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LaSalle Hotel Properties Posts 3rd Qtr 2012 Net Income of $26.5 million Compared
to $14.9 million in the Prior Year Quarter: RevPAR Grew to $178.43, an Increase of 5.1%

Hotel Operating Statistics

BETHESDA, Md.--October 17, 2012--LaSalle Hotel Properties (NYSE: LHO) today announced results for the quarter ended September 30, 2012. The Company's results include the following:








Third Quarter
Year-to-Date


2012
2011
2012
2011


($'s in millions except per share/unit data)









Total Revenue
$ 237.0

$ 199.1

$ 651.4

$ 540.0
Net income to common shareholders
$ 26.5

$ 14.9

$ 35.2

$ 12.4
Net income to common shareholders per diluted share
$ 0.31

$ 0.18

$ 0.41

$ 0.15
EBITDA(1)
$ 81.3

$ 63.3

$ 191.2

$ 153.8
Adjusted EBITDA(1)
$ 81.7

$ 62.8

$ 201.1

$ 155.2
FFO(1)
$ 58.1

$ 41.9

$ 128.2

$ 95.0
Adjusted FFO(1)
$ 58.4

$ 42.4

$ 138.0

$ 97.4
FFO per diluted share/unit(1)
$ 0.67

$ 0.49

$ 1.49

$ 1.18
Adjusted FFO per diluted share/unit(1)
$ 0.68

$ 0.50

$ 1.61

$ 1.21









RevPAR
$ 178.43

$ 169.80

$ 162.26

$ 154.80
RevPAR growth
5.1 %


4.8 %

Hotel EBITDA Margin
35.9 %
34.1 %
32.6 %
31.1 %
Hotel EBITDA Margin growth
180 bps


155 bps

(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, 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 later in this press release.

Third Quarter Highlights

  • RevPAR: Room revenue per available room (“RevPAR”) for the quarter ended September 30, 2012 increased 5.1 percent to $178.43, as a result of a 3.3 percent increase in average daily rate (“ADR”) to $205.75 and a 1.7 percent improvement in occupancy to 86.7 percent.
  • Hotel EBITDA Margin: The Company's hotel EBITDA margin for the third quarter was 35.9 percent, a 180 basis point improvement compared to the comparable prior year period.
  • Adjusted EBITDA: The Company's adjusted EBITDA was $81.7 million, an increase of 30.1 percent over the third quarter of 2011.
  • Adjusted FFO: The Company generated third quarter adjusted FFO of $58.4 million, or $0.68 per diluted share/unit, compared to $42.4 million or $0.50 per diluted share/unit for the comparable prior year period, an increase of 36.0 percent in adjusted FFO per diluted share/unit.
  • Acquisitions: On July 13, 2012, the Company invested $67.4 million to acquire the performing mezzanine loan secured by the equity interests in the entities that own Shutters on the Beach and Hotel Casa Del Mar in Santa Monica, California. The Company purchased the debt instrument for 93.6 percent of the $72.0 million face value of the loan. The fixed-rate, interest only coupon on the mezzanine loan is 9.76 percent at par value, which translates to a 10.4 percent interest rate on the Company's investment. The mezzanine loan matures on May 11, 2014.
  • Capital Markets: On August 2, 2012, the Company entered into a new $300.0 million unsecured loan. The five-year term loan matures on August 2, 2017, including a one-year extension subject to certain conditions. The term loan was swapped to a fixed interest rate for the full five-year term. The term loan's interest rate will be 2.68 percent when the Company's leverage ratio (as defined by the term loan) is between 4.0 and 4.75 times. $200.0 million of the loan proceeds were funded at closing. The Company has the flexibility to draw the remaining $100.0 million any time during the 95 days following closing and expects to draw these funds toward the end of the 95-day period.
  • Capital Investments: The Company invested $13.7 million of capital in its hotels.
  • Dividends: On September 12, 2012, the Company declared a third quarter 2012 dividend of $0.20 per common share of beneficial interest.

