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): April 24, 2000
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.)
4800 Montgomery Lane, Suite M25, Bethesda, MD 20814
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(Address of principal executive office) (Zip Code)
Registrant's telephone number, including area code 301/941-1500
1401 Eye Street, NW, Suite 900, Washington, D.C. 20005
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(Former name or former address, if changed since last report)
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ITEM 5. OTHER EVENTS
On April 24, 2000, LaSalle Hotel Properties issued a press release
announcing its results for the quarter ended March 31, 2000. A copy of the
press release is filed as an exhibit to this report and is incorporated by
reference herein.
LaSalle Hotel Properties will host a conference call with investors on
Tuesday, April 25, at 1:00 p.m., Eastern Time. To participate in the call,
dial 719-457-2645 five minutes before the call begins (12:55 p.m. Eastern).
Inform the operator that you are calling in for LaSalle Hotel Properties'
first quarter 2000 earnings conference call.
Additionally, replays of the conference call will be available from
3:00 p.m., Eastern Time, on Tuesday, April 25 until 7:00 p.m., Eastern
time, on Thursday, April 27. To access the replay, please dial 719-457-
0820 and state your name, company affiliation and passcode 226700.
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,
1999, under "Certain Relationships and Related Transactions" and elsewhere
in the Company's proxy statement with respect to the annual meeting of
shareholders to be held on May 17, 2000, 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 April 24, 2000 issued by LaSalle
Hotel Properties.
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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: April 24, 2000 BY: /s/ HANS S. WEGER
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Hans S. Weger
Executive Vice President,
Treasurer and Chief
Financial Officer
(Authorized Officer and
Principal Financial and
Accounting Officer)
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EXHIBIT INDEX
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Exhibit
Number Description
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99 Press release dated April 24, 2000.
EXHIBIT 99
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FOR IMMEDIATE RELEASE
Contact: Eileen M. Sanaghan--Chicago +312/228-2774
LA SALLE HOTEL PROPERTIES REPORTS INCREASE IN FIRST QUARTER FFO
Portfolio RevPAR Advances 2.3 Percent
BETHESDA, MD, APRIL 24, 2000 -- LaSalle Hotel Properties (NYSE: LHO)
today reported funds from operations (FFO) of $9.0 million for the first
quarter 2000 versus FFO of $8.8 million for the first quarter 1999. On a
per share/unit basis, first quarter 2000 FFO was $0.49 versus first quarter
1999 FFO of $0.48.
For the quarter ended March 31, total portfolio room revenue per
available room (RevPAR) increased 2.3 percent to $92.42 compared to $90.33
in the first quarter 1999, due to a 3.6 percent increase in average daily
rate (ADR) which offset a 0.8 percentage point contraction in occupancy.
For the non-comparable hotels which were under renovation in the first
quarter of 1999 or 2000, RevPAR increased 4.0 percent as occupancy improved
1.0 percentage point and ADR increased 2.3 percent over the prior year.
Jon Bortz, President and CEO of LaSalle Hotel Properties, indicated
that the company was very pleased with its first quarter results. "During
the quarter, our hotels benefitted from their locations in high barrier-to-
entry resort, convention and urban markets as well as our renovation
activities during 1999. Hotel room demand improved in February from
January, and March was strong. We are seeing healthy room demand in 2000
with all segments participating, including group, commercial transient, and
leisure. Non-room revenues, including food and beverage, telephone,
recreation, and audio-visual, also delivered healthy increases over 1999's
first quarter, due primarily to favorable meeting business," said
Mr. Bortz.
"The major capital investments we made in 1999 and throughout 2000
should enable us to maximize the competitiveness of our hotels in the
future as we continue to drive rate and generate RevPAR growth. As a
result, we continue to forecast full-year RevPAR gains of 3 to 4 percent
for the portfolio," he added.
During the first quarter, LaSalle Hotel Properties achieved
significant milestones in the repositioning of two key assets and the
renovation of two additional hotels. The Hotel Viking, which commenced its
approximately $9 million renovation and expansion in November 1999, was
partially re-opened April 1st, with full completion expected by Memorial
Day.
