LaSalle Hotel Properties (NYSE:LHO) today declared a quarterly dividend
of $0.01 per common share of beneficial interest for the quarter ending
March 31, 2009. The first quarter dividend will be paid on April 15,
2009 to common shareholders of record on March 31, 2009. This is a
reduction of the dividend from $0.255 cents a quarter to $0.01 a
quarter. The Company previously paid dividends monthly. The Company
expects to pay a special dividend in January 2010, if necessary, to meet
REIT distribution requirements for 2009. Consistent with the Company's
historical dividend policy, the Board will continue to evaluate the
appropriate dividend payment on a quarterly basis.
"The Board of Trustee’s decision to reduce the dividend and ultimately
to pay the minimum required dividends for 2009 was made due to the lack
of clarity as to the length and depth of the current economic downturn
and the extremely challenging operating environment," said Hans Weger,
Chief Financial Officer. "This reduction in our dividend during these
uncertain times will strengthen our balance sheet, provide additional
liquidity, protect long-term shareholder value and position the Company
to take advantage of future opportunities, as the economy and operating
fundamentals recover."
LaSalle Hotel Properties is a leading multi-operator real estate
investment trust owning 31 upscale and luxury full-service hotels,
totaling approximately 8,500 guest rooms in 14 markets in 11 states and
the District of Columbia. The Company focuses on owning, redeveloping
and repositioning upscale and luxury 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, Sheraton Hotels & Resorts
Worldwide, Inc., Hilton Hotels Corporation, Outrigger Lodging Services,
Noble House Hotels & Resorts, Hyatt Hotels Corporation, Benchmark
Hospitality, White Lodging Services Corporation, Gemstone Hotels &
Resorts, LLC, Thompson Hotels, Sandcastle Resorts & Hotels, Davidson
Hotel Company, Denihan Hospitality Group and the Kimpton Hotel &
Restaurant Group, LLC.
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 "believe,"
"expect," "intend," "anticipate," "estimate," "project" or similar
expressions. Forward-looking statements in this press release include,
among others statements about the effect of the dividend reduction on
the Company’s balance sheet, its liquidity and its ability to act on
future opportunities.
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.
