UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): October 25, 1999
LASALLE HOTEL PROPERTIES
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(Exact name of registrant as specified in its charter)
Maryland 1-14045 36-4219376
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(State or other juris- (Commission File Number) (IRS Employer
diction of incorporation Identification
or organization) No.)
1401 Eye Street, NW, Suite 900, Washington, D.C. 20005
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(Address of principal executive office) (Zip Code)
Registrant's telephone number, including area code 202/222-2600
Not Applicable
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(Former name or former address, if changed since last report)
<PAGE>
ITEM 5. OTHER EVENTS
On October 25, 1999, LaSalle Hotel Properties issued a press release
announcing its results for the quarter and nine months ended September 30,
1999. A copy of the press release is filed as an exhibit to this report and
is incorporated by reference herein.
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM
ACT OF 1995: Certain statements in this filing and elsewhere (such as in
other filings by the Company with the Securities and Exchange Commission,
press releases, presentations and communications by the Company or its
management and written and oral statements) constitute "forward-looking
statements" within the meaning of the Private Securities Litigation Reform
Act of 1995. Such forward-looking statements involve known and unknown
risks, uncertainties and other factors which may cause the actual results,
performance, achievements, plans and objectives of the Company to be
materially different from any future results, performance, achievements,
plans and objectives expressed or implied by such forward-looking
statements. Such factors are discussed under "Business", Management's
Discussion and Analysis of Financial Condition and Results of Operations",
"Quantitative and Qualitative Disclosure about Market Risk" and elsewhere
in the Company's annual report on Form 10-K for the year ended December 31,
1998, under "Management's Discussion and Analysis of Financial Condition
and Results of Operations", "Quantitative and Qualitative Disclosure About
Market Risk" and elsewhere in the Company's quarterly report on form 10-Q
for the quarters ended March 31, 1999 and June 30, 1999, under "Certain
Relationships and Related Transactions" and elsewhere in the Company's
proxy statement with respect to the annual meeting of shareholders held on
May 19, 1999, under "Risk Factors" and elsewhere in the Company's
Registration Statement (No. 333-77371), and in other reports filed by the
Company with the Securities and Exchange Commission. The Company expressly
disclaims any obligation or undertaking to update or revise any
forward-looking statements to reflect any change in events or circumstances
or in the Company's expectations.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
The following exhibit is included with this Report:
Exhibit 99 Press release dated October 25, 1999 issued by LaSalle
Hotel Properties.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
as amended, the Registrant has duly caused this report to be signed on its
behalf by the undersigned hereunto duly authorized.
LASALLE HOTEL PROPERTIES
Dated: October 27, 1999 BY: /s/ HANS WEGER
------------------------------
Hans Weger
Executive Vice President,
Treasurer and Chief
Financial Officer
(Authorized Officer and
Principal Financial and
Accounting Officer)
<PAGE>
EXHIBIT INDEX
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Exhibit
Number Description
- ------- -----------
99 Press release dated October 25, 1999 issued by LaSalle
Hotel Properties.
Exhibit 99
- ----------
FOR IMMEDIATE RELEASE
Contact: Eileen M. Sanaghan--Chicago 312 228 2774
LA SALLE HOTEL PROPERTIES REPORTS 18 PERCENT INCREASE
IN FUNDS FROM OPERATIONS IN THIRD QUARTER
RevPAR Increases 11.5 Percent
WASHINGTON, D.C., October 25, 1999--LaSalle Hotel Properties (NYSE:
LHO) today reported funds from operations (FFO) of $14.1 million for the
third quarter 1999 versus FFO of $11.9 million for the third quarter 1998.
On a per share/unit basis, the third quarter 1999 FFO was $0.76 per diluted
share/unit versus third quarter 1998 FFO of $0.65 per diluted share/unit.
For the quarter ended September 30, 1999 versus the same period in
1998, room revenue per available room (RevPAR) on a comparable hotel basis
rose 11.5 percent to $123.48. The average daily rate (ADR) of $153.21 for
comparable hotels represented a 10.8 percent increase over the prior year
period while comparable hotel average occupancy increased to 80.6 percent,
a 0.7 percent increase over the third quarter of 1998. For the first nine
months of 1999 versus the same period in 1998, RevPAR on a comparable hotel
basis increased a strong 7.3 percent. For the total portfolio, RevPAR in
the third quarter 1999 increased 10.8 percent.
