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TheStreet Open House

LaSalle Hotel Properties Reports Third Quarter 2013 Results

LaSalle Hotel Properties (NYSE: LHO) today announced results for the quarter ended September 30, 2013. The Company’s results include the following:

               
Third Quarter Year-to-Date
2013 2012 2013 2012
($'s in millions except per share/unit data)
 

Entire Portfolio (Including Park Central Hotel)

Total Revenue $ 270.0 $ 237.0 $ 725.3 $ 651.4
EBITDA (1) $ 90.7 $ 81.3 $ 222.0 $ 191.2
Adjusted EBITDA (1) $ 94.2 $ 81.7 $ 227.1 $ 201.1
FFO (1) $ 69.3 $ 58.1 $ 163.7 $ 128.2
Adjusted FFO (1) $ 72.8 $ 58.4 $ 168.8 $ 138.0
FFO per diluted share/unit (1) $ 0.72 $ 0.67 $ 1.71 $ 1.49
Adjusted FFO per diluted share/unit (1) $ 0.76 $ 0.68 $ 1.76 $ 1.61
Net income attributable to common shareholders $ 28.5 $ 26.5 $ 56.3 $ 35.2
Net income attributable to common shareholders per diluted share $ 0.30 $ 0.31 $ 0.59 $ 0.41

 

Portfolio excluding Park Central Hotel

RevPAR $ 186.48 $ 177.40 $ 171.10 $ 161.79
RevPAR growth 5.1 % 5.8 %
Hotel EBITDA Margin 36.0 % 33.1 %
Hotel EBITDA Margin growth 36bps 65bps
 

Entire Portfolio (Including Park Central Hotel)

RevPAR $ 187.32 $ 180.42 $ 168.93 $ 164.63
RevPAR growth 3.8 % 2.6 %
Hotel EBITDA Margin 36.3 % 32.8 %
Hotel EBITDA Margin growth 52bps 20bps
 

(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

Results excluding Park Central Hotel (see Park Central and WestHouse Update below)

  • RevPAR excluding Park Central Hotel: Room revenue per available room (“RevPAR”) for the quarter ended September 30, 2013 increased 5.1 percent to $186.48, as a result of a 2.5 percent increase in occupancy to 87.5 percent and a 2.6 percent increase in average daily rate (“ADR”) to $213.07.
  • Hotel EBITDA Margin excluding Park Central Hotel: The Company’s hotel EBITDA margin for the third quarter was 36.0 percent, a 36 basis point improvement compared to the comparable prior year period.

Entire Portfolio Results

  • RevPAR: RevPAR for the quarter ended September 30, 2013 increased 3.8 percent to $187.32, as a result of a 3.1 percent increase in ADR to $215.46 and a 0.7 percent increase in occupancy to 86.9 percent.
  • Hotel EBITDA Margin: The Company’s hotel EBITDA margin for the third quarter was 36.3 percent, a 52 basis point increase compared to the comparable prior year period.
  • Adjusted EBITDA: The Company’s adjusted EBITDA was $94.2 million, an increase of 15.3 percent over the third quarter of 2012 . During the third quarter of 2013, the Company’s financial results were impacted by $0.2 million of EBITDA displacement from the Park Central and WestHouse renovation project.
  • Adjusted FFO: The Company generated third quarter adjusted FFO of $72.8 million, or $0.76 per diluted share/unit, compared to $58.4 million or $0.68 per diluted share/unit for the comparable prior year period.
  • Acquisitions: The Company invested $303.8 million to acquire four assets:
    • The Harbor Court Hotel and Hotel Triton, both located in San Francisco, CA for $47.8 million;
    • The Serrano Hotel in San Francisco, CA for $71.5 million; and
    • The Southernmost Hotel Collection in Key West, FL for $184.5 million.
  • Capital Investments: The Company invested $28.6 million of capital in its hotels, most of which pertained to the continuation of the Park Central Hotel and WestHouse renovation in New York City.
  • Dividends: On July 17, 2013, the Company declared a third quarter 2013 dividend of $0.28 per common share of beneficial interest, which was a 40 percent increase over the second quarter dividend.

“We are very pleased with our results and activities during the third quarter,” said Michael D. Barnello, President and Chief Executive Officer of LaSalle Hotel Properties. “We acquired four outstanding assets in the markets of San Francisco and Key West, both of which benefit from significant supply constraints and very strong demand. Furthermore, our portfolio’s RevPAR, adjusted EBITDA, and adjusted FFO exceeded the high end of our expectations. As a result of our acquisitions and our performance during the third quarter, we have increased our full year 2013 outlook.”

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