Exhibit 99.1
Contact: Raymond Martz, Treasurer, +301/941-1516
LASALLE HOTEL PROPERTIES REPORTS 2004 RESULTS
RevPAR increases 9.1 percent in 2004 versus prior year
BETHESDA, MD, February 23, 2005 -- LaSalle Hotel Properties (NYSE:
LHO) today reported net income to common shareholders of $10.7 million, or
$0.39 per diluted share for the year ended December 31, 2004, compared to net
income of $28.0 million, or $1.37 per diluted share for the prior year period.
Prior year net income includes the $36.7 million net gain on sale of the New
Orleans Grande Hotel and Key West Holiday Inn Beachside Resort and the $2.5
million impairment charge related to the Key West property.
For the year ended December 31, 2004, the Company generated funds
from operations ("FFO") of $48.4 million versus $26.8 million for the same
period of 2003. On a per diluted share/unit basis, FFO for 2004 was $1.74
versus $1.28 a year ago. FFO for 2004 includes a contingent litigation expense
of $0.9 million associated with the Company's ongoing litigation with Meridien
and related affiliates. FFO for the prior year includes the $2.5 million
non-cash impairment expense for the Key West Holiday Inn Beachside Resort and
the $1.1 million non-cash expense related to the early extinguishment of the
debt assumed by the buyers attributable to the sales of the New Orleans Grande
Hotel and Key West Holiday Inn Beachside Resort.
The Company's earnings before interest, taxes, depreciation and
amortization ("EBITDA") for the year decreased to $76.3 million from $87.3
million for 2003. EBITDA for the current year includes the $2.6 million net
gain on the sale of the Omaha Marriott. EBITDA for the prior year includes the
$36.7 million net gain on sale of the New Orleans and Key West properties and
the $2.5 million impairment charge related to the Key West property.
Room revenue per available room ("RevPAR") increased 9.1 percent in
2004 to $103.49 versus the previous year. Average daily rate ("ADR") increased
4.0 percent to $152.31 from the prior year, while occupancy increased 4.9
percent to 67.9 percent.
"Our business-oriented hotels continued to lead the portfolio in
RevPAR growth in 2004 due to the ongoing increases in corporate demand,
especially business transient travel, which enabled many of our hotel
operators to achieve pricing power, especially in markets such as Washington,
D.C, Boston and New York,"
LHO REPORTS 2004 RESULTS --
said Jon Bortz, Chairman and Chief Executive Officer of LaSalle Hotel
Properties. "Additionally, our convention-oriented properties also generated
solid results as the group segment exhibited steady improvements in demand."
The Company's hotels generated $78.7 million of EBITDA for the year
compared with $71.3 million for the same period last year. EBITDA margins
across the Company's portfolio increased 68 basis points ("bps") from the
prior year. This was largely attributable to the robust RevPAR growth during
the year, which was partly offset by the continued above-inflationary
increases in salaries, wages and benefits, insurance, and energy costs.
"The Company was able to achieve substantial improvements in both
RevPAR and FFO during 2004," said Mr. Bortz. "We attribute this improvement to
the lodging industry's recovery in 2004 and our consistent strategy of owning
high quality hotels in strong markets, our ongoing capital reinvestment
programs, our aggressive asset management and our conservative balance sheet
strategy."
2004 Highlights
- ---------------
On February 10, 2004, the Company acquired the Indianapolis Marriott
Downtown. The 615-room AAA rated Four-Diamond convention hotel is centrally
located in the heart of Indianapolis' business and leisure district. The hotel
is operated pursuant to a Marriott franchise agreement and managed by White
Lodging Services Corporation. The Indianapolis Marriott Downtown was built in
2001 and features more than 38,000 square feet of meeting space, including a
21,000 square foot ballroom, two restaurants, an upscale fitness center, an
indoor swimming pool and an on-site parking facility.
The Company prepaid the 7.5 percent floating rate debt securing the
Lansdowne Resort on February 11, 2004. The Company obtained annual interest
expense savings of approximately $1.4 million as a result of the Lansdowne
debt prepayment and the Company's 5.25 percent fixed-rate mortgage on its San
Diego Paradise Point Resort arranged in December 2003.