"RevPAR growth for our hotel portfolio significantly outperformed the
overall market. We attribute this strong growth to our strategic focus on
owning high quality hotels in high barrier to entry urban, resort and
convention markets, and our extensive internal reinvestment program," said
Jon Bortz, President and Chief Executive Officer of LaSalle Hotel
Properties. "Results were aided by strong demand in the leisure and group
business segments which more than offset the impact of Hurricane Floyd and
overall bad weather on the East coast during the quarter."
"Based on current room booking trends, we expect portfolio-wide
RevPAR to climb by three to five percent in the fourth quarter and to end
the year in the four to five percent range for portfolio-wide RevPAR
growth. For the year 2000, while we expect that overall industry
performance will continue to soften, we anticipate portfolio-wide RevPAR
growth in the three to four percent range," continued Mr. Bortz.
-- more --
<PAGE>
LHO REPORTS 18 PERCENT INCREASE IN THIRD QUARTER FFO - Add one
On an actual basis for the first nine months of 1999 versus pro forma
1998, FFO increased 13.9 percent to $35.4 million from $31.1 million. Nine
month actual 1999 FFO of $1.92 per diluted share/unit represents a $0.23 or
13.6 percent increase over the pro forma 1998 nine month FFO of $1.69 per
diluted share/unit.
Participating lease revenues for the third quarter 1999 increased
18.4 percent to $23.2 million over third quarter 1998. Net income for the
1999 third quarter was $6.2 million, or $0.40 per diluted share, compared
to net income of $5.3 million, or $0.35 per diluted share for the third
quarter 1998.
"We continue to reap the rewards of investing in our hotels through
extensive renovation programs. During 1998 and 1999, we will have spent
approximately $9,500 per guestroom renovating and repositioning our
hotels," said Mr. Bortz. "We also plan to invest an additional $25
million, or approximately $6,000 per guestroom in 2000, including two major
repositioning programs."
Phase two of the San Diego Paradise Point Resort
renovation/repositioning commenced in September and will include the
completion of the guestroom renovation, as well as the completion of a new
lobby, food and beverage facilities, and significantly enhanced landscaping
and resort grounds. The company has also accelerated the renovation of the
Hotel Viking, which will begin in November and result in the closing of the
hotel during the first quarter of 2000.
"After an extensive evaluation of the Viking repositioning project,
we determined that completing the renovation of all of the guestrooms and
public areas and the 36-room expansion prior to the prime 2000 season would
minimize displaced business," said Mr. Bortz. "We continue to be
encouraged by the strength of the Newport, Rhode Island resort market and
the opportunities offered by this recent acquisition."
During the fourth quarter, LaSalle Hotel Properties will also
complete the final phase of the Radisson Tampa renovation which began in
the third quarter, and begin the exterior renovation and guestroom
improvement program at Le Montrose, a 131-room luxury upscale hotel located
in West Hollywood, California.
Since the Company had no significant operations until after the
completion of its initial public offering on April 29, 1998, pro forma
operating results for the first nine months of 1998 are being presented as
if the Company had completed its initial public offering, acquired its
interest in its ten initial upscale and luxury full-service hotels, and
leased these hotels under participating leases as of January 1, 1998. The
pro forma results are based upon available information and certain
assumptions that management of the Company believes are reasonable.
-- more --
<PAGE>
LHO REPORTS 18 PERCENT INCREASE IN THIRD QUARTER FFO - Add two
The pro forma results are not necessarily indicative of what the
actual results of operations would have been for the nine month period
ended September 30, 1998, had the Company completed the initial public
offering and acquired and leased the initial ten upscale and luxury hotels
on the date indicated, nor does it purport to represent the future results
of operations of the Company.
LaSalle Hotel Properties is a leading multi-tenant, multi-operator
real estate investment trust which owns 13 upscale and luxury full-service
hotels, totaling approximately 4,300 guest rooms in 13 markets in ten
states. LaSalle Hotel Properties is focused on investing in upscale and
luxury full-service hotels located primarily in major business and urban,
resort and convention markets. The company seeks to grow through strategic
relationships with premier internationally recognized hotel operating
companies including Le Meridien Hotels & Resorts, Marriott International,
Inc., Radisson Hotels International, Inc., Durbin Companies, Outrigger
Lodging Services, Noble House Hotels & Resorts and Hyatt Hotels
Corporation.
The REIT serves as the exclusive vehicle for Jones Lang LaSalle's
hotel investment activities in the United States. Jones Lang LaSalle
(NYSE: JLL) is the world's leading real estate services and investment
management firm with more than $20.8 billion of assets under management and
operating across 97 key markets in 33 countries on five continents.
