EXHIBIT 99
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FOR IMMEDIATE RELEASE
Contact: Raymond Martz, Director of Finance/Investor Relations--
Bethesda +301/941-1516
LASALLE HOTEL PROPERTIES REPORTS
15 PERCENT INCREASE IN FUNDS FROM OPERATIONS IN THIRD QUARTER
RevPAR Increases 9.3 Percent
BETHESDA, MD, OCTOBER 30, 2000 -- LaSalle Hotel Properties
(NYSE: LHO) today reported funds from operations (FFO) of $16.1 million for
the third quarter 2000 versus $14.1 million for the third quarter 1999. On
a per diluted share/unit basis, FFO for the third quarter 2000 was $0.87
versus $0.76 for the third quarter 1999.
For the quarter ended September 30, 2000 versus the same period in
1999, room revenue per available room (RevPAR) rose 9.3 percent to $123.11.
The average daily rate (ADR) of $158.87 represented an 8.7 percent increase
over the prior year period while occupancy increased to 77.5 percent, a 0.5
percent increase over the third quarter of 1999. For the first nine months
of 2000 versus the same period in 1999, RevPAR increased 7.0 percent.
The Company's EBITDA increased 19.8 percent to $22.4 million for the
quarter ended September 30, 2000 compared to $18.7 million in the third
quarter 1999. Year-to-date through September 30, 2000, the Company's
EBITDA grew 15.2 percent over the prior year to $54.9 million. EBITDA is
defined as earnings before interest, taxes, depreciation, amortized
expenses and write-down of properties held for disposition.
"RevPAR growth for our hotel portfolio during the third quarter was
exceptional, exceeding our expectations," said Jon Bortz, President and
Chief Executive Officer of LaSalle Hotel Properties. "We attribute this
continuing strong growth to a number of factors, including our highly
focused strategy of owning luxury and upscale hotels in high barrier-to-
entry urban, resort and convention markets, the strong economy, moderating
hotel supply growth, and the substantial capital improvements we have made
at our hotels. For these reasons, our hotels were able to drive healthy
rate increases during the quarter and for the first nine months of the
year. We expect these trends to continue through the fourth quarter."
RevPAR growth was led by the Company's resort properties, with RevPAR
gains of greater than 13 percent during the quarter. Geographically, the
hotels located in the Northeast and California demonstrated the greatest
strength. The third quarter and year-to-date RevPAR increases
substantially exceeded both the industry average and inflation.
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LHO REPORTS 15 PERCENT INCREASE IN FFO IN THIRD QUARTER -- Add one
"Based on current room booking trends, the portfolio is performing in
line with our expectations of an 8 to 10 percent RevPAR increase for the
fourth quarter," continued Mr. Bortz. "However, due to our better than
expected third quarter results, we now anticipate an annual RevPAR increase
for our portfolio of between 7 and 8 percent for the year, up from our
previous expectations of 5 to 7 percent. As a result of indications that
the economy is showing signs of moderating to a more sustainable GDP growth
rate of 3 to 4 percent, we anticipate portfolio-wide RevPAR growth in the 3
to 5 percent range for 2001."
For the first nine months of 2000 versus 1999, FFO increased 7.0
percent to $37.9 million from $35.4 million. The Company's nine month
actual 2000 FFO of $2.04 per diluted share/unit represents a 6.3 percent
increase over the 1999 nine month FFO of $1.92 per diluted share/unit.
Participating lease revenues for the third quarter 2000 increased
11.0 percent over third quarter 1999 to $25.8 million. Net income for the
third quarter 2000 was $7.7 million, or $0.45 per diluted share, compared
to net income of $6.2 million, or $0.40 per diluted share for the third
quarter 1999.
At the end of the third quarter, LaSalle Hotel Properties had
outstanding debt of approximately $283.0 million, including its portion
(approximately $12.0 million) of the joint venture mortgage debt, with
approximately $110.0 million outstanding under its credit facility.
The Company remains on target to spend a total of approximately $33.0
million in 2000 for property repositioning and renovation projects and
other capital improvements, with approximately $27.0 million spent as of
the end of the third quarter. Combined with 1999 improvement projects,
capital expenditures of approximately $15,000 per guestroom will have been
invested in the Company's hotels by the end of this year. Properties
repositioned or renovated during 2000 include the 457-room luxury San Diego
Paradise Point Resort; the 237-room historic Hotel Viking; 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 Properties is a leading multi-tenant, multi-operator
real estate investment trust which owns 13 upscale and luxury full-service
hotels, totaling approximately 5,300 guest rooms in 13 markets in 11
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 and Resorts, Inc., 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 $21.5 billion of assets under management and
operating across more than 100 key markets on five continents.
