LaSalle Hotel Properties (NYSE:LHO) today declared a monthly dividend of
$0.085 per common share of beneficial interest for each of the months of
October, November and December 2008. The October dividend will be paid
on November 14, 2008 to common shareholders of record on November 3,
2008; the November dividend will be paid on December 15, 2008 to common
shareholders of record on November 28, 2008; and the December dividend
will be paid on January 15, 2009 to common shareholders of record on
December 31, 2008. This monthly dividend results in an annualized rate
of $1.02 per common share which is a reduction from the prior declared
dividend’s annualized rate of $2.10 per common
share. The $1.02 per common share annualized rate represents a 9.1
percent yield based on today’s closing share
price.
"The Board of Trustees took this action to
reduce the dividend based on the recommendation of management, the
current challenging economic environment and the view that the U.S.
economy, as well as the lodging industry, will likely continue to face
declining economic trends through 2009,” said
Hans Weger, Chief Financial Officer. "This
reduction will further strengthen the balance sheet, provide over $100
million of additional liquidity over the next 26 months and position the
Company to take advantage of future investment opportunities.”
Given sluggish operating fundamentals since the fourth quarter of 2007,
combined with the current rapidly deteriorating economic environment and
the expectation that the lodging industry will face a challenging
operating environment through at least 2009, the Company has also taken
the following additional steps to further strengthen its balance sheet
and liquidity:
-
Limit capital investments at the hotels in 2009 to those related to
life safety, emergency capital maintenance and a few minor projects
that are currently underway;
-
Modified the fast-track schedule for the IBM Building conversion in
Chicago to a normal development schedule with major construction
commencing in 2010 and the super-luxury hotel opening in 2011; and
-
Continue to work aggressively with our operators to improve
efficiencies, reduce costs and enhance revenues at our properties.
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 economy, industry fundamentals, 2009
capital investment plans, IBM building timeline, balance sheet and
liquidity. 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