“We are pleased with the performance of our portfolio during the quarter,” said Michael D. Barnello, President and Chief Executive Officer of LaSalle Hotel Properties. “We continued to see the bulk of our revenue increases come through improved average rate. This, in conjunction with our diligent asset management practices led to outstanding hotel EBITDA margin growth of 180 basis points. On the capital markets front, we closed on a very favorable five-year term loan, which enabled us to further reduce the balance on our senior unsecured credit facility.”

Year-to-date Highlights

For the nine months ended September 30, 2012, RevPAR increased 4.8 percent to $162.26, with ADR growth of 4.2 percent to $200.87 and a 0.6 percent improvement in occupancy to 80.8 percent. The Company's hotel EBITDA margin was 32.6 percent, an increase of 155 basis points compared to the comparable prior year period. The Company invested $48.9 million of capital in its hotels during the nine months ended September 30, 2012.

Balance Sheet

As of September 30, 2012, the Company had total outstanding debt of $1.21 billion, including $201.0 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 4.4 times as of September 30, 2012 and its fixed charge coverage ratio was 2.9 times. For the third quarter, the Company's weighted average interest rate was 4.3 percent. As of September 30, 2012, the Company had $22.4 million of cash and cash equivalents on its balance sheet and capacity of $563.1 million available on its credit facilities.

Park Central Renovation Update

The Company plans to commence the renovation and repositioning of the Park Central Hotel in New York City early January 2013 and continue through at least the third quarter and possibly into the fourth quarter of 2013. Of the hotel's 934 rooms, 761 rooms will be renovated as part of the main hotel, which will undergo a lobby, guestroom and corridor renovation. The remaining 173 rooms will be upgraded as part of the premium hotel, which will include a separate lobby on 55th Street, premium amenities and a more upscale guestroom product. The Company expects to invest between $60.0 and $70.0 million to complete the renovation.

“We are very excited about our plans for the Park Central. As would be expected from a renovation of this scope and size, in a property that operates with high occupancy, there will be EBITDA displacement during 2013. This displacement is expected to range between $8.0 and $12.0 million during 2013,” said Michael D. Barnello. “The displacement is one time in nature and it is our expectation that the property will be in a much better position in 2014 and beyond. This EBITDA impact will be partially offset by the January inauguration, which will be helpful for our DC portfolio and the rebound from EBITDA displacement at the Roger Williams and Le Montrose hotels, which occurred during the first half of 2012.”

2012 Outlook

The Company is updating its 2012 outlook, tightening the range to reflect its expectations for the one remaining quarter of the year. The revised outlook assumes no additional acquisitions or equity issuance for the remainder of 2012. The Company's revised financial expectations for 2012 are as follows:








Previous Outlook
Current Outlook


Low-end
High-end
Low-end
High-end


($'s in millions except per share/unit data)
RevPAR growth
4.5 %
6.0 %
4.5 %
4.8 %
Hotel EBITDA Margins
32.3 %
32.8 %
32.3 %
32.5 %
Hotel EBITDA Margin Change
125 bps
175 bps
125 bps
150 bps
Adjusted EBITDA
$ 263.5

$ 272.0

$ 263.5

$ 265.5
Adjusted FFO
$ 179.3

$ 186.8

$ 179.3

$ 180.3
Adjusted FFO per diluted share/unit
$ 2.09

$ 2.17

$ 2.09

$ 2.10

















Earnings Call

The Company will conduct its quarterly conference call on Thursday, October 18, 2012 at 10:00 AM EDT. To participate in the conference call, please dial (888) 811-5421. 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 interests in 40 hotels of which 38 are owned 100 percent. The 38 wholly-owned properties are upscale full-service hotels, totaling 10,200 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, 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.

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, hotel EBITDA margin, adjusted FFO, adjusted EBITDA and derivations thereof and the terms and the renovation plans and future expectations for the Park Central Hotel. 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.


