BETHESDA, Md.--(February 22, 2012)--LaSalle Hotel
Properties (NYSE: LHO) today announced results for the fourth quarter
and year ended December 31, 2011. The Company’s results include the
following:
|
|
Fourth Quarter |
|
Year-to-Date |
|
|
2011 |
|
2010 |
|
2011 |
|
2010 |
|
|
($'s
in millions except per share/unit data) |
|
|
|
|
|
|
|
|
|
Total Revenue |
|
$
|
179.0
|
|
|
$
|
161.7
|
|
|
$
|
719.0
|
|
|
$
|
600.4
|
|
Net income (loss)
to common shareholders |
|
$
|
0.6
|
|
|
$
|
(17.0
|
)
|
|
$
|
12.9
|
|
|
$
|
(24.8
|
)
|
Net income (loss)
to common shareholders per diluted share |
|
$
|
0.01
|
|
|
$
|
(0.24
|
)
|
|
$
|
0.16
|
|
|
$
|
(0.36
|
)
|
EBITDA(1)
|
|
$
|
47.1
|
|
|
$
|
27.0
|
|
|
$
|
201.0
|
|
|
$
|
152.4
|
|
Adjusted EBITDA(1)
|
|
$
|
49.2
|
|
|
$
|
43.1
|
|
|
$
|
204.4
|
|
|
$
|
165.0
|
|
FFO(1)
|
|
$
|
28.2
|
|
|
$
|
23.1
|
|
|
$
|
123.3
|
|
|
$
|
92.5
|
|
Adjusted FFO(1)
|
|
$
|
30.3
|
|
|
$
|
26.7
|
|
|
$
|
127.7
|
|
|
$
|
98.1
|
|
FFO per diluted
share/unit(1) |
|
$
|
0.34
|
|
|
$
|
0.32
|
|
|
$
|
1.52
|
|
|
$
|
1.33
|
|
Adjusted FFO per
diluted share/unit(1) |
|
$
|
0.36
|
|
|
$
|
0.37
|
|
|
$
|
1.57
|
|
|
$
|
1.41
|
|
|
|
|
|
|
|
|
|
|
RevPAR |
|
$
|
140.10
|
|
|
$
|
133.37
|
|
|
$
|
147.69
|
|
|
$
|
139.11
|
|
RevPAR growth |
|
|
5.0
|
%
|
|
|
|
|
6.2
|
%
|
|
|
Hotel EBITDA
Margin |
|
|
29.3
|
%
|
|
|
28.4
|
%
|
|
|
30.5
|
%
|
|
|
28.8
|
%
|
Hotel EBITDA
Margin growth |
|
87bps
|
|
|
|
173bps
|
|
|
|
|
|
|
|
|
|
|
|
(1) See tables later in press release, which list
adjustments that reconcile net income (loss) to earnings before
interest, taxes, depreciation and amortization ("EBITDA"), adjusted
EBITDA, funds from operations ("FFO"), FFO per share/unit, adjusted
FFO, adjusted FFO per share/unit and hotel EBITDA. EBITDA, adjusted
EBITDA, FFO, FFO per share/unit, adjusted FFO, adjusted FFO per
share/unit and hotel EBITDA are non-GAAP financial measures. See
further discussion of these non-GAAP measures and reconciliations to
net income (loss) later in this press release.
Fourth Quarter Highlights
- RevPAR: Room revenue per
available room (“RevPAR”) for the quarter ended December 31, 2011
increased 5.0 percent to $140.10, as a result of a 5.0 percent increase
in average daily rate (“ADR”) to $196.16 and a 0.1 percent increase in
occupancy to 71.4 percent. RevPAR at our Washington, DC hotels
increased 6.0 percent.
- RevPAR excluding Indianapolis
Marriott Downtown and Lansdowne Resort: The performance of the
portfolio was impacted by weak RevPAR at Indianapolis Marriott Downtown
and Lansdowne Resort. RevPAR declined at Indianapolis Marriott Downtown
due to additional room supply with the construction of a nearly
1000-room competitor which opened in February 2011. Lansdowne Resort
also negatively impacted the portfolio’s performance and the Company
has recently transitioned the management of this asset to Destination
Hotels & Resorts. The portfolio’s RevPAR excluding Indianapolis
Marriott Downtown and Lansdowne Resort increased 6.6 percent to
$146.11, comprised of a 5.5 percent ADR increase to $201.41 and a 1.1
percent improvement in occupancy to 72.5 percent. By March 2012, the
additional supply in Indianapolis will have been in the market for a
full year and the Company expects performance at Lansdowne Resort to
benefit from the management transition.
- Hotel EBITDA Margin: The
Company’s hotel EBITDA margin for the fourth quarter was 29.3 percent,
an 87 basis point improvement compared to the comparable prior year
period. The margin increase, excluding the impact of a successful real
estate tax appeal for our Chicago properties in the fourth quarter of
2010, was 154 basis points.
- Adjusted EBITDA: The
Company’s adjusted EBITDA was $49.2 million, an increase of 14.1
percent over the fourth quarter of 2010.