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<PAGE>
LHO REPORTS 15 PERCENT INCREASE IN FFO IN THIRD QUARTER -- Add two
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(s) on Form
10-Q for the quarters ended March 31, 2000, and June 30, 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.
Contacts:
--------
Hans Weger, Chief Financial Officer,
LaSalle Hotel Properties -- +301/941-1516
For additional information, please visit our
web site at www.lasallehotels.com
# # #
<PAGE>
LASALLE HOTEL PROPERTIES
Statements of Income
(Dollar amounts in thousands, except share data)
For the three For the three
months ended months ended
September 30, September 30,
2000 1999
------------ -------------
Participating lease revenue. . . . $ 25,794 $ 23,234
Interest income. . . . . . . . . . 338 253
Other income . . . . . . . . . . . 458 89
----------- -----------
Total revenues . . . . . . . . 26,590 23,576
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Depreciation and
other amortization . . . . . . . 7,442 6,604
Real estate taxes, personal
property taxes and insurance . . 2,281 2,165
Ground rent. . . . . . . . . . . . 1,103 1,033
General and administrative . . . . 183 247
Interest . . . . . . . . . . . . . 5,671 4,372
Amortization of deferred
financing costs. . . . . . . . . 308 253
Advisory fees. . . . . . . . . . . 1,151 1,336
Minority interest. . . . . . . . . 716 1,249
Other expense. . . . . . . . . . . 3 118
----------- -----------
Total expenses and
minority interest. . . . . . 18,858 17,377
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Net income . . . . . . . . . . . . $ 7,732 $ 6,199
=========== ===========
SHARE DATA:
Net income per weighted average
common share outstanding:
-Basic . . . . . . . . . . . . . $ 0.46 $ 0.40
-Diluted . . . . . . . . . . . . $ 0.45 $ 0.40
Weighted average number of
common shares outstanding:
-Basic . . . . . . . . . . . . . 16,925,815 15,315,174
-Diluted . . . . . . . . . . . . 17,007,337 15,340,057
FUNDS FROM OPERATIONS (FFO):
Net income . . . . . . . . . . . . $ 7,732 $ 6,199
Depreciation . . . . . . . . . . . 7,440 6,602
Equity in depreciation of
Joint Venture. . . . . . . . . . 212 --
Minority interest. . . . . . . . . 716 1,249
----------- -----------
FFO. . . . . . . . . . . . . . $ 16,100 $ 14,050
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<PAGE>
LASALLE HOTEL PROPERTIES
Statements of Income - Continued
For the three For the three
months ended months ended
September 30, September 30,
2000 1999
------------ -------------
FFO per common share and unit:
-Basic . . . . . . . . . . . . . $ 0.87 $ 0.76
-Diluted . . . . . . . . . . . . $ 0.87 $ 0.76
Weighted average number of common
shares and units outstanding:
-Basic . . . . . . . . . . . . . 18,501,716 18,422,286
-Diluted . . . . . . . . . . . . 18,583,238 18,447,169
EBITDA:
Net income . . . . . . . . . . . . $ 7,732 $ 6,199
Interest . . . . . . . . . . . . . 5,671 4,372
Depreciation and amortization. . . 7,750 6,857
Equity in depreciation/
amortization of Joint Venture. . 226 --
Equity in interest expense of
Joint Venture. . . . . . . . . . 288 --
Minority interest. . . . . . . . . 716 1,249
----------- -----------
EBITDA . . . . . . . . . . . . $ 22,383 $ 18,677
=========== ===========
<PAGE>
LASALLE HOTEL PROPERTIES
Statements of Income
(Dollar amounts in thousands, except share data)
For the nine For the nine
months ended months ended
September 30, September 30,
2000 1999
------------ -------------
Participating lease revenue. . . . $ 64,522 $ 59,632
Interest income. . . . . . . . . . 910 716
Other income . . . . . . . . . . . 944 84
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Total revenues . . . . . . . . 66,376 60,432
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Depreciation and
other amortization . . . . . . . 21,676 18,562
Real estate taxes, personal
property taxes and insurance . . 6,615 6,118
Ground rent. . . . . . . . . . . . 2,611 2,545
General and administrative . . . . 717 949
Interest . . . . . . . . . . . . . 15,427 11,558
Amortization of deferred
financing costs. . . . . . . . . 826 733
