LaSalle Hotel Properties (NYSE:LHO) today provided its outlook for 2006. The Company's outlook for 2006, assuming a continually improving economy, travel trends and the impact of the expected Le Parc Suite Hotel acquisition in January 2006, is as follows:
Net Income / (Loss) $33.4 million - $37.0 million
($0.92 - $1.02 per diluted share);
FFO $91.3 million - $94.9 million
($2.50 - $2.60 per diluted share/unit); and
EBITDA $151.5 million - $155.1 million.
This 2006 outlook is based on the following major assumptions:
-- Portfolio RevPAR growth of 7.5 to 9.5 percent over 2005;
-- Portfolio hotel EBITDA margins increasing 100 to 150 basis points over 2005;
-- Corporate general and administrative expenses of approximately $12.0 million;
-- Total capital investments of approximately $70.0 million to $75.0 million, including $21 million related to repositioning of the recently acquired former Holiday Inn Downtown Hotel on Thomas Circle in Washington, DC;
-- Income tax (benefit) / expense of ($0.5 million) to $1.0 million;
-- Average weighted outstanding debt of approximately $662.0 million (which includes LaSalle's $14.4 million portion of the joint venture debt related to the Chicago Marriott); and
-- Average weighted fully diluted shares/units of 36.5 million.
The quarterly summary of the 2006 outlook is as follows:
FFO per Share/Unit EBITDA (in millions)
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1st Quarter $0.18 - $0.21 $18.6 - $19.7
2nd Quarter $0.86 - $0.89 $49.5 - $50.6
3rd Quarter $0.91 - $0.93 $50.1 - $50.8
4th Quarter $0.55 - $0.57 $33.3 - $34.0
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Full Year 2006 $2.50 - $2.60 $151.5 - $155.1
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