Barron's article Makes Comments on LaSalle Hotel Properties (LHO); Shares May Still Have Room To Run

September 28, 2009 10:54 AM EDT

Barron's article makes comments on LaSalle Hotel Properties (NYSE: LHO).

Some Positive Points Include:

1) LaSalle Hotel's 360% run up since March has investors watching for cues to cash out. But an extended stay could prove rewarding.

2) LaSalle owns 31 hotels in North America and earns more than two-thirds from Washington, D.C.; Boston, Chicago and San Diego...the capital's hotels also were fuller than most through this recession.

3) Citi analyst says, LaSalle has "the best balance sheet" among lodging REITs.

4) Net debt is just 3.5 times 2010 EBITDA (or earnings before interest, taxes, depreciation and amortization), compared to 7 times for its peers.

5) Citi analyst sees shares trading up to $22 range.


Some Negative Points Include:

1) LaSalle's large rebound came at a time when consumer stocks were priced for depression and even extinction. But it's still down roughly 28% over the past year, compared to declines of just 4% for hotels and 24% for specialized REITs.

LaSalle Hotel Properties, a real estate investment trust (REIT), engages in the purchase, ownership, redevelopment, and leasing of primarily upscale and luxury full-service hotels in convention, resort, and urban business markets in the United States.

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