LaSalle Hotel Properties (NYSE: LHO) today announced preliminary
room revenue per available room (“RevPAR”) results for the quarter
and year ended December 31, 2015 and updated its outlook for
adjusted EBITDA. The Company’s updated outlook for 2015
follows:
Q4
Previous Q42015 Outlookas
of 10/22/15
Current Q4 2015Outlook as
of1/13/16 (1)
($'s in millions)
RevPAR 1% - 3%
Approx. Flat Adjusted
EBITDA $90.5 - $93.0
$89.0 - $90.0
FullYear
Previous FY2015 Outlookas
of 10/22/15
Current FY 2015Outlook as
of1/13/16 (1)
($'s in millions)
RevPAR 1.7% - 2.2% Approx.
1.4% Adjusted EBITDA
$387.5 - $390.0 $386.0 - $387.0
(1) In the Company's third quarter earnings press
release issued on 10/22/15, the Company estimated the financial
impact from union-led disruption at the Park Central New York and
WestHouse (collectively "PCNY/WH") to be 150 basis points of RevPAR
growth and $3.0 million of adjusted EBITDA for the fourth quarter
2015, which was contained entirely to October 2015. The Company now
estimates the union impact at PCNY/WH in the fourth quarter 2015
will be 110 basis points of RevPAR growth and $2.0 million of
adjusted EBITDA. Including the previously reported impact to the
third quarter 2015, the Company now estimates the union impact at
PCNY/WH for the full year 2015 will be 120 basis points of RevPAR
growth and $9.2 million of adjusted EBITDA.
RevPAR is estimated to be below the Company’s outlook provided
on October 22, 2015, due to weaker than anticipated hotel operating
performance during the fourth quarter. The softening of operating
fundamentals that the Company discussed on its second and third
quarter earnings conference calls has continued. Based on
preliminary results from Smith Travel Research for December, the
Company expects that the fourth quarter will represent the fifth
consecutive quarter of decelerating RevPAR for the hotel industry
in the United States.
The slowing RevPAR trend has created a lack of visibility in the
current environment. As a result, the Company does not intend to
provide a forward-looking outlook for 2016.
Earnings Call
The Company today also announced it will report financial
results for the fourth quarter 2015 on Thursday, February 18, 2016
after the market closes. The Company will conduct its quarterly
conference call on Friday, February 19, 2016 at 10:00 AM eastern
time.
To participate in the conference call, please follow the steps
listed below:
1. On February 19, 2016, dial (800)
474-8920 approximately ten minutes before the call begins (9:50
AM eastern time);
2. Tell the operator that you are calling for
LaSalle Hotel Properties’ Fourth Quarter 2015 Earnings
Conference Call;
3. State your full name and company
affiliation and you will be connected to the call.
A live webcast of the earnings conference call will also be
available through the Company’s website. To access, log on to
www.lasallehotels.com ten minutes prior to the call. A replay of
the conference call webcast will be archived and available online
through the Investor Relations section of the Company’s
website.
LaSalle Hotel Properties is a leading multi-operator real estate
investment trust. The Company owns 47 hotels and a mezzanine loan
secured by two hotels in Santa Monica, California. The properties
are upscale, full-service hotels, totaling more than 12,000 guest
rooms in 14 markets in 10 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 companies, including Westin
Hotels and Resorts, Hilton Hotels Corporation, Outrigger Lodging
Services, Noble House Hotels & Resorts, Hyatt Hotels
Corporation, Benchmark Hospitality, White Lodging Services
Corporation, Commune Hotels and Resorts, Davidson Hotel Company,
the Kimpton Hotel & Restaurant Group, LLC, Accor, Destination
Hotels & Resorts, HEI Hotels & Resorts, JRK Hotel Group,
Inc., Viceroy Hotel Group, Highgate Hotels and Access Hotels &
Resorts.
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" or similar expressions. Forward-looking statements in
this press release include, among others, statements about
operating fundamentals and the Company's outlook for RevPAR and
adjusted EBITDA. 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) the Company’s dependence on third-party managers of its
hotels, including its inability to implement strategic business
decisions directly, (ii) risks associated with the hotel industry,
including competition, increases in wages, energy costs and other
operating costs, actual or threatened terrorist attacks, downturns
in general and local economic conditions and cancellation of or
delays in the completion of anticipated demand generators, (iii)
the availability and terms of financing and capital and the general
volatility of securities markets, (iv) risks associated with the
real estate industry, including environmental contamination and
costs of complying with the Americans with Disabilities Act and
similar laws, (v) interest rate increases, (vi) the possible
failure of the Company to qualify 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 and (ix) 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.
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version on businesswire.com: http://www.businesswire.com/news/home/20160113005600/en/
LaSalle Hotel PropertiesBruce A. Riggins or Max D. Leinweber,
301-941-1500
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