Strengthens Balance Sheet with $274 Million of
Asset Sales Year-to-Date
LaSalle Hotel Properties (NYSE: LHO) today announced results for
the quarter ended March 31, 2017. The Company’s results include the
following:
First Quarter
2017 2016 % Var. ($'s in millions except per
share/unit data) Net income attributable to common
shareholders(1) $ 76.1 $ 6.0 1,168.3% Net income attributable to
common shareholders per diluted share(1) $ 0.67 $ 0.05 1,240.0%
RevPAR(2) $ 177.56 $ 175.03 1.4% Hotel EBITDA
Margin(2) 27.5% 27.0% Hotel EBITDA Margin Growth(2)
50 bps
Total Revenues $ 254.4 $ 260.1 -2.2% EBITDA(1,2) $
135.6 $ 62.9 115.6% Adjusted EBITDA(2) $ 61.8 $ 65.0 -4.9% Note:
Adjusted EBITDA in the first quarter of 2016 includes $6.1 million
for assets that the Company sold in July 2016 and January 2017.
FFO(2) $ 49.0 $ 53.6 -8.6% Adjusted FFO(2) $ 51.3 $
55.6 -7.7% FFO per diluted share/unit(2) $ 0.43 $ 0.47 -8.5%
Adjusted FFO per diluted share/unit(2) $ 0.45 $ 0.49 -8.2%
(1) 2017 net income and EBITDA (as defined below) include $74.4
million of gains from the sales of the Hotel Deca, Lansdowne
Resort, and Alexis Hotel.
(2) See tables later in this press release, which list
adjustments that reconcile net income attributable to common
shareholders to earnings before interest, taxes, depreciation and
amortization (“EBITDA”), adjusted EBITDA, funds from operations
attributable to common shareholders and unitholders (“FFO”), FFO
per share/unit, adjusted FFO, adjusted FFO per share/unit and pro
forma hotel EBITDA. EBITDA, adjusted EBITDA, FFO, FFO per
share/unit, adjusted FFO, adjusted FFO per share/unit and hotel
EBITDA are non-GAAP financial measures. See further discussion of
these non-GAAP measures and reconciliations to net income later in
this press release. Room revenue per available room (“RevPAR”) is
presented on a pro forma basis to reflect hotels in the Company's
current portfolio. See “Statistical Data for the Hotels - Pro
Forma” later in this press release.
“We are proud that our teams continue to operate with excellent
efficiency across the portfolio, as evidenced by a decline in hotel
operating expenses during the first quarter,” said Michael D.
Barnello, President and Chief Executive Officer of LaSalle Hotel
Properties.
“We have been opportunistic in selling four hotels this year,
and we are pleased to use part of these proceeds to redeem our
Series H Preferred Shares,” added Mr. Barnello.
First Quarter Results
- Net Income: The Company’s net
income attributable to common shareholders was $76.1 million, which
increased 1,168.3% from the first quarter of 2016, due in part to
$74.4 million in combined gains relating to the sales of Hotel
Deca, Lansdowne Resort, and Alexis Hotel.
- RevPAR: The Company’s RevPAR
increased 1.4% to $177.56, driven by 1.2% growth in average daily
rate to $228.39 and a 0.2% gain in occupancy to 77.7%.
- Hotel EBITDA Margin: The
Company’s hotel EBITDA margin expanded by 50 basis points from the
comparable prior year period to 27.5%. The Company’s hotel expenses
declined by 1.1% from the first quarter of 2016.
- Adjusted EBITDA: The Company’s
adjusted EBITDA was $61.8 million, a decrease of $3.2 million from
the first quarter of 2016. First quarter 2016 adjusted EBITDA
included $6.1 million from three assets the Company sold in July
2016 and January 2017: Indianapolis Marriott Downtown, the
mezzanine loan on Shutters on the Beach and Casa Del Mar, and Hotel
Deca.
- Adjusted FFO: The Company
generated adjusted FFO of $51.3 million, or $0.45 per diluted
share/unit, compared to $55.6 million, or $0.49 per diluted
share/unit, for the comparable prior year period.
Disposition and Investment Activity
- Asset Sales: Year-to-date, the
Company completed four asset sales for $273.9 million, at an
average 6.5% trailing net operating income (“NOI”) capitalization
rate. The Company will use proceeds from the asset sales to redeem
the $68.8 million outstanding of 7.5% Series H Cumulative
Redeemable Preferred Shares (the “Series H Preferred Shares”) and
for general corporate purposes.