On February 26, 2004, the Company successfully executed a $57.0
million interest-only secured loan with Column Financial, Inc, a wholly-owned
subsidiary of Credit Suisse First Boston. The term of the loan is three years
with two one-year extension options and is collateralized by the Company's
615-room Indianapolis Marriott Downtown Hotel. Contemporaneously with the
financing, the Company executed a three-year swap agreement to fix the rate of
the loan at 3.56 percent for three years.
2
LHO REPORTS 2004 RESULTS --
In March 2004, the Company and Starwood Hotels & Resorts Worldwide,
Inc. reflagged the 565-room convention-oriented Radisson Hotel South and Plaza
Tower in Bloomington, Minnesota as the Sheraton Bloomington Minneapolis South
Hotel. In conjunction with the brand conversion, a $10.5 million two-year
renovation and rebranding program commenced at the hotel. This renovation and
rebranding program includes the addition of Sheraton's acclaimed amenities, a
lobby renovation and a complete guestroom refurbishment.
In May 2004, the Company priced a public offering of 3.0 million of
its common shares of beneficial interest resulting in net proceeds of $61.0
million. UBS Securities LLC acted as the sole underwriter for this
transaction.
On May 28, 2004, the Company acquired the Hilton Alexandria Old Town
for $59.0 million. The 241-room upscale full-service hotel is located in the
heart of historic downtown Alexandria, Virginia, one of the most vibrant
markets in the Washington, D.C. region. The hotel is operated pursuant to a
Hilton franchise agreement and managed by Sandcastle Resorts & Hotels.
On August 26, 2004, the Company successfully executed a $34.4 million
secured loan with Wells Fargo Bank at a fixed rate of 4.98 percent. The term
of the loan is five years and is collateralized by the Company's 241-room
Hilton Alexandria Old Town Hotel.
On August 30, 2004, the Company successfully increased its senior
unsecured credit facility to $300.0 million from $215.0 million. The facility
continues to be co-led by Bank of Montreal, as the Administrative Agent, and
Bank of America, as the Syndication Agent. In addition, the Company's
affiliated lessee revolving credit facility, which is provided by U.S. Bank
National Association, was increased to $25.0 million from $13.0 million.
On September 15, 2004, the Company sold the 299-room Omaha Marriott
for $28.5 million. As a result of the disposition, the Company recognized a
$2.6 million net gain on sale.
On November 16, 2004, the Company priced a public offering of 1.75
million of its common shares of beneficial interest resulting in net proceeds
of $54.9 million. Raymond James & Associates, Inc. and Wachovia Capital
Markets, LLC led the offering with A.G. Edwards & Sons, Inc., Harris Nesbitt
Corp., KeyBanc Capital Markets, Legg Mason Wood Walker, Incorporated, Robert
W. Baird & Co., Incorporated, and Stifel, Nicolaus & Company, Incorporated
participating as co-managers.
3
LHO REPORTS 2004 RESULTS --
On November 18, 2004, the Company acquired the Chaminade Resort for
$18.5 million. The AAA Four-Diamond resort and executive conference center
features 153 guestrooms and is located on 288 acres in the lower Santa Cruz
Mountains, approximately 30 miles south of San Jose and 75 miles south of San
Francisco. The resort is managed by Benchmark Hospitality.
"We are extremely pleased with the acquisitions we made during the
year," said Mr. Bortz. "These new properties not only increased the geographic
and market diversification of our portfolio, but also added several new
operators and brands to our already diverse portfolio."
Throughout 2004, the Company invested approximately $35.7 million of
capital throughout its portfolio, including approximately $16.1 million for
the new golf course, guestroom renovation and master plan development at the
Lansdowne Resort. Other major investments during the year included
approximately $5.0 million for the brand conversion and guestroom renovation
of the 565-room Sheraton Bloomington Hotel; approximately $3.3 million for the
guest bathroom, lobby and fire and life safety renovations of the 407-room
Westin City Center Dallas Hotel; approximately $3.3 million for the public,
meeting and ballroom renovation of the 297-room Seaview Marriott Resort
located outside Atlantic City and approximately $2.3 million for the guest
suite renovations at Le Montrose Suite Hotel located in West Hollywood.
