EXHIBIT 99
----------
FOR IMMEDIATE RELEASE
Contact: Eileen M. Sanaghan--Chicago +312/228-2774
LA SALLE HOTEL PROPERTIES REPORTS INCREASE
IN SECOND QUARTER FFO
Portfolio RevPAR Increases 7.5 Percent
BETHESDA, MD, July 31, 2000 -- LaSalle Hotel Properties (NYSE: LHO)
today reported funds from operations (FFO) of $12.8 million for the second
quarter 2000 versus $12.5 million for the second quarter 1999. On a per
share/unit basis (basic and diluted), second quarter 2000 FFO was $0.69
versus second quarter 1999 FFO of $0.68.
For the quarter ended June 30, 2000, room revenue per available room
(RevPAR) increased 7.5 percent to $111.55 compared to $103.72 in the second
quarter 1999, primarily due to a 7.2 percent increase in average daily rate
(ADR). Occupancy in the quarter also improved 0.2 percentage points. For
the non-comparable hotels which underwent renovations in the second quarter
of 1999 or 2000, RevPAR increased 11.9 percent as ADR increased 10.9
percent over the prior year.
The Company's EBITDA, which is defined as earnings before interest,
taxes, depreciation, amortized expenses and write-down of properties held
for disposition, increased 13.4 percent to $18.6 million for the quarter
ended June 30, 2000 compared to $16.4 million in the second quarter 1999.
Year-to-date through June 30, 2000, the Company's EBITDA grew 12.2 percent
over the prior year to $32.5 million.
"The second quarter operating results exceeded expectations," said
Jon Bortz, President and CEO of LaSalle Hotel Properties. "The overall
strength of the economy coupled with robust demand from group, business and
leisure travelers drove strong revenue growth at our hotels in the second
quarter."
Performance was led by our resort-oriented hotels, which achieved
RevPAR gains of 13.0 percent during the quarter. Additionally, the double-
digit RevPAR growth experienced by our properties that were recently
renovated or repositioned underscores the substantial benefits derived from
these improvement programs. We are continuing to reap superior returns
through the strategic reinvestment of capital in our hotels.
"Our booking trends have been brisk during the first half of 2000,"
added Mr. Bortz. "Although economists have been forecasting economic
growth to moderate during the second half of this year, the major capital
investments the Company made in 1999 and throughout 2000 should enable us
to achieve significant revenue gains during the second half of this year.
We continue to expect the second half of the year to be stronger than the
first half, notwithstanding the unexpected
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strength of the second quarter. As a result, we now anticipate a
portfolio-wide RevPAR increase of 5 to 7 percent for the year, which
significantly exceeds our prior estimates of 3 to 4 percent. With supply
growth moderating, and all segments of hotel demand expected to continue to
remain healthy, we are optimistic about our ability to continue to drive
room rate and RevPAR at our hotels."
Participating lease revenues for the second quarter 2000 increased
7.7 percent to $21.9 million over the prior year period. Net income for
the second quarter 2000 was $3.7 million, or $0.22 per share (basic and
diluted), compared to net income of $5.2 million, or $0.34 per share (basic
and diluted) for the second quarter 1999. Consistent with its philosophy
of divesting assets that do not fit into its long-term strategy, the
Company entered into a purchase and sale agreement for the disposition of
the Holiday Inn Visalia. Based upon the contract price, the book value of
the asset was reduced by $1.3 million.
During the second quarter, the Company completed its approximately
$9.5 million renovation and expansion of The Hotel Viking, a 237-room
resort hotel located in Newport, Rhode Island. Since the historic hotel's
grand re-opening in the second quarter, average daily room rates have
increased in excess of $30.00, or more than 25 percent as compared to the
second quarter of 1999. "The repositioning of The Hotel Viking from a
three-star to four-star resort has been extremely positive. We are excited
about the hotel's recent performance and outlook for the remainder of the
year and beyond," said Mr. Bortz.
During 2000, the Company anticipates spending approximately $33.0
million for property repositioning and renovation projects and other
capital improvements. Approximately $20.0 million had been spent through
the end of June, with the balance to be invested during the remainder of
the year. Combined with 1999 improvement projects, approximately $15,000
of capital expenditures per guestroom will be spent by year-end 2000
throughout the Company's portfolio. Properties repositioned or renovated
during 2000 include The Hotel Viking; the 462-room luxury San Diego
Paradise Point Resort; the 270-room luxury urban Harborside Hyatt in
Boston; and the 132-room luxury Le Montrose All-Suite Hotel in West
Hollywood, California.