- In January 2017, the Company sold Hotel
Deca in Seattle, Washington for $55.0 million, which reflected a
6.7% trailing NOI capitalization rate. The Company acquired the
hotel in December 2005 for $26.4 million.
- In March 2017, the Company sold
Lansdowne Resort in Lansdowne, Virginia for $133.0 million, which
reflected a 6.8% trailing NOI capitalization rate. The Company
acquired the hotel in June 2003 for $115.8 million.
- Also in March 2017, the Company sold
Alexis Hotel in Seattle, Washington for $71.6 million, which
reflected a 5.6% trailing NOI capitalization rate. The Company
acquired the hotel in June 2006 for $38.0 million.
- In April 2017, the Company sold its
leasehold interest in Hotel Triton in San Francisco, California for
$14.25 million, which reflected a 7.8% trailing NOI capitalization
rate. The Company acquired the hotel in August 2013 for $10.9
million.
- Capital Investments: During the
quarter, the Company invested $12.6 million of capital in its
hotels. The Company completed room renovations at L’Auberge Del Mar
and Embassy Suites Philadelphia – Center City. As a result of the
asset sales, the Company is lowering its 2017 anticipated capital
expenditures to a range of $130.0 million to $150.0 million.
Previously, the Company anticipated investing between $130.0
million and $170.0 million of capital in its hotels during
2017.
Balance Sheet and Capital Markets Activities
- Balance Sheet Summary as of March
31, 2017: The Company had total outstanding debt of $1.1
billion, and total net debt to trailing 12 month Corporate EBITDA
(as defined in the financial covenant section of the Company’s
senior unsecured credit facility) was 2.9 times, which only
reflects $26.3 million of the full $361.4 million of cash and cash
equivalents on its balance sheet. The Company’s fixed charge
coverage ratio was 5.9 times, and its weighted average interest
rate for the first quarter was 2.7%. The Company had capacity of
$772.5 million available on its credit facilities.
- Credit Facility Refinancing: On
January 10, 2017, the Company refinanced $1.05 billion of debt,
reducing the interest cost on its $750.0 million revolver and
$300.0 million five-year term loan and extending their maturities
to January 2022 (including the exercise of extension options
pursuant to certain conditions).
- Share Repurchase Authorization:
In February 2017, the Company’s Board of Trustees authorized an
expanded share repurchase program to acquire up to an additional
$500.0 million of the Company’s common shares. Including the
previous authorization, the Company now has $569.8 million of
capacity remaining in its share repurchase program. The Board of
Trustees authorized the expanded program to increase the Company’s
flexibility to execute opportunistic repurchases when it believes
share buybacks are an accretive use of funds that will enhance
shareholder value. The program does not obligate the Company to
acquire any specific number of shares and, as a result, there is no
guarantee as to the number of shares that will be repurchased (if
any) or the timing of such repurchases. The Company did not acquire
any common shares during the first quarter of 2017 or to date
during the second quarter of 2017.
Dividend
On March 15, 2017, the Company declared a first quarter 2017
dividend of $0.45 per common share of beneficial interest. The
dividend represents an annual run rate of $1.80 per share and a
6.2% yield based on the closing share price on April 18, 2017.
Subsequent Event – Series H Preferred Shares Redemption
Announcement
On April 3, 2017, the Company provided notice to the holders of
its 7.5% Series H Preferred Shares of the redemption of all
2,750,000 of its issued and outstanding Series H Preferred Shares.
The cash redemption price for the Series H Preferred Shares is
$25.00 per share, plus accrued and unpaid dividends through the
redemption date. The redemption date will be May 4, 2017. After the
redemption date, dividends on the Series H Preferred Shares will
cease to accrue.
Earnings Call
The Company will conduct its quarterly conference call on
Thursday, April 20, 2017 at 11:00 AM eastern time. To participate
in the conference call, please dial (877) 604-9665.
Additionally, a live webcast of the conference call will be
available through the Company’s website. A replay of the conference
call webcast will also be archived and available online through the
Investor Relations section of the Company’s website.
About LaSalle Hotel Properties
LaSalle Hotel Properties is a leading multi-operator real estate
investment trust. The Company owns 42 properties, which are
upscale, full-service hotels, totaling approximately 10,700 guest
rooms in 11 markets in seven states and the District of Columbia.