- Adjusted FFO: The Company
generated fourth quarter adjusted FFO of $30.3 million, or $0.36 per
diluted share/unit, compared to $26.7 million or $0.37 per diluted
share/unit for the comparable prior year period.
- Acquisitions: The Company
acquired the Villa Florence in San Francisco on October 5, 2011 for
$67.1 million and the Park Central Hotel in New York City on December
29, 2011 for $396.2 million.
- Capital Markets: The
Company completed the following capital markets initiatives during the
fourth quarter:
- On December 14, 2011, the
Company entered into a new $750.0 million senior unsecured credit
facility. The new facility matures on January 30, 2017, including
extensions subject to certain conditions. Additionally, LaSalle Hotel
Lessee, Inc., the Company’s taxable REIT subsidiary, refinanced its
$25.0 million revolver with no change in capacity, on similar terms as
the senior unsecured credit facility.
- During the fourth quarter, the
Company purchased 337,718 of its shares for $6.0 million, an average
cost of $17.80.
- Capital Investments: The
Company invested $18.2 million of capital in its hotels, including the
continuation of the 33 guestroom expansion at Hotel Amarano Burbank and
the commencement of the guestroom renovation at The Liaison Capitol
Hill and meeting space renovation at Westin Michigan Avenue.
- Dividends: On December 15,
2011, the Company declared a fourth quarter 2011 dividend of $0.11 per
common share of beneficial interest.
“Our hotels continued to deliver strong results during the
fourth quarter,” said Michael D. Barnello, President and Chief
Executive Officer of LaSalle Hotel Properties. “Furthermore, we were
able to make two acquisitions during the quarter in key US markets and
close on our new credit facility with attractive terms, which gives us
the capacity and flexibility to make additional opportunistic
investments as they emerge.”
Subsequent Events
- The Company announced that
effective January 25, 2012, Jeff Foland was elected to its Board of
Trustees. Mr. Foland currently serves as Executive Vice President of
United Airlines and President of Mileage Plus Holdings, LLC.
- On February 15, 2012, the Company
engaged Destination Hotels & Resorts to manage Lansdowne Resort.
- During January and February 2012,
the Company sold 1,714,939 common shares through its ATM program at an
average net price of $27.15 per share.
Full Year 2011 Highlights
- RevPAR: RevPAR increased
6.2 percent to $147.69, as a result of a 5.1 percent increase in ADR to
$193.27 and a 1.1 percent increase in occupancy to 76.4 percent. RevPAR
at our Washington, DC hotels increased 6.1 percent.
- Hotel EBITDA Margin: The
Company’s hotel EBITDA margin was 30.5 percent, which was an
improvement of 173 basis points compared to 2010.
- Adjusted EBITDA: The
Company’s adjusted EBITDA was $204.4 million, an increase of 23.9
percent over 2010.
- Adjusted FFO: The Company
generated adjusted FFO of $127.7 million, or $1.57 per diluted
share/unit, compared to $98.1 million or $1.41 per diluted share/unit
during 2010.
- Acquisitions: The Company
invested $543.4 million to acquire three properties during 2011
bringing the two-year acquisition investment total to $1.1 billion. The
2011 acquisitions include the following:
- The Viceroy Santa Monica for
$80.1 million on March 16;
- The Villa Florence in San
Francisco for $67.1 million on October 5; and
- The Park Central Hotel in New
York City for $396.2 million on December 29.
- Capital Markets: The
Company completed several capital markets initiatives during 2011
including the following:
- During the first quarter of
2011, the Company issued $66.4 million of 7.5% Series H Cumulative
Redeemable Preferred Shares and redeemed $27.5 million of 8.375% Series
B Cumulative Redeemable Preferred Shares.
- During 2011, the Company used
its ATM programs to sell 4,064,708 common shares at an average net
price of $27.26 and for total net proceeds of $110.8 million.
- On April 26, 2011, the Company
sold 7,896,612 common shares in an underwritten public offering at an
average net price of $27.44, resulting in net proceeds of $216.7
million.
- On August 29, 2011, the Company
announced that its Board of Trustees authorized a share repurchase
program to acquire up to $100.0 million of the Company’s common shares.
From September through October 2011, the Company acquired 1,389,574 of
its common shares through its share repurchase program at a cost of
$24.5 million and an average price of $17.66.
- On December 14, 2011, the
Company entered into a new $750.0 million senior unsecured credit
facility. The new facility matures on January 30, 2017, including
extensions subject to certain conditions. Additionally, LaSalle Hotel
Lessee, Inc., the Company’s taxable REIT subsidiary, refinanced its
$25.0 million revolver with no change in capacity, on similar terms as
the senior unsecured credit facility.
- Capital Investments: The
Company invested $48.8 million of capital in its hotels throughout the
year, completing renovations at Westin Copley in Boston, Topaz Hotel
and Hotel Rouge in Washington, DC and Hotel Viking in Newport, Rhode
Island. The Company’s investments also included commencing the 33
guestroom expansion at Hotel Amarano Burbank, the guestroom renovation
at The Liaison Capitol Hill and the meeting space renovation at Westin
Michigan Avenue.