During 2004, the Company paid $0.90 in common dividends per share,
which represents 89.24 percent ordinary income and 10.76 percent capital gains
for tax purposes. In July 2004, the Company increased its monthly payment by
14 percent to $0.08 per common share of beneficial interest from $0.07 per
common share of beneficial interest.
As of year-end 2004, LaSalle had total outstanding debt of
approximately $268.2 million, including its $13.9 million portion of the joint
venture debt related to the Chicago Marriott. The Company's $300.0 million
unsecured credit facility had no outstanding balance as of December 31, 2004.
Interest for the year was approximately $13.1 million. As of December 31,
2004, based on the Company's bank covenants under its senior unsecured credit
facility, the Company's EBITDA to interest coverage ratio was approximately
5.1 and debt to EBITDA ratio was approximately 3.0, one of the lowest in the
lodging industry. At the end of the year, the Company also had $32.1 million
of unrestricted cash and cash equivalents on its balance sheet, and $7.4
million of restricted cash.
4
LHO REPORTS 2004 RESULTS --
"We continue to operate with a conservatively managed balance sheet
and are very pleased with the terms and pricing of the financings we completed
in 2004," advised Hans Weger, Chief Financial Officer of LaSalle Hotel
Properties. "For the year, our weighted average interest rate was 4.6 percent,
one of the lowest in the industry. Additionally, we have no debt maturity
prior to 2007. As a result, we believe we have the flexibility and capacity to
take advantage of a wide array of opportunities in the investment market for
hotels and resorts, as they may arise."
Fourth Quarter Results
- ----------------------
For the fourth quarter 2004, LaSalle Hotel Properties reported a net
loss applicable to common shareholders of ($0.3) million, or ($0.01) per
diluted share, compared with a net loss of ($1.1) million, or ($0.05) per
diluted share, for the previous year.
FFO improved 32.2 percent to $10.3 million versus $7.8 million for
the fourth quarter 2003. On a per diluted share/unit basis, fourth quarter
2004 FFO was $0.35 versus $0.33 for the prior year's quarter. EBITDA increased
by 20.4 percent to $14.6 million in the fourth quarter 2004 from $12.2 million
in the same quarter of 2003.
RevPAR for the fourth quarter 2004 increased 1.0 percent compared
with the prior year's quarter. ADR increased 3.1 percent from the prior year
to $150.10. Fourth quarter performance was led by the Company's hotels located
in major urban markets including Washington, D.C., Boston and New York.
Occupancy decreased 2.0 percent to 62.7 percent, largely due to the
renovations that occurred during the fourth quarter.
"As a result of the capital reinvestment programs that occurred at
several of our properties, portfolio-wide RevPAR growth was tempered during
the quarter, as previously forecasted," advised Mr. Bortz. "Although this had
a meaningful impact on our performance in the seasonally weak fourth quarter,
we believe the property enhancements we're making will result in improved room
rates and consequently increased cash flow in 2005 and beyond."
During the fourth quarter, the Company's hotel EBITDA margins
declined 207 bps from the prior year quarter to 20.5 percent. EBITDA margins
in the quarter were negatively impacted by continuing operating cost
pressures, such as rising labor costs, health benefits, insurance, property
taxes and energy, as well as from the Company's renovation programs.
5
LHO REPORTS 2004 RESULTS --
Subsequent Events
- -----------------
On January 6, 2005, the Company acquired the Hilton San Diego Gaslamp
Quarter for $85.0 million. The upscale full-service hotel opened in 2000 and
is located in the heart of the Gaslamp historic district in downtown San
Diego. Featuring 282 well-appointed guestrooms, the hotel is operated pursuant
to a Hilton franchise agreement, and managed by Davidson Hotel Company. The
hotel is located across the street from the San Diego Convention Center, two
blocks from PETCO Park, the new home of the San Diego Padres baseball team and
just three miles from San Diego International Airport.
On January 10, 2005, LaSalle acquired the Grafton on Sunset for $25.5
million. The Grafton is an upscale full-service hotel with 108 guestrooms and
suites. The Grafton is located in the heart of West Hollywood, adjacent to
Beverly Hills and just a short distance from Melrose Avenue, Century City,
Santa Monica, Marina Del Rey and downtown Los Angeles. The Grafton is managed
by Outrigger Lodging Services ("OLS"), which also manages the Company's Le
Montrose Suite Hotel.