Statements in this press release regarding, among other things,
future financial results and performance, achievements, plans and
objectives may be considered forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. Such statements
involve known and unknown risks, uncertainties and other factors which may
cause actual results, performance, achievements, plans and objectives of
the Company to be materially different from those expressed or implied by
such forward-looking statements. Factors that could cause actual results
to differ materially include those discussed under "Business",
"Management's Discussion and Analysis of Financial Condition and Results of
Operations", "Quantitative and Qualitative Disclosure About Market Risk"
and elsewhere in the Company's annual report on Form 10-K for the year
ended December 31, 1998, under "Management's Discussion and Analysis of
Financial Condition and Results of Operations" and "Quantitative and
Qualitative Disclosure about Market Risk" and elsewhere in the Company's
quarterly report on Form 10-Q for the quarters ended March 31, 1999 and
June 30, 1999, under "Certain Relationships and Related Transactions" and
elsewhere in the Company's proxy statement with respect to the annual
meeting of shareholders held on May 19, 1999, and under "Risk Factors" and
elsewhere in the Company's Registration Statement (No. 333-77371) and in
other periodic reports filed with the Securities and Exchange Commission.
Statements speak only as of the date of this release. The Company
expressly disclaims any obligation or undertaking to update or revise any
forward-looking statements contained herein to reflect any change in
Company expectations or results, or any change in events.
ADDITIONAL CONTACTS:
Hans Weger, Chief Financial Officer, LaSalle Hotel Properties --
202/222-2600
Raymond Martz, Director of Finance/Investor Relations,
LaSalle Hotel Properties -- 202/222-2600
website: www.lasallehotels.com
# # #
<PAGE>
LA SALLE HOTEL PROPERTIES
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except share data)
For the For the
three months three months
ended ended
September 30, September 30,
1999 1998
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REVENUES:
Participating lease revenue . . . . $ 23,234 $ 19,617
Interest income . . . . . . . . . . 253 241
Other income. . . . . . . . . . . . 89 (38)
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Total Revenues . . . . . . . . . 23,576 19,820
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EXPENSES:
Depreciation and other
amortization . . . . . . . . . . . 6,604 5,470
Real estate taxes, personal
property taxes and insurance . . . 2,165 1,972
Ground rent . . . . . . . . . . . . 1,033 999
General and administrative. . . . . 247 194
Interest. . . . . . . . . . . . . . 4,372 3,709
Amortization of deferred financing
costs. . . . . . . . . . . . . . . 253 188
Advisory fees . . . . . . . . . . . 1,336 869
Minority interest . . . . . . . . . 1,249 1,116
Other expense . . . . . . . . . . . 118 --
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Total expenses and minority
interest . . . . . . . . . . . 17,377 14,517
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Net income . . . . . . . . . . . . . $ 6,199 $ 5,303
========== ==========
SHARE DATA:
Net income per weighted average
common share outstanding:
-Basic . . . . . . . . . . . . . . $ 0.40 $ 0.35
-Diluted . . . . . . . . . . . . . $ 0.40 $ 0.35
Weighted average number of
common shares outstanding:
-Basic . . . . . . . . . . . . . . 15,315,174 15,244,580
-Diluted . . . . . . . . . . . . . 15,340,057 15,244,580
FUNDS FROM OPERATIONS (FFO):
Net income. . . . . . . . . . . . . $ 6,199 $ 5,303
Depreciation. . . . . . . . . . . . 6,602 5,470
Minority interest . . . . . . . . . 1,249 1,116
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FFO. . . . . . . . . . . . . . . $ 14,050 $ 11,889
========== ==========
FFO per common share and unit:
-Basic . . . . . . . . . . . . . . $ 0.76 $ 0.65