Balance Sheet
As of December 31, 2011, the Company had total outstanding
debt of $951.2 million, including $265.0 million outstanding on its
senior unsecured credit facility. Total net debt to trailing 12 month
Corporate EBITDA (as defined in the Company’s senior unsecured credit
facility) was 3.7 times as of December 31, 2011 and its fixed charge
coverage ratio was 2.5 times. For the fourth quarter, the Company’s
weighted average interest rate was 5.4 percent. As of December 31,
2011, the Company had $37.2 million of cash and cash equivalents on its
balance sheet and capacity of $509.3 million available on its credit
facilities.
2012 Outlook
The Company is providing its 2012 outlook based on an economic
environment that continues to improve and assuming no acquisitions. The
Company’s RevPAR growth and financial expectations for 2012 are as
follows:
|
|
|
|
|
|
|
Low-end |
|
High-end |
|
|
($'s
in millions except per share/unit data) |
|
|
|
|
|
RevPAR growth |
|
|
5.0%
|
|
|
7.0%
|
Hotel EBITDA
Margins |
|
|
31.5%
|
|
|
32.8%
|
Hotel EBITDA
Margin Change |
|
75 bps |
|
200 bps |
Adjusted EBITDA |
|
$
|
250.0
|
|
$
|
263.0
|
Adjusted FFO |
|
$
|
164.0
|
|
$
|
175.0
|
Adjusted FFO per
diluted share/unit |
|
$
|
1.92
|
|
$
|
2.05
|
Income Tax
Expenses |
|
$
|
8.0
|
|
$
|
10.0
|
Capital
Investments |
|
$
|
80.0
|
|
$
|
90.0
|
|
|
|
|
|
|
|
2012 First Quarter Outlook
Based on the portfolio’s performance quarter-to-date, the
Company expects first quarter RevPAR to increase 4.0 percent to 5.5
percent, resulting in adjusted EBITDA of $29.0 million to $31.5
million, adjusted FFO of $13.0 million to $15.5 million and adjusted
FFO per share/unit of $0.15 to $0.18. The Company’s outlook for the
first quarter includes room revenue displacement of $2.2 million due to
the renovations at several properties, including The Liaison Capitol
Hill, Le Parc Suite Hotel, Hotel Roger Williams and Westin Michigan
Avenue. Absent this displacement, the Company’s RevPAR outlook would
have been 6.0 percent to 7.5 percent.
Earnings Call
The Company will conduct its quarterly conference call on
Thursday, February 23, 2012 at 9:00 AM EST. To participate in the
conference call, please dial (877) 681-3376. 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 owning 37 upscale full-service hotels, totaling
approximately 9,800 guest rooms in 13 markets in 9 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, Thompson Hotels,
Sandcastle Resorts & Hotels, 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 and Highgate Holdings.
This press release, together with other statements and
information publicly disseminated by the Company, contains certain
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended. The Company intends such
forward-looking statements to be covered by the safe harbor provisions
for forward-looking statements contained in the Private Securities
Litigation Reform Act of 1995 and includes this statement for purposes
of complying with these safe harbor provisions. Forward-looking
statements, which are based on certain assumptions and describe the
Company's future plans, strategies and expectations, are generally
identifiable by use of the words “will,” "believe," "expect," "intend,"
"anticipate," "estimate," "project" or similar expressions.
Forward-looking statements in this press release include, among others,
statements about outlook for RevPAR, adjusted FFO, adjusted EBITDA and
derivations thereof and the Company’s expectation that performance at
Lansdowne Resort will benefit from the management transition. You
should not rely on forward-looking statements since they involve known
and unknown risks, uncertainties and other factors that are, in some
cases, beyond the Company's control and which could materially affect
actual results, performances or achievements. Factors that may cause
actual results to differ materially from current expectations include,
but are not limited to, (i) the Company’s dependence on third-party
managers of its hotels, including its inability to implement strategic
business decisions directly, (ii) risks associated with the hotel
industry, including competition, increases in wages, energy costs and
other operating costs, actual or threatened terrorist attacks,
downturns in general and local economic conditions and cancellation of
or delays in the completion of anticipated demand generators, (iii) the
availability and terms of financing and capital and the general
volatility of securities markets, (iv) risks associated with the real
estate industry, including environmental contamination and costs of
complying with the Americans with Disabilities Act and similar laws,
(v) interest rate increases, (vi) the possible failure of the Company
to qualify as a REIT and the risk of changes in laws affecting REITs,
(vii) the possibility of uninsured losses, (viii) risks associated with
redevelopment and repositioning projects, including delays and cost
overruns and (ix) the risk factors discussed in the Company’s Annual
Report on Form 10-K as updated in its Quarterly Reports. Accordingly,
there is no assurance that the Company's expectations will be realized.
Except as otherwise required by the federal securities laws,
the Company disclaims any obligation or undertaking to publicly release
any updates or revisions to any forward-looking statement contained
herein (or elsewhere) to reflect any change in the Company’s
expectations with regard thereto or any change in events, conditions or
circumstances on which any such statement is based.
