BETHESDA, Md.--February 5, 2013--LaSalle Hotel Properties (NYSE: LHO) today announced preliminary results for the fourth quarter and year ended December 31, 2013. The Company's preliminary results are as follows:
1) See tables later in press release, which list adjustments that reconcile net income to earnings before interest, taxes, depreciation and amortization ("EBITDA"), adjusted EBITDA, funds from operations ("FFO"), FFO per share/unit, adjusted FFO and adjusted FFO per share/unit. EBITDA, adjusted EBITDA, FFO, FFO per share/unit, adjusted FFO and adjusted FFO per share/unit are non-GAAP financial measures. See further discussion of these non-GAAP measures and reconciliations to net income later in this press release.
"We are very pleased with our results during the fourth quarter as well as the full year 2013," said Michael D. Barnello, President and Chief Executive Officer of LaSalle Hotel Properties. "Our portfolio delivered another year of excellent performance, achieving new portfolio records in average daily rate, occupancy, RevPAR and hotel EBITDA margins and we remain encouraged that there is still substantial room to grow."
"Additionally, we had a very successful year as we made meaningful acquisitions in the high-barrier-to-entry, high-demand markets of San Francisco and Key West and further strengthened our balance sheet," he continued. "Given the favorable supply and demand trends, we remain excited about 2014."
The Company is providing its 2014 outlook, which is based on an economic environment that continues to improve and assumes no acquisitions and no capital markets activities. The Company's RevPAR growth and financial expectations for 2014 are as follows:
Note: For comparison purposes, the RevPAR outlook for the portfolio excluding Park Central is 3.0 to 6.0 percent.
Casa Del Mar and Shutters on the Beach mezzanine loan is expected to be paid off in February 2014, resulting in EBITDA reduction of $6.3 million from 2013 to 2014; and
Income taxes increase to a normal run rate of $8.0 - $10.0 million.
First Quarter 2014 Outlook
Due to the difficult comparison resulting from the presidential inauguration in Washington, DC last year, the Company expects first quarter RevPAR to increase 2.0 percent to 5.0 percent.
The Company is under contract to purchase the leasehold interest in Hotel Vitale in San Francisco, CA for $130.0 million. Hotel Vitale is a 200-room hotel located on the Embarcadero. Closing of this transaction is subject to City of San Francisco, as landlord, approving the assignment of the ground lease. The 2014 Outlook excludes this potential acquisition.
The Company will release its final financial results for the Fourth Quarter 2013 after the market closes on Wednesday, February 19, 2014. The Company will conduct its quarterly conference call on Thursday, February 20, 2014 at 11:00 AM eastern time. To participate in the conference call, please dial (866) 598-9773. Additionally, a live webcast of the conference call will be available through the Company's website. To access, log on to http://www.lasallehotels.com. A replay of the conference call will be archived and available online through the Investor Relations section of http://www.lasallehotels.com.
LaSalle Hotel Properties is a leading multi-operator real estate investment trust. The Company owns 45 hotels and a mezzanine loan secured by two hotels in Santa Monica, CA. The properties are upscale, full-service hotels, totaling approximately 11,400 guest rooms in 14 markets in 10 states and the District of Columbia. The Company focuses on owning, redeveloping and repositioning upscale, full-service hotels located in urban, resort and convention markets. LaSalle Hotel Properties seeks to grow through strategic relationships with premier lodging companies, including Westin Hotels and Resorts, Hilton Hotels Corporation, Outrigger Lodging Services, Noble House Hotels & Resorts, Hyatt Hotels Corporation, Benchmark Hospitality, White Lodging Services Corporation, Commune Hotels and Resorts, Davidson Hotel Company, Denihan Hospitality Group, the Kimpton Hotel & Restaurant Group, LLC, Accor, Destination Hotels & Resorts, HEI Hotels & Resorts, JRK Hotel Group, Inc., Viceroy Hotel Group, Highgate Hotels and Access Hotels & Resorts. For additional information please visit our website at www.lasallehotels.com.