LaSalle Hotel Reports Decline In Q3 Profit

10/21/2009 7:25 PM ET

(RTTNews) - Wednesday, real estate investment trust LaSalle Hotel Properties (LHO: News ) reported lower funds from operations and revenue for the third quarter, as revenue per available room and average daily rate declined. The company said 2009 continues to be an incredibly challenging year and that it expects the rest of the year to continue to be difficult.

The Bethesda, Maryland-based company's funds from operations for the third quarter declined to $30.7 million or $0.49 per share from $39.9 million or $0.99 per share a year ago.

On average, 12 analysts polled by Thomson Reuters estimated earnings of $0.44 per share for the quarter. Analysts' estimates typically exclude special items.

Net income available to common shareholders for the quarter plunged to $3.4 million or $0.05 per share from $12.5 million or $0.30 per share in the comparable quarter last year.

Total revenues for the quarter dropped to $162.71 million from $195.61 million in the comparable quarter last year.

Revenue per available room decreased 19.7% during the quarter to $132.82. Average daily rate declined 17.6% to $167.36, while occupancy fell 2.5% to 79.4% during the quarter.

For the nine-month period, the company reported net loss available to common shareholders of $7.2 million, compared to net income available to common shareholders of $18.2 million for the same period of 2008. FFO for the nine-month period was $74.9 million or $1.45 per share, compared to $97.1 million or $2.41 per share in the comparable period of 2008.

The company said it expects to pay preferred dividends of $26.4 million and preferred unit distributions of $0.4 million in 2009.

LHO closed Wednesday's regular trading at $19.65, down $0.63 or 3.11%, on a volume of 1.50 million shares on the New York Stock Exchange.