For additional information or to receive
press releases via e-mail, please visit our website at www.lasallehotels.com.
Non-GAAP Financial Measures
FFO, EBITDA and Hotel EBITDA
The Company considers the non-GAAP measures of FFO (including
FFO per share/unit), EBITDA and hotel EBITDA to be key supplemental
measures of the Company's performance and should be considered along
with, but not as alternatives to, net income or loss as a measure of
the Company's operating performance. Historical cost accounting for
real estate assets implicitly assumes that the value of real estate
assets diminishes predictably over time. Since real estate values
instead have historically risen or fallen with market conditions, most
real estate industry investors consider FFO, EBITDA and hotel EBITDA to
be helpful in evaluating a real estate company's operations.
The White Paper on FFO approved by NAREIT in April 2002, as
revised in 2011*, defines FFO as net income or loss (computed in
accordance with GAAP), excluding gains or losses from sales of
properties and items classified by GAAP as extraordinary, plus real
estate-related depreciation and amortization (excluding amortization of
deferred finance costs) and after comparable adjustments for the
Company's portion of these items related to unconsolidated entities and
joint ventures. The Company computes FFO consistent with standards
established by NAREIT, which may not be comparable to FFO reported by
other REITs that do not define the term in accordance with the current
NAREIT definition or that interpret the current NAREIT definition
differently than the Company.
With respect to FFO, the Company believes that excluding the
effect of extraordinary items, real estate-related depreciation and
amortization, and the portion of these items related to unconsolidated
entities, all of which are based on historical cost accounting and
which may be of limited significance in evaluating current performance,
can facilitate comparisons of operating performance between periods and
between REITs, even though FFO does not represent an amount that
accrues directly to common shareholders. However, FFO may not be
helpful when comparing the Company to non-REITs.
With respect to EBITDA, the Company believes that excluding
the effect of non-operating expenses and non-cash charges, and the
portion of these items related to unconsolidated entities, all of which
are also based on historical cost accounting and may be of limited
significance in evaluating current performance, can help eliminate the
accounting effects of depreciation and amortization, and financing
decisions and facilitate comparisons of core operating profitability
between periods and between REITs, even though EBITDA also does not
represent an amount that accrues directly to common shareholders.
With respect to hotel EBITDA, the Company believes that
excluding the effect of corporate-level expenses, non-cash items, and
the portion of these items related to unconsolidated entities, provides
a more complete understanding of the operating results over which
individual hotels and operators have direct control. We believe
property-level results provide investors with supplemental information
on the ongoing operational performance of our hotels and effectiveness
of the third-party management companies operating our business on a
property-level basis.
FFO, EBITDA and hotel EBITDA do not represent cash generated
from operating activities determined by GAAP and should not be
considered as alternatives to net income, cash flows from operations or
any other operating performance measure prescribed by GAAP. FFO, EBITDA
and hotel EBITDA are not measures of the Company's liquidity, nor are
FFO, EBITDA and hotel EBITDA indicative of funds available to fund the
Company's cash needs, including its ability to make cash distributions.
These measurements do not reflect cash expenditures for long-term
assets and other items that have been and will be incurred. FFO, EBITDA
and hotel EBITDA may include funds that may not be available for
management's discretionary use due to functional requirements to
conserve funds for capital expenditures, property acquisitions, and
other commitments and uncertainties. To compensate for this, management
considers the impact of these excluded items to the extent they are
material to operating decisions or the evaluation of the Company's
operating performance.
Adjusted FFO and Adjusted EBITDA
The Company presents adjusted FFO (including adjusted FFO per
share/unit) and adjusted EBITDA, which adjusts for certain additional
items including gains on sale of property (to the extent included in
FFO or EBITDA), impairment losses, acquisition transaction costs, costs
associated with the departure of executive officers, costs associated
with the recognition of issuance costs related to the calling of
preferred shares and certain other items. The Company excludes these
items as it believes it allows for meaningful comparisons with other
REITs and between periods and is more indicative of the ongoing
performance of its assets. As with FFO, EBITDA, and hotel EBITDA, the
Company’s calculation of adjusted FFO and adjusted EBITDA may be
different from similar adjusted measures calculated by other REITs.
*As a result of NAREIT issued guidance in 2011, the Company
recast FFO for the year ended December 31, 2010 to exclude loss on
impairment of properties.
