The decrease in comparable FFO was due to expected losses incurred by LHL,
the recently acquired affiliated lessee.  LHL historically has experienced significant first quarter losses due to seasonality, which traditionally have been recouped in the second quarter.  The Company continues to anticipate the acquisition of LHL will be accretive for the year.

For the quarter ended March 31, 2001 versus the same period in 2000, room
revenue per available room (RevPAR) rose 5.6 percent to $100.87.  The average daily rate (ADR) of $146.01 was a 5.3 percent increase over the prior year period while occupancy increased to 69.1 percent, a 0.3 percent increase over the first quarter of 2000.

�RevPAR growth for our portfolio during the first quarter was above the
industry average and in-line with our expectations,� said Jon Bortz, Chairman and Chief Executive Officer of LaSalle Hotel Properties.  �However, as the quarter progressed, we experienced a continual decline in the year-over-year growth in revenues generated by our hotels.�

The Company�s comparable EBITDA decreased 12 percent to $12.2 million for
the quarter ended March 31, 2001 compared to $13.9 million in the first quarter 2000.  Comparable EBITDA is defined as earnings before interest, taxes, depreciation, amortized expenses, the write-down of properties held for disposition, extraordinary items and one-time charges related to the acquisition of the Company�s affiliated lessee, transition costs associated with becoming a self-managed REIT, and the termination costs associated with the Hotel Viking lease.  The decrease in comparable EBITDA was due to expected seasonal losses incurred by LHL, the recently acquired affiliated lessee.

For the first quarter 2001, the Company experienced a net loss of
$2.3 million, or ($0.13) per diluted share/unit, compared to net income of $1.7 million, or $0.10 per diluted share/unit for the quarter ended March 31, 2000.  The decrease in net income was largely attributable to the acquisition of LHL, the subsequent pick-up of the entire affiliated lessee�s seasonal net loss for the quarter, one-time expenses associated with becoming a self-managed REIT, and the cost of terminating the Hotel Viking lease.

At the end of the first quarter, LaSalle Hotel Properties had total
outstanding debt of approximately $324.3 million, including approximately $150.4 million outstanding under its credit facility and its approximately $11.8 million portion of the joint venture mortgage debt.  On April 6, the Company entered into a two-year, nine-month fixed interest rate swap at 4.87 percent for $30.0 million currently outstanding on its credit facility, which effectively fixes the interest rate at 6.87 percent including the Company�s current spread, which varies with its leverage ratio.

On March 8, the Company announced the acquisition of four hotels in
Washington, D.C., encompassing 502 guestrooms.  LaSalle expects to spend approximately $30 million to redevelop the four-property hotel collection.  The redevelopment program, to be completed in two phases, will include a complete renovation of all guestrooms and suites, lobbies, entrances, public corridors, meeting rooms, and restaurants/bars.  Renovations at two of the properties are expected to begin by early in the third quarter with completion in the fourth quarter.  The second phase, involving the remaining two hotels, should commence during the fourth quarter of this year with completion during the first quarter of 2002.

�Washington, D.C. is a high-growth urban market with significant barriers
to entry and is one of the strongest hotel markets in the country,� said Mr.  Bortz.  �Our plans are to reposition these assets as high quality boutique hotels.  We selected the Kimpton Group to oversee the repositioning program and manage the hotels because of their successful track record converting and operating these types of properties.�

During the first quarter, the Company completed both the transition to
become a self-managed REIT and the acquisition of LHL, its affiliated lessee.  On January 1, 2001, the Company acquired the remaining 91 percent of LHL, which is now a wholly owned subsidiary of LaSalle Hotel Operating Partnership, L.P.  LHL currently leases nine of the Company�s hotels, including the Hotel Viking and the acquired Washington, D.C. hotels.