On January 14, 2005, the Company announced its monthly dividend of
$0.08 per share of its common shares of beneficial interest for each of the
three months of January, February and March 2005. The January dividend was
paid on February 15, 2005 to common shareholders of record on January 31,
2005; the February dividend will be paid on March 15, 2005 to common
shareholders of record on February 28, 2005; and the March dividend will be
paid on April 15, 2005 to common shareholders of record on March 31, 2005.
This represents a x.x percent annualized yield based on the Company's closing
share price on February 23, 2005.
Following the acquisitions of the Hilton San Diego Gaslamp Quarter
and the Grafton on Sunset, as of January 13, 2005, the Company had total
outstanding debt of approximately $365.8 million, including its $13.9 million
portion of the joint venture debt related to the Chicago Marriott. The
Company's $300.0 million unsecured credit facility had approximately $78.4
million outstanding immediately following the acquisitions. Additionally, the
Company had approximately $10.5 million of unrestricted cash and cash
equivalents on its balance sheet at that time.
2005 Outlook
- ------------
"We believe 2005 will be an outstanding year for the hotel industry
and LaSalle," said Mr. Bortz. "Demand growth should continue to substantially
outpace supply growth. As a result, we expect to generate pricing power in
many markets where we own hotels. This should result in a meaningful
improvement in RevPAR and property level EBITDA. However, continued
above-inflationary increases in employee wages,
6
LHO REPORTS 2004 RESULTS --
benefits, insurance costs and energy will limit our ability to further improve
property-level margins beyond the 100 to 150 basis points increase we are
currently forecasting for 2005."
As a result of the Company's continued optimistic view of 2005, and
assuming no unexpected events negatively impacting the economy or travel
industry, the outlook the Company provided on January 6, 2005 remains
unchanged, except for an increase in capital expenditures, as follows:
Net Income/(Loss) $11.9 million - $14.9 million ($0.39 - $0.49 per diluted
share);
FFO $59.7 million - $62.7 million ($1.95 - $2.05 per diluted
share/unit); and
EBITDA $94.2 million - $97.2 million.
This 2005 outlook is based on the following major assumptions:
- Portfolio RevPAR growth of 7.5 percent to 9.5 percent over 2004;
- Portfolio hotel margins increasing 100 to 150 basis points over
2004;
- Positive impact of the Hilton Gaslamp and Chaminade acquisitions
(approximately 8% EBITDA yield on Gaslamp and 12% EBITDA yield on
Chaminade);
- Corporate general and administrative expenses of approximately
$9.2 million;
- Total capital investments of approximately $55.0 million, including
approximately $4.0 million related to Gaslamp and Chaminade;
- Income tax (benefit)/expense of ($1.0 million) to $0.2 million;
- Average weighted outstanding debt of approximately $380.0 million
(which includes LaSalle's $13.9 million portion of the joint
venture debt related to the Chicago Marriott) and,
- Average weighted fully diluted shares/units of 30.6 million.
LaSalle Hotel Properties is a leading multi-tenant, multi-operator
real estate investment trust, which owns interests in 21 upscale and luxury
full-service hotels, totaling approximately 6,700 guest rooms in 14 markets in
10 states and the District of Columbia. The Company focuses on investing in
upscale and luxury full-service hotels located in urban, resort and convention
markets. LaSalle Hotel Properties seeks to grow through strategic
relationships with premier internationally recognized hotel operating
companies, including Westin Hotels and Resorts, Sheraton Hotels & Resorts
Worldwide, Inc., Crestline Hotels and Resorts, Inc., Outrigger Lodging
Services, Noble House Hotels & Resorts, Hyatt Hotels Corporation, Benchmark
Hospitality, White Lodging Services Corporation, Sandcastle Resorts & Hotels,
Davidson Hotel Company, and the Kimpton Hotel & Restaurant Group, LLC.
Certain matters discussed in this press release may be deemed to be forward
looking statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Although LaSalle Hotel Properties believes the
expectations reflected in such forward looking statements are based
7
LHO REPORTS 2004 RESULTS --
on reasonable assumptions, it can give no assurance that its expectations will
be attained. Certain factors that could cause actual results to differ
materially from the Company's expectations are listed in the Company's Annual
Report on Form 10-K for the year ended December 31, 2004, and subsequent SEC
reports and filings. LaSalle assumes no obligation to update or supplement
forward-looking statements that become untrue because of subsequent events.