LASALLE
HOTEL PROPERTIES |
Consolidated
Statements of Operations |
(in
thousands, except share data) |
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For
the three months ended |
|
For
the year ended |
|
|
December 31, |
|
December 31, |
Revenues:
|
|
2011 |
|
2010 |
|
2011 |
|
2010 |
Hotel operating
revenues: |
|
|
|
|
|
|
|
|
Room |
|
$
|
114,953
|
|
|
$
|
102,841
|
|
|
$
|
471,023
|
|
|
$
|
388,108
|
|
Food and beverage
|
|
|
50,333
|
|
|
|
47,019
|
|
|
|
193,332
|
|
|
|
162,831
|
|
Other
operating department |
|
|
12,276
|
|
|
|
10,951
|
|
|
|
49,650
|
|
|
|
43,703
|
|
Total hotel
operating revenues |
|
|
177,562
|
|
|
|
160,811
|
|
|
|
714,005
|
|
|
|
594,642
|
|
Other
income |
|
|
1,417
|
|
|
|
935
|
|
|
|
5,002
|
|
|
|
5,715
|
|
Total
revenues |
|
|
178,979
|
|
|
|
161,746
|
|
|
|
719,007
|
|
|
|
600,357
|
|
Expenses: |
|
|
|
|
|
|
|
|
Hotel operating
expenses: |
|
|
|
|
|
|
|
|
Room |
|
|
28,946
|
|
|
|
26,669
|
|
|
|
115,839
|
|
|
|
95,271
|
|
Food and beverage
|
|
|
34,589
|
|
|
|
31,610
|
|
|
|
133,838
|
|
|
|
112,757
|
|
Other direct |
|
|
4,653
|
|
|
|
4,315
|
|
|
|
20,390
|
|
|
|
18,753
|
|
Other
indirect |
|
|
46,306
|
|
|
|
42,720
|
|
|
|
182,771
|
|
|
|
153,678
|
|
Total hotel
operating expenses |
|
|
114,494
|
|
|
|
105,314
|
|
|
|
452,838
|
|
|
|
380,459
|
|
Depreciation and
amortization |
|
|
27,710
|
|
|
|
27,457
|
|
|
|
111,282
|
|
|
|
105,587
|
|
Real estate
taxes, personal property taxes and insurance |
|
|
8,955
|
|
|
|
6,017
|
|
|
|
35,425
|
|
|
|
30,897
|
|
Ground rent |
|
|
1,859
|
|
|
|
1,280
|
|
|
|
7,720
|
|
|
|
5,825
|
|
General and
administrative |
|
|
4,201
|
|
|
|
7,038
|
|
|
|
17,120
|
|
|
|
18,802
|
|
Acquisition
transaction costs |
|
|
1,997
|
|
|
|
977
|
|
|
|
2,571
|
|
|
|
3,003
|
|
Impairment of
development property |
|
|
-
|
|
|
|
8,427
|
|
|
|
-
|
|
|
|
8,427
|
|
Other
expenses |
|
|
778
|
|
|
|
749
|
|
|
|
2,527
|
|
|
|
3,287
|
|
Total
operating expenses |
|
|
159,994
|
|
|
|
157,259
|
|
|
|
629,483
|
|
|
|
556,287
|
|
Operating income |
|
|
18,985
|
|
|
|
4,487
|
|
|
|
89,524
|
|
|
|
44,070
|
|
Interest income |
|
|
26
|
|
|
|
48
|
|
|
|
48
|
|
|
|
126
|
|
Interest
expense |
|
|
(10,138
|
)
|
|
|
(10,131
|
)
|
|
|
(39,704
|
)
|
|
|
(36,500
|
)
|
Income before
income tax expense and discontinued operations |
|
|
8,873
|
|
|
|
(5,596
|
)
|
|
|
49,868
|
|
|
|
7,696
|
|
Income
tax expense |
|
|
(1,378
|
)
|
|
|
(227
|
)
|
|
|
(7,048
|
)
|
|
|
(5,075
|
)
|
Income
(loss) from continuing operations |
|
|
7,495
|
|
|
|
(5,823
|
)
|
|
|
42,820
|
|
|
|
2,621
|
|
Discontinued
operations: |
|
|
|
|
|
|
|
|
Income (loss) from operations of
properties disposed of, including gain on sale and loss on impairment
|
|
|
388
|
|
|
|
(5,316
|
)
|
|
|
829
|
|
|
|
(2,502
|
)
|
Income
tax benefit (expense) |
|
|
79
|
|
|
|
629
|
|
|
|
(33
|
)
|
|
|
1,651
|
|
Net
income (loss) from discontinued operations |
|
|
467
|
|
|
|
(4,687
|
)
|
|
|
796
|
|
|
|
(851
|
)
|
Net
income (loss) |
|
|
7,962
|
|
|
|
(10,510
|
)
|
|
|
43,616
|
|
|
|
1,770
|
|
Noncontrolling
interests: |
|
|
|
|
|
|
|
|
Redeemable
noncontrolling interest in loss of consolidated entity |
|
|
-
|
|
|
|
155
|
|
|
|
2
|
|
|
|
191
|
|
Noncontrolling
interests of common units in Operating Partnership |
|
|
(1
|
)
|
|
|
-
|
|
|
|
(1
|
)
|
|
|
-
|
|
Net
(income) loss attributable to noncontrolling interests |
|
|
(1
|
)
|
|
|
155
|
|
|
|
1
|
|
|
|
191
|
|
Net income (loss)
attributable to the Company |
|
|
7,961
|
|
|
|
(10,355