"We are pleased with the results of the Hotel Viking's renovation and
expansion and believe that we have significantly upgraded and enhanced the
quality of the hotel by restoring its historic charm and appeal. The
combination of the strong Newport resort market and the newly upgraded and
expanded property should enable this hotel to rapidly increase its market
share and RevPAR," said Mr. Bortz. "The renovation included the addition
of 43 guestrooms as well as a complete guestroom and public area
renovation. The project was accelerated in order to benefit from the
demand associated with the prime tourist season, which commences Memorial
Day weekend."
<PAGE>
Additionally, LaSalle Hotel Properties made significant progress in
completing Phase Two of the three-year approximately $24 million renovation
and repositioning of the San Diego Paradise Point Resort. This included a
new lobby, renovation of the remaining 270 guestrooms, a new entryway and
resort signage, and significantly enhanced landscaping. Phase Two is
expected to be finished early in the second quarter. During the first
quarter, the Company also completed the full guestroom renovation of the
270-room luxury Harborside Hyatt in Boston as well as the guestsuite and
exterior renovation at Le Montrose, a 132-room all-suite luxury hotel in
West Hollywood, California.
This year, the Company anticipates spending approximately $30 million
for property repositioning and renovation projects. Combined with 1999
renovation projects, approximately $14,000 of capital expenditures per
guestroom will be spent by year-end 2000 throughout the Company's
portfolio.
Participating lease revenues for the first quarter increased 4.8
percent to $16.9 million over first quarter 1999. Net income for the first
quarter 2000 was $1.7 million, or $0.10 per share (basic and diluted),
compared to net income of $2.5 million, or $0.16 per share (basic and
diluted) last year. At the end of the first quarter, LaSalle Hotel
Properties had total outstanding debt, including its portion of the joint
venture secured debt, of approximately $276 million of which $178.4 million
was outstanding on the Company's $235 million line of credit.
On January 25, 2000, LaSalle Hotel Properties acquired the 1,176-room
Chicago Marriott Downtown in a joint venture with The Carlyle Group. The
Chicago Marriott Downtown is a full-service, upscale convention hotel
located on North Michigan Avenue, in the heart of Chicago's world-famous
"Magnificent Mile." This upscale convention hotel is LaSalle Hotel
Properties' fourth hotel acquisition since going public in April 1998.
Other acquired hotels include the San Diego Paradise Point Resort, a 462-
room upscale resort in San Diego; the Harborside Hyatt, a 270-room full
service luxury conference center in Boston; and the Hotel Viking, a 237-
room resort in Newport, Rhode Island.
LaSalle Hotel Properties declared its first quarter dividend of $0.38
per share on April 14, 2000. The dividend is payable on May 15, 2000 to
the shareholders of record at the close of business on April 28, 2000.
Based on the closing price on April 24th, the dividend on an annualized
basis represents a dividend yield of 10.9 percent.
LaSalle Hotel Properties is a leading multi-tenant, multi-operator
real estate investment trust which owns or has interests in 14 upscale and
luxury full-service hotels, totaling approximately 5,500 guest rooms in 14
markets in 11 states. LaSalle Hotel Properties is focused on investing in
upscale and luxury full-service hotels located primarily in 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., Crestline Hotels & Resorts,
Inc., Outrigger Lodging Services, Noble House Hotels & Resorts and Hyatt
Hotels Corporation.
LaSalle Hotel Properties 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 $21.5 billion of assets under
management and operating across more than 100 key markets in 32 countries
on five continents.
For more information on LaSalle Hotel Properties, please visit the
company's website at www.lasallehotels.com.