LASALLE HOTEL PROPERTIES
Consolidated Statements of Operations and Comprehensive Income

(in thousands, except share data)

(unaudited)








For the three months ended
For the nine months ended


September 30,
September 30,


2012
2011
2012
2011
Revenues:







Hotel operating revenues:







Room
$ 167,437

$ 133,152

$ 449,315

$ 356,070
Food and beverage
52,896

50,554

156,298

142,999
Other operating department
15,410

14,256

42,105

37,374
Total hotel operating revenues
235,743

197,962

647,718

536,443
Other income
1,254

1,166

3,693

3,585
Total revenues
236,997

199,128

651,411

540,028
Expenses:







Hotel operating expenses:







Room
39,662

30,920

112,203

86,893
Food and beverage
37,751

34,669

111,488

99,249
Other direct
5,659

5,895

15,843

15,737
Other indirect
54,532

48,411

157,725

136,465
Total hotel operating expenses
137,604

119,895

397,259

338,344
Depreciation and amortization
31,480

27,765

92,911

83,572
Real estate taxes, personal property taxes and insurance
11,254

9,199

32,930

26,470
Ground rent
2,627

2,485

6,613

5,861
General and administrative
5,172

4,185

14,635

12,919
Acquisition transaction costs
156

153

4,057

574
Other expenses
922

668

2,391

1,749
Total operating expenses
189,215

164,350

550,796

469,489
Operating income
47,782

34,778

100,615

70,539
Interest income
2,060

8

2,086

22
Interest expense
(14,110 )
(9,856 )
(38,391 )
(29,566 )
Income before income tax expense and discontinued operations
35,732

24,930

64,310

40,995
Income tax expense
(4,943 )
(3,125 )
(6,920 )
(5,670 )
Income from continuing operations
30,789

21,805

57,390

35,325
Discontinued operations:







Income from operations of property disposed of
0

760

0

441
Income tax expense
0

(244 )
0

(112 )
Net income from discontinued operations
0

516

0

329
Net income
30,789

22,321

57,390

35,654
Noncontrolling interests:







Redeemable noncontrolling interest in loss of consolidated entity
0

0

0

2
Noncontrolling interests of common units in Operating Partnership
(116 )
0

(224 )
0
Net (income) loss attributable to noncontrolling interests
(116 )
0

(224 )
2
Net income attributable to the Company
30,673

22,321

57,166

35,656
Distributions to preferred shareholders
(4,166 )
(7,402 )
(17,567 )
(22,550 )
Issuance costs of redeemed preferred shares
0

0

(4,417 )
(731 )
Net income attributable to common shareholders
$ 26,507

$ 14,919

$ 35,182

$ 12,375


















LASALLE HOTEL PROPERTIES
Consolidated Statements of Operations and Comprehensive Income - Continued

(in thousands, except share data)

(unaudited)




For the three months ended
For the nine months ended


September 30,
September 30,


2012
2011
2012

2011
Earnings per Common Share - Basic:







Net income attributable to common shareholders before discontinued operations and excluding amounts attributable to unvested restricted shares
$ 0.31

$ 0.17

$ 0.41

$ 0.15
Discontinued operations

0.00


0.01


0.00


0.00
Net income attributable to common shareholders excluding amounts attributable to unvested restricted shares
$ 0.31

$ 0.18

$ 0.41

$ 0.15
Earnings per Common Share - Diluted:







Net income attributable to common shareholders before discontinued operations and excluding amounts attributable to unvested restricted shares
$ 0.31

$ 0.17

$ 0.41

$ 0.15
Discontinued operations

0.00


0.01


0.00


0.00
Net income attributable to common shareholders excluding amounts attributable to unvested restricted shares
$ 0.31

$ 0.18

$ 0.41

$ 0.15
Weighted average number of common shares outstanding:







Basic

85,876,584


84,640,196


85,278,331


80,392,686
Diluted

86,056,957


84,752,112


85,449,543


80,559,299









Comprehensive Income:







Net income
$ 30,789

$ 22,321

$ 57,390

$ 35,654
Other comprehensive loss:







Unrealized loss on interest rate derivative instruments

(3,839 )

0


(8,534 )