# # #
Additional Contacts:
--------------------
Hans Weger, Chief Financial Officer, LaSalle Hotel Properties - 301/941-1500
For additional information or to receive press releases via e-mail,
please visit our website at
www.lasallehotels.com
---------------------
8
LASALLE HOTEL PROPERTIES
Consolidated Statements of Operations
(Dollars in thousands, except per share data)
(Unaudited)
For the three months ended
December 31,
----------------------------------
2004 2003
--------------- ----------------
Revenues:
Hotel operating revenues:
Room revenue $ 36,638 $ 26,819
Food and beverage revenue 23,303 16,972
Other operating department revenue 5,855 4,982
--------------- ----------------
Total hotel operating revenues 65,796 48,773
Participating lease revenue 3,073 3,831
Other income 77 12
--------------- ----------------
Total revenues 68,946 52,616
--------------- ----------------
Expenses:
Hotel operating expenses:
Room 10,157 7,559
Food and beverage 16,332 11,792
Other direct 3,157 2,735
Other indirect 19,722 14,052
--------------- ----------------
Total hotel operating expenses 49,368 36,138
Depreciation and other amortization 10,233 8,180
Real estate taxes, personal property taxes and insurance 3,167 2,570
Ground rent 780 790
General and administrative 2,047 1,601
Amortization of deferred financing costs 611 667
Impairment of investment in hotel property - -
Contingent lease termination expenses - 10
Other expenses 42 224
--------------- ----------------
Total operating expenses 66,248 50,180
--------------- ----------------
Operating income 2,698 2,436
Interest income 138 132
Interest expense (3,172) (3,373)
--------------- ----------------
Loss before income tax benefit,
minority interest, equity in earnings of unconsolidated
entities and discontinued operations (336) (805)
Income tax benefit 2,700 2,748
--------------- ----------------
Income before minority interest, equity in earnings of
unconsolidated entities and discontinued operations 2,364 1,943
Minority interest in LaSalle Hotel Operating
Partnership, L.P. (34) (69)
--------------- ----------------
Income before equity in earnings of unconsolidated entities
and discontinued operations 2,330 1,874
Equity in earnings of unconsolidated entities 618 (4)
--------------- ----------------
Income before discontinued operations 2,948 1,870
Discontinued operations:
Loss from operations of property disposed of (132) (36)
Minority interest, net of tax 5 55
Income tax benefit 52 106
--------------- ----------------
Net income (loss) from discontinued operations (75) 125
Net income 2,873 1,995
Distributions to preferred shareholders (3,133) (3,133)
--------------- ----------------
Net loss applicable to common shareholders $ (260) $ (1,138)
=============== ================
Earnings per Common Share - Basic:
Loss applicable to common shareholders
before discontinued operations and after dividends
paid on unvested restricted shares $ (0.01) $ (0.06)
Discontinued operations - 0.01
--------------- ----------------
Net loss applicable to common shareholders after
dividends paid on unvested restricted shares $ (0.01) $ (0.05)
=============== ================
Earnings per Common Share - Diluted:
Loss applicable to common shareholders
before discontinued operations $ (0.01) $ (0.06)
Discontinued operations - 0.01
--------------- ----------------
Net loss applicable to common shareholders $ (0.01) $ (0.05)
=============== ================
Weighted average number common shares outstanding:
Basic 28,684,261 22,337,143
Diluted 29,266,357 22,945,864
LASALLE HOTEL PROPERTIES
FFO and EBITDA
(Dollars in thousands, except per share data)
(Unaudited)
For the three months ended
December 31,
----------------------------------
2004 2003
--------------- ----------------
Funds From Operations (FFO):
Net loss applicable to common shareholders $ (260) $ (1,138)
Depreciation 10,205 8,476
Equity in depreciation of joint venture 263 261
Amortization of deferred lease costs 12 12
Minority interest:
Minority interest in LaSalle Hotel Operating
Partnership, L.P. 34 69
Minority interest in discontinued operations (5) (55)
Net loss on sale of properties disposed of 7 134