The Company focuses on owning, redeveloping and repositioning
upscale, full-service hotels located in urban, resort and
convention markets. LaSalle Hotel Properties seeks to grow through
strategic relationships with premier lodging groups, including
Hilton Hotels Corporation, Marriott International, Outrigger
Lodging Services, Noble House Hotels & Resorts, Hyatt Hotels
Corporation, Benchmark Hospitality, Two Roads Hospitality, Davidson
Hotel Company, Kimpton Hotel & Restaurant Group, LLC, Accor,
HEI Hotels & Resorts, JRK Hotel Group, Inc., Viceroy Hotel
Group, Highgate Hotels, Access Hotels & Resorts, and Provenance
Hotels.
This press release, together with other statements and
information publicly disseminated by the Company, contains certain
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. The Company intends
such forward-looking statements to be covered by the safe harbor
provisions for forward-looking statements contained in the Private
Securities Litigation Reform Act of 1995 and includes this
statement for purposes of complying with these safe harbor
provisions. Forward-looking statements, which are based on certain
assumptions and describe the Company's future plans, strategies and
expectations, are generally identifiable by use of the words
“will,” "believe," "expect," "intend," "anticipate," "estimate,"
"project," “may,” “plan,” “seek,” “should,” or similar expressions.
Forward-looking statements in this press release include, among
others, statements about the Company’s asset management strategies,
use of sale proceeds and capital expenditure program. You should
not rely on forward-looking statements since they involve known and
unknown risks, uncertainties and other factors that are, in some
cases, beyond the Company's control and which could materially
affect actual results, performances or achievements. Factors that
may cause actual results to differ materially from current
expectations include, but are not limited to, (i) risks associated
with the hotel industry, including competition for guests and
meetings from other hotels and alternative lodging companies,
increases in wages, energy costs and other operating costs,
potential unionization or union disruption, actual or threatened
terrorist attacks, any type of flu or disease-related pandemic and
downturns in general and local economic conditions, (ii) the
availability and terms of financing and capital and the general
volatility of securities markets, (iii) the Company’s dependence on
third-party managers of its hotels, including its inability to
implement strategic business decisions directly, (iv) risks
associated with the real estate industry, including environmental
contamination and costs of complying with the Americans with
Disabilities Act of 1990, as amended, and similar laws, (v)
interest rate increases, (vi) the possible failure of the Company
to maintain its qualification as a REIT and the risk of changes in
laws affecting REITs, (vii) the possibility of uninsured losses,
(viii) risks associated with redevelopment and repositioning
projects, including delays and cost overruns, (ix) the risk of a
material failure, inadequacy, interruption or security failure of
the Company’s or the hotel managers’ information technology
networks and systems, and (x) the risk factors discussed in the
Company’s Annual Report on Form 10-K as updated in its Quarterly
Reports. Accordingly, there is no assurance that the Company's
expectations will be realized. Except as otherwise required by the
federal securities laws, the Company disclaims any obligation or
undertaking to publicly release any updates or revisions to any
forward-looking statement contained herein (or elsewhere) to
reflect any change in the Company’s expectations with regard
thereto or any change in events, conditions or circumstances on
which any such statement is based.
For additional information or to receive press releases via
e-mail, please visit our website at www.lasallehotels.com.
LASALLE HOTEL PROPERTIES
Consolidated Statements of Operations
and Comprehensive Income (Loss)
(in thousands, except share data)
(unaudited)
For the three months ended
March 31, 2017 2016
Revenues: Hotel operating revenues: Room $ 178,365 $ 181,420
Food and beverage 52,304 56,347 Other operating department
20,367 20,643 Total hotel operating revenues
251,036 258,410 Other income 3,369 1,694
Total revenues 254,405 260,104
Expenses: Hotel operating expenses: Room 52,323 52,291 Food
and beverage 39,148 42,908 Other direct 4,184 3,683 Other indirect
69,656 71,915 Total hotel operating
expenses 165,311 170,797 Depreciation and amortization 47,263
47,628 Real estate taxes, personal property taxes and insurance
16,115 16,191 Ground rent 3,385 3,813 General and administrative
6,554 5,830 Other expenses 1,918 2,178
Total operating expenses 240,546 246,437
Operating income 13,859 13,667 Interest income 142 1,654
Interest expense (9,827 ) (11,867 ) Loss from extinguishment of
