WASHINGTON, D.C., Oct. 29, 1998 - LaSalle Hotel Properties
(NYSE: LHO) reported an increase in funds from operations (FFO) of 40 percent
to $11.9 million for the third quarter versus $8.5 million for pro forma
third quarter 1997. On a per share/unit basis, the third quarter 1998 FFO
was $0.65 versus pro forma 1997 third quarter FFO of $0.47, a 38 percent
increase.
On a combined pro forma/actual basis for the first nine months 1998
versus pro forma 1997, FFO increased 27 percent to $31.1 million from $24.5
million. Per share/unit nine month pro forma/actual 1998 FFO of $1.69 represents
a $0.35 or 26 percent increase over the pro forma 1997 nine month FFO per
share/unit of $1.34.
"We are very pleased with the increased profitability of our overall
portfolio." said Jon Bortz, President and CEO of LaSalle Hotel Properties.
"We believe in these uncertain times that the market will reward companies
with high quality assets, sound fiscal policies and favorable operating
results."
For the third quarter of 1998, room revenue per available room (RevPAR)
has increased 3.7 percent to $108.87 compared to $104.99 in the year earlier
third quarter, excluding three hotels: the Radisson South in Bloomington,
Minn., which was severely impacted by the Northwest Airlines strike, and
the Le Meridien Dallas and the Radisson Hotel Tampa at Sabal Park which
had significant renovations. For the total portfolio, the RevPAR in the
third quarter 1998 was flat. Year-to-date 1998 versus 1997, RevPAR increased
5.6 percent to $95.07 versus $90.05.
"In the third quarter, we started and completed our renovation of the
Le Meridien Dallas, substantially completed the renovation of the Le Meridien
New Orleans and began a renovation at the Radisson Tampa," said Mr. Bortz.
"We continue to focus on improving our hotels with $30 million of renovations
scheduled for completion by the end of 1999, including soon-to-begin renovations
at the Marriott Seaview Resort near Atlantic City and the San Diego Paradise
Point Resort."
Participating lease revenues for the third quarter of 1998 increased
61 percent over the pro forma third quarter of 1997 to $19.6 million. For
the nine months of 1998, pro forma/actual lease revenues were $47.3 million,
a 33 percent increase over the same period of 1997. Net income for the
1998 third quarter was up 29 percent to $5.3 million, or $0.35 per share
(basic and diluted), from pro forma net income of $ 4.1 million, or $0.27
per share (basic and diluted), for the third quarter of 1997. For the nine
months ended September 30, 1998, combined pro forma/actual net income was
$15.3 million, or $1.01 per share, compared to pro forma net income of
$ 11.5 million, or $0.76 per share, in the prior year period.
Since the Company had no significant operations until after the completion
of its initial public offering on April 23, 1998, 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.
For the nine months ended September 30, 1998, operating results on a combined
basis are presented as six months pro forma for the first two quarters
and three months actual results for the third quarter.
The pro forma results are not necessarily indicative of what the actual
results of operations would have been for the nine month period ended September
30, 1997 or the six month period ended June 30, 1998, had the Company completed
the initial public offering and acquired the initial ten upscale and luxury
hotels on the date indicated nor does it purport to represent the future
results of operations of the Company. For the two hotels acquired during
the second quarter of 1998, their operating results are being presented
in the pro forma results as of the date of the completion of each respective
acquisition.
On October 20, LaSalle Hotel Properties declared its regular third and
fourth quarter dividends of $0.375 each. The dividends are payable on November
13, 1998 and January 15, 1999 to the shareholders of record at the close
of business on October 30, 1998 and December 31, 1998, respectively. Based
on the closing price on October 28, these dividends on an annualized basis
represent a dividend yield of 13 percent. LaSalle Hotel Properties also
recently announced the establishment of a Dividend Reinvestment Plan (DRIP)
that will allow shareholders to reinvest dividends and purchase LaSalle
Hotel Properties stock without any transaction costs. The plan will be
available beginning with the fourth quarter 1998 dividend.
LaSalle Hotel Properties
Statistical Data for the Hotels
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For the three months ended September 30,
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For the nine months ended September 30,
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|
|
|
1998
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1997
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1998
|
1997
|
Comparable Hotels (a) |
|
|
|
|
Occupancy |
79.4% |
78.5% |
76.7% |
75.8 |
Increase |
1.0% |
|
1.2% |
|
ADR |
$137.18 |
$133.67 |
$138.18 |
$130.41 |
Increase |
2.6% |
|
6.0% |
|
REVPAR |
$108.87 |
$104.99 |
$105.97 |
$98.85 |
Increase |
3.7% |
|
7.2% |
|
Non-Comparable Hotels (b) |
|
|
|
|
Occupancy |
62.4% |
76.0% |
66.7% |
3.4% |
Increase |
(17.9%) |
|
(9.1%) |
|
ADR |
$103.40 |
$96.22 |
$105.35 |
$95.44 |
Increase |
7.5% |
|
10.4% |
|
REVPAR |
$64.49 |
$73.12 |
$70.31 |
$70.04 |
Increase |
(11.8%) |
|
0.4% |
|
Total Portfolio |
|
|
|
|
Occupancy |
74.1% |
77.8% |
73.6% |
75.1% |
Increase |
(4.7%) |
|
(1.9%) |
|
ADR |
$128.42 |
$122.42 |
$129.09 |
$119.96 |
Increase |
4.9% |
|
7.6% |
|
REVPAR |
$95.20 |
$95.19 |
$95.07 |
$90.05 |
Increase |
0.0% |
|
5.6% |
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(a) Includes Le Meridien New Orleans, Marriott Seaview, LaGuardia
Marriott, Omaha Marriott, Holiday Inn Beachside, Holiday Inn Plaza Park,
Le Montrose All Suite, San Diego Paradise Point and Harborside Hyatt.
(b) Includes Le Meridien Dallas and Radisson Tampa which were
under renovation in the third quarter of 1998 and Radisson South in Bloomington,
MN, which was severly impacted by the Northwest Airlines strike in September
1998.
LaSalle Hotel Properties is a leading multi-tenant, multi-operator real
estate investment trust (REIT) which owns 12 upscale and luxury full-service
hotels, totaling 4,120 guest rooms in nine states. The company is focused
on investing in upscale and luxury full-service hotels located primarily
in major business and urban, resort and convention markets. LaSalle Hotel
Properties seeks to grow through strategic relationships with premier internationally
recognized hotel operating companies including Le Meridien Hotels Resorts,
Marriott International, Inc., Radisson Resorts and Hyatt Hotels Corporation.
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 services for
public and private institutions and other real estate owners and investors
world wide.
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.
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