-Diluted . . . . . . . . . . . . . $ 0.76 $ 0.65
Weighted average number of common
shares and units outstanding:
-Basic . . . . . . . . . . . . . . 18,422,286 18,406,303
-Diluted . . . . . . . . . . . . . 18,447,169 18,406,303
<PAGE>
LA SALLE HOTEL PROPERTIES
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except share data)
For the
For the pro forma
nine months nine months
ended ended
September 30, September 30,
1999 1998
------------- --------------
REVENUES:
Participating lease revenue . . . . $ 59,632 $ 47,258
Interest income . . . . . . . . . . 716 434
Other income. . . . . . . . . . . . 84 (51)
---------- ----------
Total Revenues . . . . . . . . . 60,432 47,641
---------- ----------
EXPENSES:
Depreciation and other
amortization . . . . . . . . . . . 18,562 12,597
Real estate taxes, personal
property taxes and insurance . . . 6,118 5,329
Ground rent . . . . . . . . . . . . 2,545 1,394
General and administrative. . . . . 949 539
Interest. . . . . . . . . . . . . . 11,558 6,546
Amortization of deferred financing
costs. . . . . . . . . . . . . . . 733 491
Advisory fees . . . . . . . . . . . 3,034 2,292
Minority interest . . . . . . . . . 2,869 3,207
Other expense . . . . . . . . . . . 123 --
---------- ----------
Total expenses and minority
interest . . . . . . . . . . . 46,491 32,395
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Net income . . . . . . . . . . . . . $ 13,941 $ 15,246
========== ==========
SHARE DATA:
Net income per weighted average
common share outstanding:
-Basic . . . . . . . . . . . . . . $ 0.91 $ 1.01
-Diluted . . . . . . . . . . . . . $ 0.91 $ 1.01
Weighted average number of
common shares outstanding:
-Basic . . . . . . . . . . . . . . 15,262,241 15,162,378
-Diluted . . . . . . . . . . . . . 15,271,024 15,162,378
FUNDS FROM OPERATIONS (FFO):
Net income. . . . . . . . . . . . . $ 13,941 $ 15,246
Depreciation. . . . . . . . . . . . 18,557 12,597
Minority interest . . . . . . . . . 2,869 3,207
---------- ----------
FFO. . . . . . . . . . . . . . . $ 35,367 $ 31,050
========== ==========
FFO per common share and unit:
-Basic . . . . . . . . . . . . . . $ 1.92 $ 1.69
-Diluted . . . . . . . . . . . . . $ 1.92 $ 1.69
Weighted average number of common
shares and units outstanding:
-Basic . . . . . . . . . . . . . . 18,418,821 18,344,101
-Diluted . . . . . . . . . . . . . 18,427,604 18,344,101
<PAGE>
LA SALLE HOTEL PROPERTIES
STATISTICAL DATA FOR THE HOTELS
For the three For the nine
months ended months ended
September 30, September 30,
----------------- -----------------
1999 1998 1999 1998
------- ------- ------- -------
COMPARABLE HOTELS (1)
Occupancy. . . . . . . . . . . . 80.6% 80.0% 77.9% 77.1%
Increase . . . . . . . . . . . 0.7% 1.0%
ADR. . . . . . . . . . . . . . . $153.21 $138.33 $141.68 $133.35
Increase . . . . . . . . . . . 10.8% 6.2%
REVPAR . . . . . . . . . . . . . $123.48 $110.70 $110.40 $102.85
Increase . . . . . . . . . . . 11.5% 7.3%
NON-COMPARABLE HOTELS (1)
Occupancy. . . . . . . . . . . . 65.1% 62.4% 62.9% 67.0%
Increase . . . . . . . . . . . 4.4% (6.2%)
ADR. . . . . . . . . . . . . . . $106.51 $103.40 $123.59 $119.15
Increase . . . . . . . . . . . 3.0% 3.7%
REVPAR . . . . . . . . . . . . . $69.36 $64.49 $77.70 $79.89
Increase . . . . . . . . . . . 7.5% (2.7%)
TOTAL PORTFOLIO
Occupancy. . . . . . . . . . . . 76.1% 74.8% 73.3% 74.0%
Increase . . . . . . . . . . . 1.6% (1.0%)
ADR. . . . . . . . . . . . . . . $141.47 $129.77 $136.89 $129.39
Increase . . . . . . . . . . . 9.0% 5.8%
REVPAR . . . . . . . . . . . . . $107.59 $97.12 $100.31 $95.77
Increase . . . . . . . . . . . 10.8% 4.7%
(1) Non-Comparable hotels for:
Three months ended September 30 include Le Meridien Dallas,
Radisson Tampa, and Radisson Convention Hotel.
Nine months ended September 30 include Marriott Seaview,
San Diego Paradise Point Resort, and Radisson Convention Hotel
in Quarters 1 and 2, and Le Meridien Dallas, Radisson Tampa,
and Radisson Convention Hotel in Quarter 3.
Comparable hotels include all Hotels excluding those in
Non-Comparable hotels.
