LaSalle Hotel Properties (NYSE:LHO)

CAPS Rating: 5 out of 5

The Company is a Maryland real estate investment trust organized to buy, own and lease primarily upscale and luxury full-service hotels located in convention, resort and major urban business markets.

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Member Avatar BaseBawl (< 20) Submitted: 9/18/2013 9:52:54 AM : Outperform Start Price: $27.63 LHO Score: +23.54

Expected 15% dividend growth over three years.

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Member Avatar srk85 (< 20) Submitted: 12/21/2008 3:05:20 PM : Underperform Start Price: $10.15 LHO Score: -156.06

Very poor value compared to other REITs.

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Member Avatar LarsAmes (54.19) Submitted: 3/13/2008 9:43:26 PM : Outperform Start Price: $24.56 LHO Score: +0.10

Hotel REITS will continue to be a solid investment. Out of all the real estate sectors, I think hotels are #1 right now. people are still traveling a lot and are staying in hotels. Occupancys overall are good and the average daily rate (ADR) keeps going up. There is also a lot of new development in the pipeline across the country. I think you can not go wrong with hotel REITS.

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Member Avatar dalefromvail (83.75) Submitted: 2/21/2008 11:28:55 PM : Outperform Start Price: $24.58 LHO Score: +4.60

Talk about no respect. Beaten down along with the whole REIT industry this hotel owner doesn't deserve the bad rap. Their real estate is not sub prime or residential. Nobody seems to care. They own 3-5 stars hotels under various flags. Their current dividend is paying 7% at todays stock price and the stock is down 40% off a growth curve that any investor should envy. Fool recommended this REIT before their stock got dragged down and dividends were at only 3.5%. Annual results and forecast came out today with 3% growth for 2008. Not exciting but not bad. Add this to your IRA and hope they increase the dividend another 24% again next year. Time to load up.

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Member Avatar NetscribeREIT (20.07) Submitted: 2/1/2007 6:40:46 AM : Outperform Start Price: $37.48 LHO Score: -46.04

LaSalle Hotel Properties (LHO) is a hotel REIT (real estate investment trust) that buys, owns and leases upscale and luxury full-service hotels primarily located in convention, resort and major urban business markets. The company’s portfolio consists of 30 hotels with approximately 8,700 suites/rooms located in 11 states as of Sept. 2006. The company generates around 60% of EBITDA from hotels properties located in five major markets viz. San Diego, Boston, Chicago, LA and NY.

The US lodging industry has rebounded after the downturn from 2000 to 2003 caused by 9/11 attacks that plummeted travel industry and left hotels half empty. Since then, the industry is witnessing higher occupancy rate led by recovery in travel industry and supply constraint. For 2006, industry occupancy increased by 0.5% to 63.4%, average room rate (ADR) increased 7% to $97.31 and revenue per available room (RevPar) gained 7.5% to $61.69.

Although, the industry room supply increased 0.6% in 2006, but demand (roomnights sold) gained by 1.1%, resulting into revenue increase of 8.1%. Lodging industry outlook looks bright as demand among all travelers remains high, and bookings for conferences and meetings continue to increase, translating into expected RevPar growth of 9.1% in 2007.

LHO’s organic growth strategy is focused on increasing revenues through continuous re-development of pipeline, whereas inorganic growth strategy is based on enhancing hotels portfolio. Endorsing the same, the company recently completed its five acquisitions of hotel properties in crowded markets.

For the first nine months ended Sep. 2006, LHO witnessed increase in RevPar by 10.7%, ADR by 9.5% and occupancy rate of 76%, way above the industry averages. Further, LHO’s underlevered balance sheet endows it with adequate opportunity to go on for acquisition spree. Given the acquisition led growth strategy; brighter industry outlook, higher RevPar, ADR and occupancy rate, LaSalle is all set to deliver robust performance in 2007.

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Member Avatar antigenics1 (80.00) Submitted: 10/13/2006 10:08:53 AM : Outperform Start Price: $31.96 LHO Score: -36.59

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