0
Comprehensive income

26,950


22,321


48,856


35,654
Noncontrolling interests:







Redeemable noncontrolling interest in loss of consolidated entity

0


0


0


2
Noncontrolling interests of common units in Operating Partnership

(103 )

0


(195 )

0
Comprehensive (income) loss attributable to noncontrolling interests

(103 )

0


(195 )

2
Comprehensive income attributable to the Company
$ 26,847

$ 22,321

$ 48,661

$ 35,656

















LASALLE HOTEL PROPERTIES
FFO and EBITDA
(in thousands, except share/unit data)
(unaudited)












For the three months ended
For the nine months ended


September 30,
September 30,


2012
2011
2012
2011
Net income attributable to common shareholders
$ 26,507

$ 14,919

$ 35,182

$ 12,375
Depreciation
31,336

27,644

92,483

83,194
Amortization of deferred lease costs
97

69

271

225
Noncontrolling interests:







Redeemable noncontrolling interest in consolidated entity
0

0

0

(2 )
Noncontrolling interests of common units in Operating Partnership
116

0

224

0
Less: Net gain on sale of property
0

(760 )
0

(760 )
FFO
$ 58,056

$ 41,872

$ 128,160

$ 95,032
Management transition and severance costs
614

0

1,540

579
Preferred share issuance costs
0

0

4,417

731
Acquisition transaction costs
156

153

4,057

574
Tax adjustment related to disposition
0

244

0

244
Non-cash ground rent
114

116

342

232
Mezzanine loan discount amortization
(491 )
0

(491 )
0
Adjusted FFO
$ 58,449

$ 42,385

$ 138,025

$ 97,392









Weighted Average number of common shares and units outstanding:







Basic
86,172,884

84,640,196

85,574,631

80,392,686
Diluted
86,353,257

84,752,112

85,745,843

80,559,299









FFO per diluted share/unit
$ 0.67

$ 0.49

$ 1.49

$ 1.18
Adjusted FFO per diluted share/unit
$ 0.68

$ 0.50

$ 1.61

$ 1.21












For the three months ended
For the nine months ended


September 30,
September 30,


2012
2011
2012
2011
Net income attributable to common shareholders
$ 26,507

$ 14,919

$ 35,182

$ 12,375
Interest expense
14,110

9,856

38,391

29,566
Income tax expense (1)
4,943

3,369

6,920

5,782
Depreciation and amortization
31,480

27,765

92,911

83,572
Noncontrolling interests:







Redeemable noncontrolling interest in consolidated entity
0

0

0

(2 )
Noncontrolling interests of common units in Operating Partnership
116

0

224

0
Distributions to preferred shareholders
4,166

7,402

17,567

22,550
EBITDA
$ 81,322

$ 63,311

$ 191,195

$ 153,843
Management transition and severance costs
614

0

1,540

579
Preferred share issuance costs
0

0

4,417

731
Acquisition transaction costs
156

153

4,057

574
Net gain on sale of properties
0

(760 )
0

(760 )
Non-cash ground rent
114

116

342

232
Mezzanine loan discount amortization
(491 )
0

(491 )
0
Adjusted EBITDA
$ 81,715

$ 62,820

$ 201,060

$ 155,199
Corporate expense
6,190

5,128

17,004

14,968
Interest and other income
(3,221 )
(1,172 )
(5,686 )
(3,650 )
Hotel level adjustments, net
(246 )
11,186

(2,011 )
26,712
Hotel EBITDA
$ 84,438

$ 77,962

$ 210,367

$ 193,229

















(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 September 30, 2012 for the Company's period of ownership in 2012 and the comparable period in 2011. Exceptions: Hotel EBITDA excludes March period of ownership for Hotel Palomar, Washington, DC. 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 nine months ended


September 30,
September 30,


2012
2011
2012
2011
Revenues:







Room
$ 167,437

$ 158,797

$ 447,576

$ 424,451
Food and beverage
52,896

55,336

155,797

157,860
Other
15,181

14,821

41,156

39,280
Total hotel revenues
235,514

228,954

644,529

621,591









Expenses:







