BETHESDA, MD— LaSalle Hotel Properties reported net income of $7.1 million, or $0.26 per diluted share, for the second quarter of 2004 as compared to net income of $32.2 million, or $1.70 per diluted share, for the prior year’s comparable period. For the quarter ended June 30, 2004, the company generated funds from operations (FFO) of $17.2 million versus $4.6 million for the prior year period. On a per diluted share/unit basis, FFO for the second quarter was $0.63 versus $0.24 a year ago. The company’s earnings before interest, taxes, depreciation and amortization (EBITDA) for 2004’s second quarter amounted to $26.0 million, down from $49.2 million during the prior year period. However, it was noted the company’s net income and EBITDA for the second quarter 2003 included a net $34.6 million gain related to the disposition of the New Orleans Grande Hotel and Holiday Inn Beachside Resort properties. Particularly noteworthy was the claim room revenue per available room (RevPAR) for the quarter ended June 30, 2004 increased 15.9% versus the same period in 2003, while the average daily rate (ADR) of $155.05 increased 6.4% from the prior year period, and occupancy improved 8.9% to 73.4%. It was pointed out these RevPAR results include the recently acquired Hilton Alexandria Old Town for the month of June for the current year and prior year periods. “The second quarter operating results exceeded our expectations and the overall industry,” noted LaSalle Hotel Properties Chairman/CEO Jon Bortz. “The quarter’s strong performance was led by our business-oriented hotels, which achieved exceptional RevPAR gains of 27.7%.” Bortz added: “The advancing economic recovery resulted in a dramatic improvement in business travel demand, especially in urban markets such as Washington, DC, New York, and Boston.”
