LaSalle Hotel Properties (NYSE: LHO) today announced results for the quarter and year ended December 31, 2013. The Company’s results include the following:
|($'s in millions except per share/unit data)|
Portfolio excluding Park Central Hotel
|Hotel EBITDA Margin||29.9%||32.3%|
|Hotel EBITDA Margin growth||142bps||84bps|
Entire Portfolio (Including Park Central Hotel)
|Hotel EBITDA Margin||30.6%||32.2%|
|Hotel EBITDA Margin growth||20bps||19bps|
|Adjusted EBITDA (1)||$||72.9||$||62.2||$||300.1||$||263.2|
|Adjusted FFO (1)||$||55.8||$||41.3||$||224.6||$||179.3|
|FFO per diluted share/unit (1)||$||0.50||$||0.47||$||2.21||$||1.97|
|Adjusted FFO per diluted share/unit (1)||$||0.55||$||0.47||$||2.30||$||2.08|
|Net income attributable to common shareholders||$||14.7||$||10.0||$||71.0||$||45.1|
|Net income attributable to common shareholders per diluted share||$||0.14||$||0.11||$||0.73||$||0.52|
(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.
Fourth Quarter Results and Activities
Results excluding Park Central Hotel
- RevPAR excluding Park Central Hotel: Room revenue per available room (“RevPAR”) for the quarter ended December 31, 2013 increased 5.2 percent to $157.05, as a result of a 3.3 percent increase in average daily rate (“ADR”) to $212.21 and a 1.9 percent increase in occupancy to 74.0 percent.
- Hotel EBITDA Margin excluding Park Central Hotel: The Company’s hotel EBITDA margin for the fourth quarter was 29.9 percent, a 142 basis point improvement compared to the comparable prior year period.
Entire Portfolio Results
- RevPAR: RevPAR for the quarter ended December 31, 2013 increased 3.3 percent to $163.96, as a result of a 2.5 percent increase in ADR to $218.55 and a 0.7 percent increase in occupancy to 75.0 percent.
- Hotel EBITDA Margin: The Company’s hotel EBITDA margin for the fourth quarter was 30.6 percent, a 20 basis point increase compared to the comparable prior year period.
- Adjusted EBITDA: The Company’s adjusted EBITDA was $72.9 million, an increase of 17.2 percent over the fourth quarter of 2012 . During the fourth quarter of 2013, the Company’s financial results were impacted by $3.3 million of EBITDA displacement from the Park Central and WestHouse renovation project.
- Adjusted FFO: The Company generated fourth quarter adjusted FFO of $55.8 million, or $0.55 per diluted share/unit, compared to $41.3 million or $0.47 per diluted share/unit for the comparable prior year period.
- Capital Markets: During the fourth quarter 2013, the Company sold 7,705,000 common shares of beneficial interest, including the exercise of the underwriters’ option to purchase additional shares, at a public offering price of $30.05 per share, resulting in net proceeds of $228.4 million.
- Capital Investments: The Company invested $34.6 million of capital in its hotels, much of which pertained to the continuation of the Park Central Hotel and WestHouse renovation in New York City. During the fourth quarter, the Company also completed a guestroom renovation at Viceroy Santa Monica. Renovations were commenced at Onyx Hotel in Boston, Hilton Alexandria Old Town, as well as Hotel George and Donovan House in Washington, DC.
- Dividends: On December 13, 2013, the Company declared a fourth quarter 2013 dividend of $0.28 per common share of beneficial interest.