For the quarter ended September 30, 1999 versus the same period in 1998, room revenue per available room (RevPAR) on a comparable hotel basis rose 11.5 percent to $123.48.  The average daily rate (ADR) of $153.21 for comparable hotels represented a 10.8 percent increase over the prior year period while comparable hotel average occupancy increased to 80.6 percent, a 0.7 percent increase over the third quarter of 1998.  For the first nine months of 1999 versus the same period in 1998, RevPAR on a comparable hotel basis increased a strong 7.3 percent.  For the total portfolio, RevPAR in the third quarter 1999 increased 10.8 percent.

�RevPAR growth for our hotel portfolio significantly outperformed the overall market. We attribute this strong growth to our strategic focus on owning high quality hotels in high barrier to entry urban, resort and convention markets, and our extensive internal reinvestment program,� said Jon Bortz, President and Chief Executive Officer of LaSalle Hotel Properties. �Results were aided by strong demand in the leisure and group business segments which more than offset the impact of Hurricane Floyd and overall bad weather on the East coast during the quarter.�

�Based on current room booking trends, we expect portfolio-wide RevPAR to climb by three to five percent in the fourth quarter and to end the year in the four to five percent range for portfolio-wide RevPAR growth. For the year 2000, while we expect that overall industry performance will continue to soften, we anticipate portfolio-wide RevPAR growth in the three to four percent range,� continued Mr. Bortz.  On an actual basis for the first nine months of 1999 versus pro forma 1998, FFO increased 13.9 percent to $35.4 million from $31.1 million. Nine month actual 1999 FFO of $1.92 per diluted share/unit represents a $0.23 or 13.6 percent increase over the pro forma 1998 nine month FFO of $1.69 per diluted share/unit.  Participating lease revenues for the third quarter 1999 increased 18.4 percent to $23.2 million over third quarter 1998. Net income for the 1999 third quarter was $6.2 million, or $0.40 per diluted share, compared to net income of $5.3 million, or $0.35 per diluted share for the third quarter 1998.

�We continue to reap the rewards of investing in our hotels through extensive renovation programs. During 1998 and 1999, we will have spent approximately $9,500 per guestroom renovating and repositioning our hotels,� said Mr. Bortz. �We also plan to invest an additional $25 million, or approximately $6,000 per guestroom in 2000, including two major repositioning programs.�

Phase two of the San Diego Paradise Point Resort renovation/repositioning commenced in September and will include the completion of the guestroom renovation, as well as the completion of a new lobby, food and beverage facilities, and significantly enhanced landscaping and resort grounds. 
 

The Company has also accelerated the renovation of the Hotel Viking, which will begin in November and result in the closing of the hotel during the first quarter of 2000. �After an extensive evaluation of the Viking repositioning project, we determined that completing the renovation of all of the guestrooms and public areas and the 36-room expansion prior to the prime 2000 season would minimize displaced business,� said Mr. Bortz. �We continue to be encouraged by the strength of the Newport, Rhode Island resort market and the opportunities offered by this recent acquisition.�

Situated on Bellevue Avenue in Newport, Rhode Island, the 182-room Hotel Viking and adjacent 12-room historic inn is located just blocks from Newport Harbor, historic attractions, Newport mansions, and the downtown shopping and dining district. The historic four-acre resort features an indoor pool, fitness center, two restaurants and two lounges, including a rooftop bar featuring breathtaking views of Newport Harbor. The facilities also include 29,000 square feet of meeting space and the fully-restored, 250-seat Kay Chapel.

During the fourth quarter, LaSalle Hotel Properties will also complete the final phase of the Radisson Tampa renovation which began in the third quarter, and begin the exterior renovation and guestroom improvement program at Le Montrose, a 131-room luxury upscale hotel located in West Hollywood, California.  Since the Company had no significant operations until after the completion of its initial public offering on April 29, 1998, pro forma operating results for the first nine months of 1998 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, 1998. 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 the nine month period ended September 30, 1998, had the Company completed the initial public offering and acquired and leased 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.
 

 (A)  Non-Comparable hotels for:

• Three months ended September 30 include Le Meridien Dallas, Radisson Tampa, and Radisson Convention Hotel.
• Nine months ended September 30 include Marriott Seaview, San Diego Paradise Point Resort, and Radisson Convention Hotel in Quarters 1 and 2, and Le Meridien Dallas, Radisson Tampa, and Radisson Convention Hotel in Quarter 3.
• Comparable hotels include all Hotels excluding those in Non-Comparable hotels.

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.