debt (1,706 ) 0 Income before income tax
benefit 2,468 3,454 Income tax benefit 4,773
5,620 Income before gain on sale of properties 7,241 9,074
Gain on sale of properties 74,358 0 Net
income 81,599 9,074 Noncontrolling interests of common units in
Operating Partnership (110 ) (15 ) Net income
attributable to the Company 81,489 9,059 Distributions to preferred
shareholders (5,405 ) (3,042 ) Net income
attributable to common shareholders $ 76,084 $ 6,017
LASALLE HOTEL PROPERTIES
Consolidated Statements of Operations
and Comprehensive Income (Loss) - Continued
(in thousands, except share data)
(unaudited)
For the three months ended
March 31, 2017 2016 Earnings
per Common Share - Basic: Net income attributable to common
shareholders excluding amounts attributable to unvested restricted
shares $ 0.67 $ 0.05
Earnings per Common Share -
Diluted: Net income attributable to common shareholders
excluding amounts attributable to unvested restricted shares $ 0.67
$ 0.05
Weighted average number of common shares
outstanding: Basic 112,923,719 112,748,492 Diluted 113,306,209
113,108,158
Comprehensive Income (Loss): Net income $
81,599 $ 9,074 Other comprehensive income (loss): Unrealized gain
(loss) on interest rate derivative instruments 1,124 (14,252 )
Reclassification adjustment for amounts recognized in net income
985 1,780 83,708 (3,398 )
Noncontrolling interests of common units in Operating Partnership
(112 ) 1 Comprehensive income (loss)
attributable to the Company $ 83,596 $ (3,397 )
LASALLE HOTEL PROPERTIES
FFO and EBITDA
(in thousands, except share/unit data)
(unaudited)
For the three months ended
March 31, 2017 2016 Net income
attributable to common shareholders $ 76,084 $ 6,017 Depreciation
47,131 47,494 Amortization of deferred lease costs 79 80
Noncontrolling interests of common units in Operating Partnership
110 15 Less: Gain on sale of properties (74,358 ) 0
FFO attributable to common shareholders and
unitholders $ 49,046 $ 53,606
Pre-opening, management transition and severance expenses 82 1,546
Loss from extinguishment of debt 1,706 0 Non-cash ground rent
465 477
Adjusted FFO attributable to
common shareholders and unitholders $ 51,299
$ 55,629 Weighted average number of
common shares and units outstanding: Basic 113,068,942
112,893,715 Diluted 113,451,432 113,253,381
FFO attributable to
common shareholders and unitholders per diluted share/unit $
0.43 $ 0.47
Adjusted FFO attributable to common shareholders and
unitholders per diluted share/unit $ 0.45 $ 0.49
For the three months ended March 31,
2017 2016 Net income attributable to common
shareholders $ 76,084 $ 6,017 Interest expense 9,827 11,867 Loss
from extinguishment of debt 1,706 0 Income tax benefit (4,773 )
(5,620 ) Depreciation and amortization 47,263 47,628 Noncontrolling
interests of common units in Operating Partnership 110 15
Distributions to preferred shareholders 5,405
3,042
EBITDA $ 135,622 $
62,949 Pre-opening, management transition and severance
expenses 82 1,546 Gain on sale of properties (74,358 ) 0 Non-cash
ground rent 465 477
Adjusted
EBITDA $ 61,811 $ 64,972 Corporate
expense 8,632 6,724 Interest and other income (3,512 ) (3,349 ) Pro
forma hotel level adjustments, net(1) (1,831 ) (4,147
)
Hotel EBITDA $ 65,100 $
64,200
(1)
Pro forma excludes Mason & Rook Hotel for the period the
hotel was closed for renovation during the first quarter of 2016
and the comparable period in 2017. Pro forma excludes Hotel Deca,
Lansdowne Resort and Alexis Hotel due to their dispositions during
the first quarter of 2017 and Indianapolis Marriott Downtown due to
its disposition in July 2016.
LASALLE HOTEL PROPERTIES
Hotel Operational Data
Schedule of Property Level Results -
Pro Forma(1)
(in thousands)
(unaudited)
For the three months ended
March 31, 2017 2016
Revenues: Room $ 171,092 $ 170,447 Food and beverage 47,561
49,466 Other 18,126 17,947 Total hotel
revenues 236,779 237,860
Expenses: Room 50,350 50,153 Food and beverage 35,722 38,420
Other direct 2,514 2,458 General and administrative 18,615 18,579
Information and telecommunications systems 4,274 3,979 Sales and
marketing 18,493 18,253 Management fees 6,848 6,843 Property
operations and maintenance 9,173 8,951 Energy and utilities 6,500
6,333 Property taxes 13,862 13,548 Other fixed expenses(2)
5,328 6,143 Total hotel expenses
171,679 173,660
Hotel EBITDA
$ 65,100 $ 64,200
Hotel EBITDA Margin 27.5 % 27.0
%
(1)
This schedule includes the operating data for the three
months ended March 31, 2017 for all properties owned by the Company
as of March 31, 2017. Mason & Rook Hotel is excluded from the
first quarter in both 2016 and 2017 because the hotel was closed
for renovation during the entire first quarter of 2016. Pro forma
excludes the results of operations of Hotel Deca, Lansdowne Resort
and Alexis Hotel due to their dispositions during the first quarter
of 2017 and Indianapolis Marriott Downtown due to its disposition
in July 2016.
