LaSalle Hotel Properties has reported a net loss to common shareholders of US$14.8m for the first quarter, compared to net income of US$15.7m for the same period last year.
The company’s earnings for the first quarter, before interest, taxes, depreciation and amortization, was US$24.5m, compared to US$58.8m for the same period of 2007, although 2007’s result included the US$30.3m net gain on the sale of the LaGuardia Marriott.
Room revenue per available room (revPAR) decreased one percent and occupancy declined 2.4 percent to 64.6 percent.
LaSalle says the decline in revPAR was anticipated and was primarily caused by the negative impact related to the disruption associated with the company’s numerous redevelopments, repositionings and renovation projects as well as the early Easter holiday.
LaSalle Hotel Properties Chairman and Chief Executive Jon Bortz says the lodging industry managed to maintain pricing power and modest growth in revPAR, despite weakening economic conditions.
“With our major renovations and repositionings materially complete, we continue to anticipate faring better than the industry for the remainder of 2008,” he says.
By Elizabeth Clifford-Marsh