LaSalle Hotel Properties Reports First Quarter Results
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LaSalle Hotel Properties Reports First Quarter Results
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Category: Worldwide - Industry economy
- Figures / Studies
This is a press release selected by our editorial committee and published online for free on 2010-04-22
LaSalle Hotel Properties (NYSE: LHO) today reported a net loss to common shareholders of $25.8 million, or ($0.40) per diluted share for the quarter ended March 31, 2010, compared to a net loss of $18.9 million, or ($0.46) per diluted share for the first quarter of 2009.
For the quarter ended March 31, 2010, the Company generated funds from operations (“FFO”) of $1.5 million versus $8.6 million for the first quarter of 2009. On a per diluted share basis, FFO for the quarter was $0.02, compared to $0.21 for the same period of 2009.
The Company’s earnings before interest, taxes, depreciation and amortization (“EBITDA”) for the first quarter of 2010 were $14.8 million as compared to $21.3 million for the first quarter of 2009.
Net loss, FFO and EBITDA for the first quarter of 2010 included $1.5 million of transaction costs related to the Company’s acquisition of the Sofitel Washington, DC Lafayette Square.
Room revenue per available room (“RevPAR”) in the first quarter of 2010 was $95.86, which was a decrease of 9.8 percent compared to the same period of 2009. Average daily rate (“ADR”) declined 11.1 percent from the first quarter of 2009 to $154.96, while occupancy increased 1.4 percent to 61.9 percent. Excluding the impact of the inauguration in 2009, RevPAR for the portfolio decreased 6.4 percent in the first quarter of 2010.
“While we continue to expect 2010 to be a challenging year, we are encouraged by the recent improvement in demand within the industry and our portfolio,” said Michael D. Barnello, President
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and Chief Executive Officer of LaSalle Hotel Properties. “Our hotels are experiencing steady increases in booking activity in both the group and transient segments.”
The Company’s hotels generated $19.2 million of EBITDA for the quarter ended March 31, 2010 compared with $26.1 million for the same period of 2009. Hotel revenues declined 8.7 percent while hotel expenses were reduced by 4.2 percent. As a result, the hotel EBITDA margin was 16.3 percent for the quarter ended March 31, 2010, which is a decline of 395 basis points compared to the same period last year.
As of March 31, 2010, the Company had total outstanding debt of $635.6 million and the Company had no outstanding balance on its senior unsecured credit facility. Total debt to trailing 12 month Corporate EBITDA (as defined by our senior unsecured credit facility) equaled 3.8 times as of March 31, 2010. For the quarter, the Company’s weighted average interest rate was 5.1 percent. As of March 31, 2010, based on the Company’s covenants under its senior unsecured credit facility, the Company’s EBITDA to interest coverage ratio was 4.4 times and its fixed charge coverage ratio was 2.1 times. At the end of the quarter, the Company had $18.9 million of cash and cash equivalents on its balance sheet and an aggregate of $462.0 million available on its credit facilities.
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