Lasalle Hotel Properties (LHO) Trims Q4, FY15 RevPAR Outlook

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January 13, 2016 8:37 AM EST

LaSalle Hotel Properties (NYSE: LHO) 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.


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