--------------- ----------------
FFO $ 10,256 $ 7,759
=============== ================
Weighted average number of common shares
and units outstanding:
Basic 29,067,351 22,761,829
Diluted 29,649,447 23,370,580
Earnings Before Interest, Taxes,
Depreciation and Amortization (EBITDA):
Net loss applicable to common shareholders $ (260) $ (1,138)
Interest 3,172 3,387
Equity in interest expense of joint venture 182 149
Income tax benefit:
Income tax benefit (2,700) (2,748)
Income tax benefit from discontinued operations (52) (106)
Depreciation and other amortization 10,233 8,508
Equity in depreciation/amortization of joint venture 285 289
Amortization of deferred financing costs 611 668
Minority interest:
Minority interest in LaSalle Hotel Operating
Partnership, L.P. 34 69
Minority interest in discontinued operations (5) (55)
Distributions to preferred shareholders 3,133 3,133
--------------- ----------------
EBITDA $ 14,633 $ 12,156
=============== ================
LASALLE HOTEL PROPERTIES
Consolidated Statements of Operations
(Dollars in thousands, except per share data)
(Unaudited)
For the year ended
December 31,
----------------------------------
2004 2003
--------------- ----------------
Revenues:
Hotel operating revenues:
Room revenue $ 152,100 $,92,951
Food and beverage revenue 86,404 56,266
Other operating department revenue 23,291 16,941
------------- ----------------
Total hotel operating revenues 261,795 166,158
Participating lease revenue 18,635 21,284
Other income 187 919
------------- -----------------
Total revenues 280,617 188,361
------------- -----------------
Expenses:
Hotel operating expenses:
Room 38,912 25,069
Food and beverage 59,951 40,256
Other direct 13,349 9,371
Other indirect 74,486 48,389
------------- -----------------
Total hotel operating expenses 186,698 123,085
Depreciation and other amortization 38,933 31,665
Real estate taxes, personal property taxes and insurance 11,891 9,347
Ground rent 3,493 3,561
General and administrative 8,398 7,292
Amortization of deferred financing costs 2,268 2,399
Impairment of investment in hotel property - 2,453
Contingent lease termination expenses 850 10
Other expenses 632 251
------------- -----------------
Total operating expenses 253,163 180,063
------------- -----------------
Operating income 27,454 8,298
Interest income 361 353
Interest expense (13,081) (12,651)
------------- -----------------
Income (loss) before income tax benefit,
minority interest, equity in earnings of unconsolidated
entities and discontinued operations 14,734 (4,000)
Income tax benefit 3,507 5,605
------------- -----------------
Income before minority interest, equity in earnings of
unconsolidated entities and discontinued operations 18,241 1,605
Minority interest in LaSalle Hotel Operating
Partnership, L.P. (289) (40)
------------- -----------------
Income before equity in earnings of unconsolidated entities
and discontinued operations 17,952 1,565
Equity in earnings of unconsolidated entities 853 304
------------- -----------------
Income before discontinued operations 18,805 1,869
Discontinued operations:
Income from operations of property disposed of,
including gain on disposal of assets 4,614 37,714
Minority interest, net of tax (68) (779)
Income tax benefit (expense) (128) 37
------------- -----------------
Net income from discontinued operations 4,418 36,972
Net income 23,223 38,841
Distributions to preferred shareholders (12,532) (10,805)
------------- -----------------
Net income applicable to common shareholders $ 10,691 $ 28,036
============= =================
Earnings per Common Share - Basic:
Income (loss) applicable to common shareholders
before discontinued operations and after dividends
paid on unvested restricted shares $ 0.23 $ (0.46)
Discontinued operations 0.16 1.85
------------- -----------------
Net income applicable to common shareholders after
dividends paid on unvested restricted shares $ 0.39 $ 1.39
============= =================
Earnings per Common Share - Diluted:
Income (loss) applicable to common shareholders
before discontinued operations $ 0.23 $ (0.43)
Discontinued operations 0.16 1.80
------------- -----------------