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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,
1999, UNDER "CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS" IN THE
COMPANY'S PROXY STATEMENT WITH RESPECT TO THE ANNUAL MEETING OF
SHAREHOLDERS TO BE HELD ON MAY 17, 2000, UNDER "RISK FACTORS" AND ELSEWHERE
IN THE COMPANY'S PROSPECTUS FILED AS PART OF ITS REGISTRATION STATEMENT
(333-45647) 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:
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Hans Weger, Chief Financial Officer, LaSalle Hotel Properties --
301/941-1516
Raymond Martz, Director of Finance/Investor Relations LaSalle
Hotel Properties -- 301/941-1516
website: www.lasallehotels.com
<PAGE>
LA SALLE HOTEL PROPERTIES
Statements of Income
(Dollar amounts in thousands, except share data)
For the three For the three
months ended months ended
March 31, March 31,
2000 1999
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Participating lease revenue . . . . . . $ 16,877 $ 16,106
Interest income . . . . . . . . . . . . 290 241
Other income. . . . . . . . . . . . . . (21) (114)
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Total revenues. . . . . . . . . . 17,146 16,233
Depreciation and other amortization . . 6,971 5,742
Real estate and personal property
taxes, property and casualty
insurance . . . . . . . . . . . . . . 1,953 1,997
Ground rent . . . . . . . . . . . . . . 586 651
General and administrative. . . . . . . 293 355
Interest expense. . . . . . . . . . . . 4,454 3,505
Amortization of deferred financing
costs . . . . . . . . . . . . . . . . 259 241
Advisory fees . . . . . . . . . . . . . 769 661
Minority interest . . . . . . . . . . . 163 552
Other expense . . . . . . . . . . . . . 4 21
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Total expenses and
minority interest . . . . . . . 15,452 13,725
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Net income. . . . . . . . . . . . . . . $ 1,694 $ 2,508
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SHARE DATA:
Net income per weighted average
common share outstanding:
- Basic. . . . . . . . . . . . . . $ 0.10 $ 0.16
- Diluted. . . . . . . . . . . . . $ 0.10 $ 0.16
Weighted average number of
common shares outstanding:
- Basic. . . . . . . . . . . . . . 16,881,979 15,230,052
- Diluted. . . . . . . . . . . . . 16,894,833 15,230,052
FUNDS FROM OPERATIONS (FFO):
Net income. . . . . . . . . . . . . . $ 1,694 $ 2,508
Depreciation. . . . . . . . . . . . . 6,969 5,741
Equity in depreciation of
Joint Venture . . . . . . . . . . . 150 --
Minority interest . . . . . . . . . . 163 552
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FFO . . . . . . . . . . . . . . . $ 8,976 $ 8,801
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FFO per common share and unit:
- Basic . . . . . . . . . . . . . . $ 0.49 $ 0.48
- Diluted . . . . . . . . . . . . . $ 0.49 $ 0.48
Weighted average number of common
shares and units outstanding:
- Basic . . . . . . . . . . . . . . 18,453,485 18,411,775
- Diluted . . . . . . . . . . . . . 18,466,339 18,411,775
<PAGE>
LA SALLE HOTEL PROPERTIES
Statistical Data for the Hotels
For the three For the three
months ended months ended
March 31, March 31,
2000 1999
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COMPARABLE HOTELS (1)
Occupancy . . . . . . . . . . . . . . . 73.0% 75.2%
Increase. . . . . . . . . . . . . . . (2.9%)
ADR . . . . . . . . . . . . . . . . . . $137.18 $131.40
Increase. . . . . . . . . . . . . . . 4.4%
REVPAR. . . . . . . . . . . . . . . . . $100.19 $98.87
Increase. . . . . . . . . . . . . . . 1.3%
NON-COMPARABLE HOTELS (1)
Occupancy . . . . . . . . . . . . . . . 59.5% 58.5%
Increase. . . . . . . . . . . . . . . 1.7%
ADR . . . . . . . . . . . . . . . . . . $136.60 $133.58
Increase. . . . . . . . . . . . . . . 2.3%
REVPAR. . . . . . . . . . . . . . . . . $81.29 $78.15
Increase. . . . . . . . . . . . . . . 4.0%
TOTAL PORTFOLIO
Occupancy . . . . . . . . . . . . . . . 67.5% 68.3%
Increase. . . . . . . . . . . . . . . (1.3%)
ADR . . . . . . . . . . . . . . . . . . $136.97 $132.17
Increase. . . . . . . . . . . . . . . 3.6%
REVPAR. . . . . . . . . . . . . . . . . $92.42 $90.33
Increase. . . . . . . . . . . . . . . 2.3%
(1) Non-Comparable Hotels for:
Three months ended March 31 include Le Montrose, Hotel Viking,
Harborside Hyatt, Radisson South, Marriott Seaview, and
San Diego Paradise Point Resort. Comparable Hotels include
all Hotels excluding those in Non-Comparable hotels.
