed the initial public offering and acquired the initial ten upscale and luxury hotels for the dates indicated nor does it purport to represent the future results of operations of the Company.
Occupancy for the ten hotels was 72.2 percent for the 1998 first quarter, a 2.6 percent increase from occupancy of 70.4 percent in the same period in 1997. The average daily rate increased 6.7 percent to $120.62 from $113.02. RevPAR, or room revenue per available room, increased to $87.04, or 9.4 percent over the same period in 1997. This significant RevPAR percentage increase was led by three properties: the Le Meridien Dallas Hotel, the Le Meridien New Orleans Hotel, and the Marriott Seaview Resort, which increased 18.9 percent, 13.2 percent and 17.3 percent respectively.
"Our pro forma results highlight the competitive strengths of our assets and the favorable operating fundamentals of major business, resort and convention markets in which they are located," said Jon E. Bortz, President and Chief Executive Officer of LaSalle Hotel Properties. "Other major contributing factors are the significant investments that we were making at several properties and the management expertise of the five premier hotel companies operating our hotels."
Since completion of the initial public offering, the Company has acquired the 44-acre San Diego Princess Resort, which it acquired on June 1 for $73 million. Renamed the San Diego Paradise Point Resort, this unique, irreplaceable property has 462 guest rooms in 129 unique single-story villas and nearly one mile of beachfront. The acquisition was made to take advantage of the upside opportunity at the property, the strength of the San Diego resort market and the high barriers to entry for new hotels.
LaSalle Hotel Properties is a leading multi-tenant, multi-operator real estate investment trust which owns 11 upscale and luxury full-service hotels, totaling 3,841 guest rooms in eight states. The company seeks to grow through strategic relationships with premier internationally recognized hotel operating companies including Le Meridien Hotels Resorts, Marriott International, Inc., Radisson Hotels International, Inc., Durbin Companies, Outrigger Lodging Services and Noble House Hotels Resorts.
LaSalle Hotel Properties is focused on acquiring upscale and luxury full- service hotels located primarily in major business and urban, resort and convention markets. The REIT serves as the exclusive vehicle for LaSalle Partners' hotel investment activities in the United States. Founded in 1968, LaSalle Partners Incorporated (NYSE: LAP) is a leading vertically integrated global real estate services firm providing management services, corporate and financial services, and investment management services for public and private institutions and other real estate owners and investors worldwide.
Statements in this press release regarding, among other things, future
financial results and performance, achievements, plans and objectives may
be considered forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Such statements involve known
and unknown risks, uncertainties and other factors which may cause actual
results, performance, achievements, plans and objectives of the Company
to be materially different from those expressed or implied by such forward-looking
statements. Factors that could cause actual results to differ materially
include those discussed under "Risk Factors" and
elsewhere in the Company's prospectus filed as part of its registration statement (333-45647) and in other periodic reports filed with the Securities and Exchange Commission. Statements speak only as of the date of this release. The Company expressly disclaims any obligation or undertaking to update or revise any forward- looking statements contained herein to reflect any change in Company expectations or results, or any change in events.
|SOURCE LaSalle Hotel Properties|