LaSalle Hotel Operating Partnership, L.P. ("LHOP"), the partnership
of which LaSalle Hotel Properties owns 91.5%, has reached a preliminary
agreement with the shareholders of LaSalle Hotel Lessee, Inc., ("LHL"), to
acquire LHL for $500,000. LHL leases four of the Company's owned hotels,
including Marriott Seaview Resort, Marriott LaGuardia, Omaha Marriott and
Harborside Hyatt. This transaction is expected to be effective January 1,
2001. Once acquired, LHL will be a 100% owned subsidiary of LHOP as
provided for under the taxable-REIT subsidiary provisions. It is currently
anticipated that the full acquisition price for LHL will be expensed in
2001. On a per share/unit basis, this acquisition is expected to be $0.00
- $0.01 accretive in 2001, and $0.02 - $0.03 accretive each year
thereafter. All of LHOP's remaining owned hotels are, and are expected to
continue to be, leased directly to the current operators of those
respective hotels.
At the end of the second quarter, LaSalle Hotel Properties had total
outstanding debt of approximately $283.0 million, including its portion of
the joint venture secured debt. On July 27, LaSalle Hotel Properties
obtained three individual 10-year fixed-rate loans totaling $74.5 million
at a rate of 8.08 percent. The proceeds of these loans were used to reduce
LaSalle Hotel Properties' outstanding borrowings under its existing $235.0
million line of credit facility. With the closing of the fixed debt on
July 27, the outstanding balance on the line of credit was reduced to
approximately $113.0 million. Currently, the company's fixed rate debt
represents over 55 percent of the total outstanding debt.
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On July 14, LaSalle Hotel Properties announced an increase in its
second quarter 2000 dividend to $0.385 per share. The dividend is payable
on August 14, 2000 to the shareholders of record at the close of business
on July 28, 2000. Based on the stock's closing price on July 31, 2000, the
second quarter dividend represents an annualized dividend yield of 10.7
percent. The Company has raised its dividend every year since it went
public.
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 eleven states. LaSalle Hotel Properties is focused on investing
in upscale and luxury full-service hotels located 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 on
five continents.
For more information on LaSalle Hotel Properties,
please visit our website at www.lasallehotels.com
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 "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 quarter ended March 31, 2000, under "Certain Relationships and
Related Transactions" in the Company's proxy statement with respect to the
annual meeting of shareholders on May 17, 2000, under "Risk Factors" and
elsewhere in the Company's Registration Statement (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 -- 301/941-1500
Raymond Martz, Director of Finance/Investor Relations,
LaSalle Hotel Properties -- 301/941-1516
# # #
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LA SALLE HOTEL PROPERTIES
Statements of Income
(Dollar amounts in thousands, except share data)
For the three For the three
months ended months ended
June 30, 2000 June 30, 1999
------------- --------------
Participating lease revenue. . . . $ 21,851 $ 20,292
Interest income. . . . . . . . . . 281 222
Other income . . . . . . . . . . . 507 130
---------- ----------
Total revenues. . . . . . . . 22,639 20,644
Depreciation and other
amortization . . . . . . . . . . 7,262 6,216
Real estate and personal
property taxes, property and
casualty insurance . . . . . . . 2,381 1,956
Ground rent. . . . . . . . . . . . 923 861
General and administrative . . . . 241 347
Interest expense . . . . . . . . . 5,301 3,681
Amortization of deferred
financing costs. . . . . . . . . 259 239
Advisory fees. . . . . . . . . . . 954 1,037
Other expense. . . . . . . . . . . 8 5
Minority interest. . . . . . . . . 338 1,068
Write-down of property held for
sale . . . . . . . . . . . . . . 1,266 --
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Total expenses, minority
interest and write-down. . . 18,933 15,410
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Net income . . . . . . . . . . . . $ 3,706 $ 5,234
========== ==========
Share data:
Net income per weighted average
common share outstanding:
- Basic. . . . . . . . . . . . . $ 0.22 $ 0.34
- Diluted. . . . . . . . . . . . $ 0.22 $ 0.34
Weighted average number of
common shares outstanding:
- Basic. . . . . . . . . . . . . 16,901,514 15,240,563
- Diluted. . . . . . . . . . . . 16,972,049 15,260,923
Funds From Operations (FFO):
Net income. . . . . . . . . . . . $ 3,706 $ 5,234
Depreciation. . . . . . . . . . . 7,260 6,213
Equity in depreciation of
Joint Venture. . . . . . . . . . 206 --
Write-down of property
held for sale. . . . . . . . . . 1,266 --