|
)
|
|
|
43,617
|
|
|
|
1,961
|
|
Distributions to
preferred shareholders |
|
|
(7,402
|
)
|
|
|
(6,688
|
)
|
|
|
(29,952
|
)
|
|
|
(26,754
|
)
|
Issuance
costs of redeemed preferred shares |
|
|
-
|
|
|
|
-
|
|
|
|
(731
|
)
|
|
|
-
|
|
Net
income (loss) attributable to common shareholders |
|
$
|
559
|
|
|
$
|
(17,043
|
)
|
|
$
|
12,934
|
|
|
$
|
(24,793
|
)
|
|
|
|
|
|
|
|
|
|
LASALLE
HOTEL PROPERTIES |
Consolidated
Statements of Operations - Continued |
(in
thousands, except share data) |
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended |
|
For the year ended
|
|
|
December 31, |
|
December 31, |
|
|
2011 |
|
2010 |
|
2011 |
|
2010 |
Earnings per
Common Share - Basic: |
|
|
|
|
|
|
|
|
Net (loss) income attributable to
common shareholders before discontinued operations and excluding
amounts attributable to unvested restricted shares
|
|
$
|
-
|
|
$
|
(0.17
|
)
|
|
$
|
0.15
|
|
$
|
(0.35
|
)
|
Discontinued
operations |
|
|
0.01
|
|
|
(0.07
|
)
|
|
|
0.01
|
|
|
(0.01
|
)
|
Net income (loss) attributable to
common shareholders excluding amounts attributable to unvested
restricted shares
|
|
$
|
0.01
|
|
$
|
(0.24
|
)
|
|
$
|
0.16
|
|
$
|
(0.36
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
Common Share - Diluted: |
|
|
|
|
|
|
|
|
Net (loss) income attributable to
common shareholders before discontinued operations and excluding
amounts attributable to unvested restricted shares
|
|
$
|
-
|
|
$
|
(0.17
|
)
|
|
$
|
0.15
|
|
$
|
(0.35
|
)
|
Discontinued
operations |
|
|
0.01
|
|
|
(0.07
|
)
|
|
|
0.01
|
|
|
(0.01
|
)
|
Net income (loss) attributable to
common shareholders excluding amounts attributable to unvested
restricted shares
|
|
$
|
0.01
|
|
$
|
(0.24
|
)
|
|
$
|
0.16
|
|
$
|
(0.36
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number of common shares outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
|
83,417,987
|
|
|
72,570,889
|
|
|
|
81,155,228
|
|
|
69,549,441
|
|
Diluted |
|
|
83,530,710
|
|
|
72,570,889
|
|
|
|
81,326,304
|
|
|
69,549,441
|
|
|
|
|
|
|
|
|
|
|
LASALLE
HOTEL PROPERTIES |
FFO
and EBITDA |
(in
thousands, except share/unit data) |
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For
the three months ended |
|
For
the year ended |
|
|
December 31, |
|
December 31, |
|
|
2011 |
|
2010 |
|
2011 |
|
2010 |
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to common shareholders |
|
$
|
559
|
|
|
$
|
(17,043
|
)
|
|
$
|
12,934
|
|
|
$
|
(24,793
|
)
|
Depreciation(1)
|
|
|
27,566
|
|
|
|
27,635
|
|
|
|
110,760
|
|
|
|
110,138
|
|
Amortization of
deferred lease costs |
|
|
93
|
|
|
|
85
|
|
|
|
318
|
|
|
|
363
|
|
Noncontrolling
interests: |
|
|
|
|
|
|
|
|
Redeemable
noncontrolling interest in consolidated entity |
|
|
-
|
|
|
|
(155
|
)
|
|
|
(2
|
)
|
|
|
(191
|
)
|
Noncontrolling
interests of common units in Operating Partnership |
|
|
1
|
|
|
|
-
|
|
|
|
1
|
|
|
|
-
|
|
Gain on sale of
properties |
|
|
-
|
|
|
|
6
|
|
|
|
(760
|
)
|
|
|
(29,162
|
)
|
Loss on
impairment of properties |
|
|
-
|
|
|
|
12,561
|
|
|
|
-
|
|
|
|
36,129
|
|
FFO |
|
$
|
28,219
|
|
|
$
|
23,089
|
|
|
$
|
123,251
|
|
|
$
|
92,484
|
|
|
|
|
|
|
|
|
|
|
Preferred share
issuance costs |
|
|
-
|
|
|
|
-
|
|
|
|
731
|
|
|
|
-
|
|
Acquisition
transaction costs |
|
|
1,997
|
|
|
|
977
|
|
|
|
2,571
|
|
|
|
3,003
|
|
Tax adjustment
related to disposition |
|
|
-
|
|
|
|
-
|
|
|
|
244
|
|
|
|
-
|
|
Costs associated
with CFO departure |
|
|
-
|
|
|
|
2,612
|
|
|
|
579
|
|
|
|
2,612
|
|
Non-cash