Net income applicable to common shareholders $ 0.39 $ 1.37
============= =================
Weighted average number common shares outstanding:
Basic 26,740,506 20,030,723
Diluted 27,376,934 20,487,406
LASALLE HOTEL PROPERTIES
FFO and EBITDA
(Dollars in thousands, except per share data)
(Unaudited)
For the year ended
December 31,
----------------------------------
2004 2003
--------------- ----------------
Funds From Operations (FFO):
Net income applicable to common shareholders $ 10,691 $ 28,036
Depreciation 38,937 33,582
Equity in depreciation of joint venture 1,053 1,019
Amortization of deferred lease costs 46 50
Minority interest:
Minority interest in LaSalle Hotel Operating
Partnership, L.P. 289 40
Minority interest in discontinued operations 68 779
Net gain on sale of properties disposed of (2,636) (36,662)
------------- -----------------
FFO $ 48,448 $ 26,844
============= =================
Weighted average number of common shares
and units outstanding:
Basic 27,153,145 20,455,409
Diluted 27,789,574 20,912,092
Earnings Before Interest, Taxes,
Depreciation and Amortization (EBITDA):
Net income applicable to common shareholders $ 10,691 $ 28,036
Interest 13,081 14,331
Equity in interest expense of joint venture 573 590
Income tax (benefit) expense:
Income tax benefit (3,507) (5,605)
Income tax (benefit) expense from discontinued operations 128 (37)
Depreciation and other amortization 39,046 33,702
Equity in depreciation/amortization of joint venture 1,164 1,130
Amortization of deferred financing costs 2,268 3,511
Minority interest:
Minority interest in LaSalle Hotel Operating
Partnership, L.P. 289 40
Minority interest in discontinued operations 68 779
Distributions to preferred shareholders 12,532 10,805
------------- -----------------
EBITDA $ 76,333 $ 87,282
============= =================
LASALLE HOTEL PROPERTIES
Statistical Data for the Hotels
(Unaudited)
For the Three Months Ended For the Twelve Months Ended
December 31, December 31,
-------------------------- ---------------------------
2004 2003 2004 2003
TOTAL PORTFOLIO
Occupancy 62.7% 64.0% 67.9% 64.8%
Increase/(Decrease) (2.0%) 4.9%
ADR $150.10 $145.58 $152.31 $146.45
Increase/(Decrease) 3.1% 4.0%
REVPAR $94.13 $93.20 $103.49 $94.84
Increase/(Decrease) 1.0% 9.1%
Note: This schedule includes the operating data for all properties leased to
LHL, and to third parties as of December 31, 2004, including the Indianapolis
Marriott, Hilton Alexandria Old Town and Chaminade for the Company's period of
ownership, and the Company's 9.9% interest in The Chicago Marriott Downtown
joint venture. The Lansdowne Resort, Hotel George, Indianapolis Marriott,
Hilton Alexandria Old Town & Chaminade are shown in 2003 for their comparative
period of ownership in 2004.
LASALLE HOTEL PROPERTIES
Hotel Operational Data
Schedule of Property Level Results
(unaudited, dollars in thousands)
For the Three Months Ended For the Twelve Months Ended
December 31, December 31,
--------------------------- ----------------------------
2004 2003 2004 2003
Revenues
Room 47,303 46,519 185,829 169,811
Food & beverage 29,575 28,257 101,473 95,777
Other 6,597 7,055 27,059 26,977
------ ------ ------- -------
Total hotel sales 83,475 81,831 314,361 292,565
Expenses
Room 12,583 11,973 45,776 41,891
Food & beverage 20,589 19,867 69,883 66,139
Other direct 4,101 3,998 15,548 15,046
General & administrative 7,976 7,488 27,607 25,934
Sales & marketing 6,566 6,394 23,426 21,789
Management fees 3,066 3,043 10,297 9,774
POM 4,109 3,623 13,784 12,763
Energy 2,894 2,675 10,743 10,063
Fixed expenses 4,492 4,312 18,597 17,909
------ ------ ------- -------
Total hotel expenses 66,376 63,373 235,661 221,308
EBITDA 17,099 18,458 78,700 71,257
Note:
This schedule includes the operating data for all properties leased to LHL, and to third parties as
of December 31, 2004, including the Indianapolis Marriott, Hilton Alexandria Old Town and Chaminade
for the Company's period of ownership, and the Company's 9.9% interest in The Chicago Marriott
Downtown joint venture. The Lansdowne Resort, Hotel George, Indianapolis Marriott, Hilton Alexandria
Old Town & Chaminade are shown in 2003 for their comparative period of ownership in 2004.