Advisory fees. . . . . . . . . . . 2,874 3,034
Minority interest. . . . . . . . . 1,217 2,869
Other expense. . . . . . . . . . . 15 123
Writedown of asset held for sale . 1,266 --
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Total expenses and
minority interest. . . . . . 53,244 46,491
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Net income . . . . . . . . . . . . $ 13,132 $ 13,941
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SHARE DATA:
Net income per weighted average
common share outstanding:
-Basic . . . . . . . . . . . . . $ 0.78 $ 0.91
-Diluted . . . . . . . . . . . . $ 0.77 $ 0.91
Weighted average number of
common shares outstanding:
-Basic . . . . . . . . . . . . . 16,903,187 15,262,241
-Diluted . . . . . . . . . . . . 16,952,020 15,271,024
FUNDS FROM OPERATIONS (FFO):
Net income . . . . . . . . . . . . $ 13,132 $ 13,941
Depreciation . . . . . . . . . . . 21,669 18,557
Equity in depreciation of
Joint Venture. . . . . . . . . . 568 --
Gain (loss) on sale of property. . 1,266 --
Minority interest. . . . . . . . . 1,217 2,869
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FFO. . . . . . . . . . . . . . $ 37,852 $ 35,367
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<PAGE>
LASALLE HOTEL PROPERTIES
Statements of Income - Continued
For the nine For the nine
months ended months ended
September 30, September 30,
2000 1999
------------ -------------
FFO per common share and unit:
-Basic . . . . . . . . . . . . . $ 2.05 $ 1.92
-Diluted . . . . . . . . . . . . $ 2.04 $ 1.92
Weighted average number of common
shares and units outstanding:
-Basic . . . . . . . . . . . . . 18,477,628 18,418,821
-Diluted . . . . . . . . . . . . 18,526,461 18,427,604
EBITDA:
Net income . . . . . . . . . . . . $ 13,132 $ 13,941
Interest . . . . . . . . . . . . . 15,427 11,558
Depreciation and amortization. . . 22,502 19,295
Equity in depreciation/
amortization of Joint Venture. . 607 --
Equity in interest expense of
Joint Venture. . . . . . . . . . 751 --
Minority interest. . . . . . . . . 1,217 2,869
Writedown of asset held for sale . 1,266 --
----------- -----------
EBITDA . . . . . . . . . . . . $ 54,902 $ 47,663
=========== ===========
<PAGE>
<TABLE>
LASALLE HOTEL PROPERTIES
Statistical Data for the Hotels
<CAPTION>
FOR THE FOR THE
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
-------------------------- --------------------------
2000 1999 2000 1999
----------- ---------- ----------- ----------
<S> <C> <C> <C> <C>
COMPARABLE HOTELS (1)
Occupancy. . . . . . . . . . . . . . . . . . . . . 77.3% 77.0% 76.5% 76.3%
Increase . . . . . . . . . . . . . . . . . . . . 0.4% 0.3%
ADR. . . . . . . . . . . . . . . . . . . . . . . . $163.32 $149.70 $153.39 $143.68
Increase . . . . . . . . . . . . . . . . . . . . 9.1% 6.8%
REVPAR . . . . . . . . . . . . . . . . . . . . . . $126.20 $115.30 $117.34 $109.62
Increase . . . . . . . . . . . . . . . . . . . . 9.5% 7.0%
NON-COMPARABLE HOTELS (1)
Occupancy. . . . . . . . . . . . . . . . . . . . . 81.3% 78.1% 65.7% 64.6%
Increase . . . . . . . . . . . . . . . . . . . . 4.1% 1.7%
ADR. . . . . . . . . . . . . . . . . . . . . . . . $84.98 $84.93 $140.44 $133.89
Increase . . . . . . . . . . . . . . . . . . . . 0.1% 4.9%
REVPAR . . . . . . . . . . . . . . . . . . . . . . $69.07 $66.34 $92.26 $86.50
Increase . . . . . . . . . . . . . . . . . . . . 4.1% 6.7%
TOTAL PORTFOLIO
Occupancy. . . . . . . . . . . . . . . . . . . . . 77.5% 77.1% 74.2% 73.8%
Increase . . . . . . . . . . . . . . . . . . . . 0.5% 0.5%
ADR. . . . . . . . . . . . . . . . . . . . . . . . $158.87 $146.10 $150.94 $141.84
Increase . . . . . . . . . . . . . . . . . . . . 8.7% 6.4%
REVPAR . . . . . . . . . . . . . . . . . . . . . . $123.11 $112.62 $111.99 $104.68
Increase . . . . . . . . . . . . . . . . . . . . 9.3% 7.0%
<FN>
(1) Non-Comparable Hotels for:
Three months ended September 30 includes Key West.
Nine months ended September 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; and Key West in Quarter 3.
Comparable Hotels include all Hotels excluding those in Non-Comparable hotels.
</TABLE>
