LaSalle Hotel Properties: Top Pick, Average Risk
RBC Capital Markets has rated
LaSalle Hotel Properties top pick because of attractive positioning in urban markets. The REIT has a new price target of $30 per share and is still rated outperform with average risk. Group booking pace for 2010 is continuing to grow, and even though the pacing for 2011 is currently down, it is expected to increase in 2H10. LHO is also expected to remain aggressive on the acquisition front in the coming years.
| |
Q12010A |
Q22010A |
2010E |
2011E |
2012E |
| Reported FFO |
$0.02 |
$0.52 |
$1.34 |
$1.45 |
$2.16 |
| Operating FFO |
$0.05 |
$0.52 |
$1.38 |
$1.75 |
$2.20 |
| Occupancy |
61.9% |
79.1% |
72.5% |
74% |
74.5% |
| Total RevPAR |
$149.75m |
$227.06m |
$199.39m |
$215.63m |
$235.49m |
| NOI margin |
16.28% |
32.45% |
27.9% |
29.75% |
31.75% |
| Adjusted EBITDA |
$17.2m |
$56.4m |
$168.2m |
$200.7m |
$254.1m |
The Q22010 earnings call can be accessed here:
LaSalle Hotel Properties Disclosure: The analyst(s) responsible for preparing this research received compensaion that is based upon various factors. including total revenue of the member companies of RBC Capital Markets and its affiliates, a portion of which have been generated by investment banking activities of the member companis of RBC Capital Markets and its affiliates. RBC Capital Markets Corp. makes a market in the securities of LaSalle Hotel Properties and may act as principal with regard to sales or purchases of this security.