Room
39,663

38,178

111,615

108,117
Food and beverage
37,748

38,925

111,077

112,203
Other direct
5,581

5,973

15,692

16,209
General and administrative
17,035

17,215

49,530

48,668
Sales and marketing
14,241

14,092

42,544

40,808
Management fees
8,360

7,925

21,390

21,037
Property operations and maintenance
7,625

7,869

22,947

22,630
Energy and utilities
6,312

6,653

17,870

18,492
Property taxes
10,480

10,539

29,977

29,545
Other fixed expenses
4,031

3,623

11,520

10,653
Total hotel expenses
151,076

150,992

434,162

428,362









Hotel EBITDA
$ 84,438

$ 77,962

$ 210,367

$ 193,229
















Note:
This schedule includes operating data for all properties owned as of September 30, 2012 for the Company's period of ownership in 2012 and the comparable period in 2011. Exceptions: The schedule excludes the March period of ownership for Hotel Palomar, Washington, DC. 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 nine months ended


September 30,
September 30,


2012
2011
2012
2011
Total Portfolio







Occupancy

86.7 %

85.2 %

80.8 %

80.3 %
Increase

1.7 %



0.6 %

ADR
$ 205.75

$ 199.21

$ 200.87

$ 192.69
Increase

3.3 %



4.2 %

RevPAR
$ 178.43

$ 169.80

$ 162.26

$ 154.80
Increase

5.1 %



4.8 %












Note:
This schedule includes operating data for all properties owned as of September 30, 2012 for the Company's period of ownership in 2012 and the comparable period in 2011. All stated periods exclude any properties the Company has sold.

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, impairment write-downs 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 as determined by GAAP and should not be considered as alternatives to net income or loss, 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 and impairment losses (to the extent included in EBITDA), 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.


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Contact:  

LaSalle Hotel Properties
Bruce Riggins or Kenneth Fuller, (301) 941-1500


      
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Also See: LaSalle Hotel Properties Posts 2nd Qtr 2012 Net Income of $24.8 million Compared to $16.7 million in the Prior Year Quarter: RevPAR Grew to $180.14, an Increase of 3.8% / Hotel Operating Statistics / July 2012

LaSalle Hotel Properties Posts 1st Qtr 2012 Net Loss of $16.1 million Compared to a Loss of $19.3 million in the Prior Year Quarter: RevPAR Grew to $127.06, an Increase of 6.2% / Hotel Operating Statistics /April 2012

LaSalle Hotel Properties Posts 4th Qtr 2011 Net Income of $.6 million Compared to a Loss of $17 million in the Prior Year Quarter: RevPAR Grew to $140.10, an Increase of 5% / Hotel Operating Statistics / February 2012

LaSalle Hotel Properties Posts 3rd Qtr Net Income of $14.9 million Compared to $10.1 million in the Prior Year Quarter; RevPAR Grew to $166.09, an Increase of 6.4% / Hotel Operating Statistics / October 2011

LaSalle Hotel Properties Posts 2nd Qtr Net Income of $16.7 million Compared to $8 million in the Prior Year Quarter; RevPAR Grew to $168.97, an Increase of 6.3% / Hotel Operating Statistics / July 2011

LaSalle Hotel Properties Posts 1st Qtr Net Loss of $19.3 million Compared to $25.8 million in the Prior Year Quarter; RevPAR Was $114.68, an Increase of 7.1% / Hotel Operating Statistics / April 2011

LaSalle Hotel Properties Posts 3rd Qtr Net Income $10.1 million Compared to $3.4 million in the Prior Year Quarter; RevPAR Was $148.39, an Increase of 6.3% / Hotel Operating Statistics / October 2010

In Three Separate Transactions LaSalle Hotel Properties Acquires the Hotel Monaco San Francisco for $68.5 million, the Westin Philadelphia for $145.0 million and the Embassy Suites Philadelphia -- Center City for $79.0 million / September 2010
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