ground rent |
|
|
115
|
|
|
|
-
|
|
|
|
347
|
|
|
|
-
|
|
Adjusted
FFO |
|
$
|
30,331
|
|
|
$
|
26,678
|
|
|
$
|
127,723
|
|
|
$
|
98,099
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of
common shares and units outstanding:
|
|
|
|
|
|
|
|
|
Basic |
|
|
83,427,649
|
|
|
|
72,570,889
|
|
|
|
81,157,663
|
|
|
|
69,549,441
|
|
Diluted |
|
|
83,540,372
|
|
|
|
72,671,490
|
|
|
|
81,328,739
|
|
|
|
69,722,700
|
|
|
|
|
|
|
|
|
|
|
FFO per
diluted share/unit |
|
$
|
0.34
|
|
|
$
|
0.32
|
|
|
$
|
1.52
|
|
|
$
|
1.33
|
|
|
|
|
|
|
|
|
|
|
Adjusted FFO
per diluted share/unit |
|
$
|
0.36
|
|
|
$
|
0.37
|
|
|
$
|
1.57
|
|
|
$
|
1.41
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For
the three months ended |
|
For
the year ended |
|
|
December 31, |
|
December 31, |
|
|
2011 |
|
2010 |
|
2011 |
|
2010 |
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to common shareholders |
|
$
|
559
|
|
|
$
|
(17,043
|
)
|
|
$
|
12,934
|
|
|
$
|
(24,793
|
)
|
Interest expense(1)
|
|
|
10,138
|
|
|
|
10,131
|
|
|
|
39,704
|
|
|
|
36,504
|
|
Income tax
expense (benefit)(1) |
|
|
1,299
|
|
|
|
(402
|
)
|
|
|
7,081
|
|
|
|
3,424
|
|
Depreciation and
amortization(1) |
|
|
27,710
|
|
|
|
27,766
|
|
|
|
111,282
|
|
|
|
110,676
|
|
Noncontrolling
interests: |
|
|
|
|
|
|
|
|
Redeemable
noncontrolling interest in consolidated entity |
|
|
-
|
|
|
|
(155
|
)
|
|
|
(2
|
)
|
|
|
(191
|
)
|
Noncontrolling
interests of common units in Operating Partnership |
|
|
1
|
|
|
|
-
|
|
|
|
1
|
|
|
|
-
|
|
Distributions
to preferred shareholders |
|
|
7,402
|
|
|
|
6,688
|
|
|
|
29,952
|
|
|
|
26,754
|
|
EBITDA |
|
$
|
47,109
|
|
|
$
|
26,985
|
|
|
$
|
200,952
|
|
|
$
|
152,374
|
|
|
|
|
|
|
|
|
|
|
Preferred share
issuance costs |
|
|
-
|
|
|
|
-
|
|
|
|
731
|
|
|
|
-
|
|
Acquisition
transaction costs |
|
|
1,997
|
|
|
|
977
|
|
|
|
2,571
|
|
|
|
3,003
|
|
Gain on sale of
properties |
|
|
-
|
|
|
|
6
|
|
|
|
(760
|
)
|
|
|
(29,162
|
)
|
Loss on
impairment of properties |
|
|
-
|
|
|
|
12,561
|
|
|
|
-
|
|
|
|
36,129
|
|
Costs associated
with CFO departure |
|
|
-
|
|
|
|
2,612
|
|
|
|
579
|
|
|
|
2,612
|
|
Non-cash
ground rent |
|
|
115
|
|
|
|
-
|
|
|
|
347
|
|
|
|
-
|
|
Adjusted EBITDA
|
|
$
|
49,221
|
|
|
$
|
43,141
|
|
|
$
|
204,420
|
|
|
$
|
164,956
|
|
|
|
|
|
|
|
|
|
|
Corporate expense
|
|
|
4,823
|
|
|
|
5,432
|
|
|
|
19,792
|
|
|
|
20,985
|
|
Interest and
other income(1) |
|
|
(1,442
|
)
|
|
|
(995
|
)
|
|
|
(5,093
|
)
|
|
|
(5,899
|
)
|
Hotel
level adjustments, net |
|
|
(998
|
)
|
|
|
968
|
|
|
|
(2,228
|
)
|
|
|
13,022
|
|
Hotel
EBITDA |
|
$
|
51,604
|
|
|
$
|
48,546
|
|
|
$
|
216,891
|
|
|
$
|
193,064
|
|
|
|
|
|
|
|
|
|
|
(1)
Includes amounts from discontinued operations. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
With respect to
hotel EBITDA, the Company believes that excluding the effect of
corporate-level expenses, non-cash items, and the portion of these
items related to unconsolidated entities, provides a more complete
understanding of the operating results over which individual hotels and
operators have direct control. We believe property-level results
provide investors with supplemental information on the ongoing
operational performance of our hotels and effectiveness of the
third-party management companies operating our business on a
property-level basis. |
|
Hotel EBITDA
includes all properties owned as of December 31, 2011 for the Company's
period of ownership in 2011 and the comparable period in 2010.