Minority interest . . . . . . . . 338 1,068
---------- ----------
FFO. . . . . . . . . . . . . . $ 12,776 $ 12,515
========== ==========
FFO per common share and unit:
- Basic. . . . . . . . . . . . . $ 0.69 $ 0.68
- Diluted. . . . . . . . . . . . $ 0.69 $ 0.68
Weighted average number of
common shares and units
outstanding:
- Basic. . . . . . . . . . . . . 18,477,415 18,422,286
- Diluted. . . . . . . . . . . . 18,547,950 18,442,646
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LA SALLE HOTEL PROPERTIES
Statements of Income
(Dollar amounts in thousands, except share data)
For the six For the six
months ended months ended
June 30, 2000 June 30, 1999
------------- --------------
Participating lease revenue. . . . $ 38,728 $ 36,398
Interest income. . . . . . . . . . 571 463
Other income . . . . . . . . . . . 486 16
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Total revenues. . . . . . . . 39,785 36,877
Depreciation and other
amortization . . . . . . . . . . 14,233 11,958
Real estate and personal
property taxes, property and
casualty insurance . . . . . . . 4,334 3,953
Ground rent. . . . . . . . . . . . 1,509 1,512
General and administrative . . . . 534 702
Interest expense . . . . . . . . . 9,755 7,186
Amortization of deferred
financing costs. . . . . . . . . 518 480
Advisory fees. . . . . . . . . . . 1,723 1,698
Other expense. . . . . . . . . . . 12 26
Minority interest. . . . . . . . . 501 1,620
Write-down of property held for
sale . . . . . . . . . . . . . . 1,266 --
---------- ----------
Total expenses, minority
interest and write-down. . . 34,385 29,135
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Net income . . . . . . . . . . . . $ 5,400 $ 7,742
========== ==========
Share data:
Net income per weighted average
common share outstanding:
- Basic. . . . . . . . . . . . . $ 0.32 $ 0.51
- Diluted. . . . . . . . . . . . $ 0.32 $ 0.51
Weighted average number of
common shares outstanding:
- Basic. . . . . . . . . . . . . 16,891,746 15,235,337
- Diluted. . . . . . . . . . . . 16,923,669 15,236,143
Funds From Operations (FFO):
Net income. . . . . . . . . . . . $ 5,400 $ 7,742
Depreciation. . . . . . . . . . . 14,229 11,954
Equity in depreciation of
Joint Venture. . . . . . . . . . 356 --
Write-down of property
held for sale. . . . . . . . . . 1,266 --
Minority interest . . . . . . . . 501 1,620
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FFO. . . . . . . . . . . . . . $ 21,752 $ 21,316
========== ==========
FFO per common share and unit:
- Basic. . . . . . . . . . . . . $ 1.18 $ 1.16
- Diluted. . . . . . . . . . . . $ 1.18 $ 1.16
Weighted average number of
common shares and units
outstanding:
- Basic. . . . . . . . . . . . . 18,465,450 18,417,060
- Diluted. . . . . . . . . . . . 18,497,373 18,417,866
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LA SALLE HOTEL PROPERTIES
Statistical Data for the Hotels
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30 JUNE 30
-------------------------- --------------------------
2000 1999 2000 1999
----------- ---------- ----------- ----------
<S> <C> <C> <C> <C>
COMPARABLE HOTELS (1)
Occupancy. . . . . . . . . . . . . . . . . . . . . 75.4% 75.2% 74.4% 75.2%
Increase . . . . . . . . . . . . . . . . . . . . 0.2% -1.1%
ADR. . . . . . . . . . . . . . . . . . . . . . . . $143.96 $135.23 $141.31 $133.71
Increase . . . . . . . . . . . . . . . . . . . . 6.5% 5.7%
REVPAR . . . . . . . . . . . . . . . . . . . . . . $108.51 $101.72 $105.19 $100.59
Increase . . . . . . . . . . . . . . . . . . . . 6.7% 4.6%
NON-COMPARABLE HOTELS (1)
Occupancy. . . . . . . . . . . . . . . . . . . . . 76.4% 75.7% 64.2% 63.3%
Increase . . . . . . . . . . . . . . . . . . . . 0.9% 1.4%
ADR. . . . . . . . . . . . . . . . . . . . . . . . $168.31 $151.78 $147.11 $139.66
Increase . . . . . . . . . . . . . . . . . . . . 10.9% 5.3%
REVPAR . . . . . . . . . . . . . . . . . . . . . . $128.56 $114.92 $94.47 $88.42
Increase . . . . . . . . . . . . . . . . . . . . 11.9% 6.8%
TOTAL PORTFOLIO
Occupancy. . . . . . . . . . . . . . . . . . . . . 75.5% 75.3% 71.6% 71.9%
Increase. . . . . . . . . . . . . . . . . . . . . 0.3% -0.4%
ADR. . . . . . . . . . . . . . . . . . . . . . . . $147.70 $137.75 $142.76 $135.17
Increase . . . . . . . . . . . . . . . . . . . . 7.2% 5.6%
REVPAR . . . . . . . . . . . . . . . . . . . . . . $111.55 $103.72 $102.21 $97.20
Increase . . . . . . . . . . . . . . . . . . . . 7.5% 5.1%
<FN>
(1) Non-Comparable Hotels for:
Three months ended June 30 include Hotel Viking and San Diego Paradise Point.
Six months ended June 30 include LeMontrose, Hotel Viking, Harborside Hyatt, Radisson South,
Marriott Seaview, and San Diego Paradise Point in Quarter 1; Hotel Viking and San Diego
Paradise Point in Quarter 2.
Comparable Hotels include all Hotels excluding those in Non-Comparable hotels.
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