During the first quarter, the Company refinanced the $40.0 million of 1990
Massachusetts Port Authority (�Massport�) Special Project Revenue Bonds that were secured by its Hyatt Harborside Hotel with $37.1 million of tax-exempt Massport Special Project Revenue Refunding Bonds and $5.4 million of taxable Massport Special Project Revenue Refunding Bonds.  The maturity on the new bonds, which have received a AAA/A-1+ rating from Standard & Poor�s, is 2018.  The new bonds have a weekly floating interest rate, which is currently more favorable than the 10 percent fixed rate for the 1990 bonds.  The Company recorded an extraordinary loss of $1.2 million for the call premium and other charges related to the 1990 bonds.

On April 12, LaSalle Hotel Properties declared its first quarter dividend
of $0.385 per share.  The dividend is payable to all shareholders of record as of April 30, 2001.  Based on the stock�s closing price on May 2, 2001, the first quarter dividend represents an annualized dividend yield of 9 percent.

2001 Outlook

�The economic slowdown is having a significant impact on the demand for
hotel rooms and services.  This weakness in demand is being experienced by all customer segments, although the greatest impact thus far has occurred in the commercial transient and group segments,� advised Mr. Bortz.  �Corporate travel cuts are pervasive and we expect commercial demand to decline further during the year as the industry experiences the full impact of the changes in corporate travel policies.  Both convention and leisure travel have held up reasonably well, but further weakening in demand from these segments is anticipated as the year progresses.�

The Company�s RevPAR growth of 5.6 percent during the first quarter was
robust; however, RevPAR growth rates are expected to be negative for the remainder of 2001.  The Company�s EBITDA margins are expected to contract in 2001 as the combination of reduced rental revenues and higher expenses, especially property insurance and energy expenses, negatively affect margins.  The Company currently anticipates 2001 comparable FFO to be in the range of $2.52 to $2.62 on a per diluted share/unit basis.

�The slowdown of the economy was abrupt and severe, which resulted in
noticeably weaker demand across our hotels,� said Mr. Bortz.  �We no longer
expect the economy to rebound in a material way during 2001.  Since lodging is a lagging industry, we expect our business to worsen considerably in the
second and third quarters and to remain weak in the fourth quarter.  As a
result, we are lowering our 2001 RevPAR growth for the year to (-2) to 0
percent, down from our previous estimate of 3 to 4 percent, with significant
RevPAR declines in the second and third quarters of this year expected.�
�Although our operating results for the first quarter were solid, including our convention-oriented properties, the fundamentals at our urban hotels, which typically cater to corporate transient travelers who have more discretionary travel patterns, have softened considerably.  In addition, we anticipate declining consumer confidence to affect leisure demand at our hotels during the summer, particularly at our resort properties,� Mr. Bortz added.

Nevertheless, the Company remains optimistic in its outlook for 2002 and
beyond due to continuing declines in new construction of hotels and an ongoing expectation for an economic recovery in 2002.  The Company will also continue to benefit from additional declines in short-term interest rates as approximately $175 million or 54% of the Company�s total outstanding long-term debt is floating rate debt.

The Company remains on target to invest a total of approximately $38.0 million in 2001 for property repositioning, renovation projects and other capital improvements, including approximately $22 million for repositioning the DC hotel collection during the year.  As of the end of the first quarter, roughly $4.8 million had been spent on capital expenditures.
 

LaSalle Hotel Properties is a leading multi-tenant, multi-operator real
estate investment trust that owns 17 upscale and luxury full-service hotels, totaling approximately 5,800 guest rooms in 14 markets in 11 states and the District of Columbia.  LaSalle Hotel Properties is focused on investing in upscale and luxury full-service hotels located in urban, resort and convention markets.  The Company seeks to grow through strategic relationships with premier internationally recognized hotel operating companies including Le Meridien Hotels & Resorts, Marriott International, Inc., Radisson Hotels International, Inc., Crestline Hotels and Resorts, Inc., Outrigger Lodging Services, Noble House Hotels & Resorts, Hyatt Hotels Corporation and the Kimpton Hotel & Restaurant Group, LLC.

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.