Exceptions: Hotel EBITDA excludes the March period of ownership for
Viceroy Santa Monica and the December period of ownership for Park
Central Hotel. Hotel EBITDA for all stated periods excludes any
properties the Company has sold. |
|
LASALLE
HOTEL PROPERTIES |
Hotel
Operational Data |
Schedule
of Property Level Results |
(in
thousands) |
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended |
|
For
the year ended |
|
|
December 31, |
|
December 31, |
|
|
2011 |
|
2010 |
|
2011 |
|
2010 |
Revenues: |
|
|
|
|
|
|
|
|
Room |
|
$
|
114,036
|
|
$
|
108,628
|
|
$
|
469,442
|
|
$
|
442,244
|
Food and beverage
|
|
|
50,263
|
|
|
50,832
|
|
|
193,005
|
|
|
182,376
|
Other |
|
|
11,863
|
|
|
11,356
|
|
|
47,880
|
|
|
45,628
|
Total
hotel revenues |
|
|
176,162
|
|
|
170,816
|
|
|
710,327
|
|
|
670,248
|
|
|
|
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
|
|
|
Room |
|
|
28,778
|
|
|
28,175
|
|
|
115,382
|
|
|
110,543
|
Food and beverage
|
|
|
34,546
|
|
|
34,607
|
|
|
133,569
|
|
|
127,975
|
Other direct |
|
|
4,523
|
|
|
4,353
|
|
|
19,857
|
|
|
19,601
|
General and
administrative |
|
|
14,824
|
|
|
14,850
|
|
|
56,606
|
|
|
55,184
|
Sales and
marketing |
|
|
12,520
|
|
|
12,318
|
|
|
50,211
|
|
|
48,470
|
Management fees |
|
|
6,371
|
|
|
6,660
|
|
|
24,879
|
|
|
24,476
|
Property
operations and maintenance |
|
|
6,453
|
|
|
6,669
|
|
|
26,061
|
|
|
25,507
|
Energy and
utilities |
|
|
4,971
|
|
|
5,160
|
|
|
21,114
|
|
|
21,252
|
Property taxes |
|
|
7,992
|
|
|
6,183
|
|
|
31,948
|
|
|
30,778
|
Other
fixed expenses |
|
|
3,580
|
|
|
3,295
|
|
|
13,809
|
|
|
13,398
|
Total
hotel expenses |
|
|
124,558
|
|
|
122,270
|
|
|
493,436
|
|
|
477,184
|
|
|
|
|
|
|
|
|
|
Hotel
EBITDA |
|
$
|
51,604
|
|
$
|
48,546
|
|
$
|
216,891
|
|
$
|
193,064
|
|
|
|
|
|
|
|
|
|
Note: |
This schedule
includes operating data for all properties owned as of December 31,
2011 for the Company's period of ownership in 2011 and the comparable
period in 2010. Exceptions: The schedule excludes the March period of
ownership for Viceroy Santa Monica and the December period of ownership
for Park Central Hotel. All stated periods exclude any properties the
Company has sold. Hotel EBITDA margin is calculated by dividing hotel
EBITDA for the period by the total hotel revenues for the period. |
|
LASALLE
HOTEL PROPERTIES |
Statistical Data for the Hotels |
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
For
the three months ended |
|
For
the year ended |
|
|
December 31, |
|
December 31, |
|
|
2011 |
|
2010 |
|
2011 |
|
2010 |
Total Portfolio |
|
|
|
|
|
|
|
|
Occupancy |
|
|
71.4%
|
|
|
71.4%
|
|
|
76.4%
|
|
|
75.6%
|
Increase |
|
|
0.1%
|
|
|
|
|
1.1%
|
|
|
ADR |
|
$
|
196.16
|
|
$
|
186.91
|
|
$
|
193.27
|
|
$
|
183.98
|
Increase |
|
|
5.0%
|
|
|
|
|
5.1%
|
|
|
RevPAR |
|
$
|
140.10
|
|
$
|
133.37
|
|
$
|
147.69
|
|
$
|
139.11
|
Increase |
|
|
5.0%
|
|
|
|
|
6.2%
|
|
|
|
|
|
|
|
|
|
|
|
Note: |
This schedule
includes operating data for all properties owned as of December 31,
2011 for the Company's period of ownership in 2011 and the comparable
period in 2010. All stated periods exclude any properties the Company
has sold. |
|
LASALLE
HOTEL PROPERTIES |
Statistical
Data for the Hotels |
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Prior
Year Operating Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter
|
|
Second Quarter
|
|
Third Quarter
|
|
Fourth Quarter
|
|
Full Year |
|
|
2011
|
|
2011
|
|
2011
|
|
2011
|
|
2011
|
Occupancy |
|
70.1%
|
|
84.9%
|
|
85.0%
|
|
73.7%
|
|
78.4%
|
ADR |
|
$169.51
|
|
$202.77
|
|
$199.54
|
|
$201.39
|
|
$194.24
|
RevPAR |
|
$118.75
|
|
$172.16
|
|
$169.61
|
|
$148.39
|
|
$152.36
|
|
|
|
|
|
|
|
|
|
|
|
Note: |
|
|
|
|
|
|
|
|
|
|
This
schedule includes operating data for all properties owned as of
December 31, 2011. |
|