(2)
Other fixed expenses includes ground rent expense, but excludes
ground rent payments for The Roger, Harbor Court and Hotel Triton
in both periods due to the hotels being subject to capital leases
of land and building under GAAP. At The Roger, the base ground rent
payment was $99 for the three months ended March 31, 2017 and 2016.
At Harbor Court, the base and participating ground rent payment was
$288 for the three months ended March 31, 2017 and $333 for the
three months ended March 31, 2016. At Hotel Triton, the base and
participating ground rent payment was $456 for the three months
ended March 31, 2017 and $489 for the three months ended March 31,
2016.
LASALLE HOTEL PROPERTIES
Statistical Data for the Hotels - Pro
Forma(1)
(unaudited)
For the three months ended
March 31, 2017 2016 Total
Portfolio Occupancy 77.7 % 77.6 % Increase 0.2 % ADR $ 228.39 $
225.69 Increase 1.2 %
RevPAR $ 177.56 $
175.03 Increase 1.4 %
For the three months ended
March 31, 2017
Market Detail RevPAR Variance % Boston 4.0% Chicago
0.9% Key West (2.1)% Los Angeles (11.3)% New York (3.3)% Other(2)
4.1% Philadelphia (1.5)% San Diego Downtown 8.0% San Francisco
(4.5)% Washington, DC(3) 21.5%
(1)
Pro forma excludes Mason & Rook Hotel for the period the
hotel was closed for renovation during the first quarter of 2016
and the comparable period in 2017. Pro forma excludes Hotel Deca,
Lansdowne Resort and Alexis Hotel due to their dispositions during
the first quarter of 2017 and Indianapolis Marriott Downtown due to
its disposition in July 2016.
(2)
Other includes The Heathman Hotel in Portland, OR, Chaminade Resort
in Santa Cruz, CA, L’Auberge Del Mar in Del Mar, CA and The Hilton
San Diego Resort and Paradise Point Resort in San Diego, CA.
(3)
Mason & Rook Hotel is excluded due to the hotel’s closure and
renovation during the first quarter of 2016.
LASALLE HOTEL PROPERTIES
Statistical Data for the Hotels - Pro
Forma(1) - Continued
(in millions)
(unaudited)
Prior Year Operating Data (Excluding
Hotel Triton, Hotel Deca, Lansdowne Resort, Alexis Hotel and
Indianapolis Marriott Downtown) - 2016 Comparable
First Quarter Second Quarter Third
Quarter Fourth Quarter Full Year 2016
2016 2016 2016 2016 Occupancy 77.6 %
89.1 % 90.1 % 81.3 % 84.6 % ADR $ 225.60 $ 259.23 $ 252.99 $ 242.37
$ 245.89 RevPAR $ 175.04 $ 231.02 $ 228.01 $ 197.06 $ 207.94
Total hotel revenues $ 235.6 $ 312.9 $ 303.0 $ 270.0 $ 1,121.5
Less: Total hotel expenses 172.4 192.0
191.5 183.6 739.5 Hotel
EBITDA $ 63.2 $ 120.9 $ 111.5 $ 86.4 $
382.0 Hotel EBITDA Margin 26.8 % 38.6 % 36.8 % 32.0 %
34.1 %
(1)
Pro forma excludes the Mason & Rook Hotel during the
first quarter for comparable purposes, due to the hotel being
closed for renovation during the first quarter of 2016. Pro forma
excludes the results of operations of Hotel Triton due to its
disposition in April 2017, Hotel Deca, Lansdowne Resort and Alexis
Hotel due to their dispositions during the first quarter of 2017
and Indianapolis Marriott Downtown due to its disposition in July
2016.
