The Bethesda, MD-based company is a self-managed and self-administered real estate investment trust (REIT).
Barclays also downgraded REIT RLJ Lodging Trust (RLJ) to "underweight" from "equal weight" and lowered its price target to $25 from $30.
The downgrades come after the firm reviewed 2015 trends and looked into 2016 and identified these companies as potentially being disproportionately affected by some of the headwinds facing the lodging industry.
"LHO's gateway market, CBD focused portfolio could face continued headwinds due to fixed income, Airbnb and supply growth while RLJ has significant exposure to Houston (lower oil demand, high supply growth) and other high supply growth markets (NYC, Denver, Austin)," the firm said in an analyst note.
Shares of LaSalle Hotel Properties are down by 3.40% to $25.31 on heavy trading volume on Friday afternoon. About 2.45 million of the company's shares have been traded today, compared to its average volume of 1.23 million.
Shares of RLJ Lodging Trust are also in the red by 3.97% to $22 late Friday afternoon.
Separately, recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate LASALLE HOTEL PROPERTIES as a Buy with a ratings score of B-. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, good cash flow from operations and expanding profit margins. We feel its strengths outweigh the fact that the company has had sub par growth in net income.