Non-GAAP Financial Measures
FFO, EBITDA and Hotel EBITDA
The Company considers the non-GAAP measures of FFO (including
FFO per share/unit), EBITDA and hotel EBITDA to be key supplemental
measures of the Company’s performance and should be considered
along with, but not as alternatives to, net income or loss as a
measure of the Company’s operating performance. Historical cost
accounting for real estate assets implicitly assumes that the value
of real estate assets diminishes predictably over time. Since real
estate values instead have historically risen or fallen with market
conditions, most real estate industry investors consider FFO,
EBITDA and hotel EBITDA to be helpful in evaluating a real estate
company’s operations.
The White Paper on FFO approved by NAREIT in April 2002, as
revised in 2011, defines FFO as net income or loss (computed in
accordance with GAAP), excluding gains or losses from sales of
properties and items classified by GAAP as extraordinary, plus real
estate-related depreciation and amortization and impairment
writedowns, and after comparable adjustments for the Company’s
portion of these items related to unconsolidated entities and joint
ventures. The Company computes FFO consistent with standards
established by NAREIT, which may not be comparable to FFO reported
by other REITs that do not define the term in accordance with the
current NAREIT definition or that interpret the current NAREIT
definition differently than the Company.
With respect to FFO, the Company believes that excluding the
effect of extraordinary items, real estate-related depreciation and
amortization and impairments, and the portion of these items
related to unconsolidated entities, all of which are based on
historical cost accounting and which may be of limited significance
in evaluating current performance, can facilitate comparisons of
operating performance between periods and between REITs, even
though FFO does not represent an amount that accrues directly to
common shareholders. However, FFO may not be helpful when comparing
the Company to non-REITs.
With respect to EBITDA, the Company believes that excluding the
effect of non-operating expenses and non-cash charges, and the
portion of these items related to unconsolidated entities, all of
which are also based on historical cost accounting and may be of
limited significance in evaluating current performance, can help
eliminate the accounting effects of depreciation and amortization,
and financing decisions and facilitate comparisons of core
operating profitability between periods and between REITs, even
though EBITDA also does not represent an amount that accrues
directly to common shareholders.
With respect to hotel EBITDA, the Company believes that
excluding the effect of corporate-level expenses, non-cash items,
and the portion of these items related to unconsolidated entities,
provides a more complete understanding of the operating results
over which individual hotels and operators have direct control. The
Company believes property-level results provide investors with
supplemental information on the ongoing operational performance of
its hotels and effectiveness of the third-party management
companies operating its business on a property-level basis.
FFO, EBITDA and hotel EBITDA do not represent cash generated
from operating activities as determined by GAAP and should not be
considered as alternatives to net income or loss, cash flows from
operations or any other operating performance measure prescribed by
GAAP. FFO, EBITDA and hotel EBITDA are not measures of the
Company’s liquidity, nor are FFO, EBITDA and hotel EBITDA
indicative of funds available to fund the Company’s cash needs,
including its ability to make cash distributions. These
measurements do not reflect cash expenditures for long-term assets
and other items that have been and will be incurred. FFO, EBITDA
and hotel EBITDA may include funds that may not be available for
management’s discretionary use due to functional requirements to
conserve funds for capital expenditures, property acquisitions, and
other commitments and uncertainties. To compensate for this,
management considers the impact of these excluded items to the
extent they are material to operating decisions or the evaluation
of the Company’s operating performance.
Adjusted FFO and Adjusted EBITDA
The Company presents adjusted FFO (including adjusted FFO per
share/unit) and adjusted EBITDA, which adjusts for certain
additional items including gains on sale of property and impairment
losses (to the extent included in EBITDA), acquisition transaction
costs, costs associated with the departure of executive officers,
costs associated with the recognition of issuance costs related to
the calling of preferred shares and certain other items. The
Company excludes these items as it believes it allows for
meaningful comparisons with other REITs and between periods and is
more indicative of the ongoing performance of its assets. As with
FFO, EBITDA, and hotel EBITDA, the Company’s calculation of
adjusted FFO and adjusted EBITDA may be different from similar
adjusted measures calculated by other REITs.
Trailing NOI Capitalization Rate
The Company calculates the weighted average capitalization rate
by dividing the aggregate trailing 12-month net operating income of
the subject hotels by the aggregate sales prices for such
hotels. The Company defines net operating income as hotel
revenues (room and other hotel operating revenues) less hotel
expenses (hotel operating expenses, real estate and personal
property taxes, insurance, ground rent, FF&E reserve, and other
hotel expenses).
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version on businesswire.com: http://www.businesswire.com/news/home/20170419006572/en/
LaSalle Hotel PropertiesKenneth G. Fuller or Max D. Leinweber,
301-941-1500
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