LASALLE HOTEL PROPERTIES
INVESTOR PRESENTATION • PAGE 1 LASALLE HOTEL PROPERTIES LHO Basics
Hotel Solamar
Donovan House
Diversified high-quality portfolio within urban, resort and convention markets The Company owns 40 hotels and the mezzanine loans secured by two hotels in Santa Monica, CA Low leverage company focused on maintaining a conservative balance sheet Focused on long-term shareholder value $3.9B total enterprise value
INVESTOR PRESENTATION • PAGE 2 LASALLE HOTEL PROPERTIES Investment Highlights
Independent and brand diversification Heavy asset management focus with best-in-class EBITDA margins Acquisition strategy primarily focused on the top markets and the CBD within those markets Low-leverage capital structure Hilton San Diego Resort Most management contracts are terminable at will Mission of providing best returns while seeking to minimize risk each step along the investment path
Alexis Hotel
INVESTOR PRESENTATION • PAGE 3 LASALLE HOTEL PROPERTIES 2012 Highlights Acquired Hotel Palomar, Washington DC in March, and in December acquired L’Auberge Del Mar in Del Mar CA and The Liberty Hotel in Boston MA, for at total of $390.7MM Acquired Mezzanine Loan secured by Shutters on the Beach and Casa Del Mar Hotels in Santa Monica for $67.4MM(1) Raised $273.1MM of common equity Raised dividend by 82% to $0.20 Redeemed $166.8MM of preferred shares (average coupon of 7.8%) Closed on $177.5MM seven-year unsecured term loan Swapped to a fixed interest rate of 3.87%(2) Closed on $300.0MM five-year unsecured term loan Swapped to a fixed interest rate of 2.68%(2) Reduced the cost of debt from 5.2% in 2011 to 4.3% in 2012 and the cost of debt and preferred from 6.0% in 2011 to 4.9% in 2012
(1) Mezzanine Loan is secured by the equity interest in the entities which own the hotels. (2) The interest rate on the term loan is fixed at the given percent when leverage is between 4 and 4.75 times. INVESTOR PRESENTATION • PAGE 4
LASALLE HOTEL PROPERTIES Geographic Diversification
SEATTLE
BOSTON
NYC NEWPORT
CHICAGO HILADELPHIA SAN FRANCISCO P
INDIANAPOLIS LEESBURG DC SANTA CRUZ
LOS ANGELES
SAN DIEGO
INTERESTS IN 42 HOTELS IN 13 MARKETS IN 9 STATES AND THE DISTRICT OF COLUMBIA 8 TARGET URBAN MARKETS
INVESTOR PRESENTATION • PAGE 5 LASALLE HOTEL PROPERTIES Major Market Diversification
89% of the Company’s EBITDA is located in 9 major markets.
Other - 11% Washington D.C. - 18%
NYC - 13%
Seattle - 2% Boston - 16% Philadelphia - 5%
San Francisco - 6%
San Diego - 13% Los Angeles - 9%
Chicago - 7%
Property EBITDA Trailing twelve months ended December 31, 2012
Note: Charts on pages 6, 7, 8, 9 and 42 represent the portfolio as of December 31, 2012. Hotel Palomar, L’Auberge, and Liberty EBITDA during prior ownership included for the trailing twelve months ended December 31, 2012. INVESTOR PRESENTATION • PAGE 6 LASALLE HOTEL PROPERTIES Market Type Diversification
Resort - 14%
Convention - 22%
Urban - 64%
Property EBITDA Westin Copley Place Trailing twelve months ended December 31, 2012
INVESTOR PRESENTATION • PAGE 7 LASALLE HOTEL PROPERTIES Portfolio Diversification
Terminable-at-Will vs. Longer-Term Brand/Independent Diversification Management Agreements
Embassy Suites - 2%
Westin - 18% Longer-Term - 20% Sofitel - 3% Hyatt - 2% Marriott - 5% Independent - 62% Hilton - 8% Terminable-at- Will - 80%
Property EBITDA Trailing twelve months ended December 31, 2012
INVESTOR PRESENTATION • PAGE 8 LASALLE HOTEL PROPERTIES Operator Diversification
Utilizing multiple unaffiliated operators provides best practices and access to acquisition opportunities.
Access 2% Highgate - 10% Starwood - 14%
HEI - 11% White Lodging - 5% Hyatt - 2% Benchmark - 1% Denihan - 3%
Destination - 9% OLS - 6%
Thompson - 1% Davidson - 6% Noble House - 5%
Viceroy - 2% JRK - 4% Accor - 3% Kimpton - 16%
Property EBITDA Trailing twelve months ended December 31, 2012
INVESTOR PRESENTATION • PAGE 9 LASALLE HOTEL PROPERTIES Occupancy Comparison – LHO’s Urban Focus vs. MSA
90% LHO Portfolio Average: 79.2% STR Urban Average: 69.5% 86.0% STR U.S. Average: 61.4% 85% 83.7%
81.3% 80.4% 80.4% 80% 78.6% 77.5% 75.4% 74.9% 75.2% 74.7% 75% 71.8% 70.7% 71.2% 70% 67.5% 66.8%
65%
60%
55%
50% DC Boston San Diego Chicago LA NYC Seattle San Fran
MSA Urban Tracts
Source: Smith Travel Research. Note: LA Urban Tract reflects Hollywood/Beverly Hills/City of Santa Monica. Data reflects trailing twelve months ended December 31, 2012.
INVESTOR PRESENTATION • PAGE 10 LASALLE HOTEL PROPERTIES ADR Comparison – LHO’s Urban Focus vs. MSA
$300 LHO Portfolio Average: $205.78 STR Urban Average: $153.94 $278 $275 STR U.S. Average: $106.10
$252 $250 $242
$225 $211 $203 $200 $191 $182 $172 $175 $170 $159 $153 $150 $144 $132 $130 $125 $125 $120
$100
$75
$50 DC Boston San Diego Chicago LA NYC Seattle San Fran
MSA Urban Tracts
Source: Smith Travel Research. Note: LA Urban Tract reflects Hollywood/Beverly Hills/City of Santa Monica. Data reflects trailing twelve months ended December 31, 2012.
INVESTOR PRESENTATION • PAGE 11 LASALLE HOTEL PROPERTIES Return on Investment Capital: AFFO/Debt & Equity
8.0% LHO Peer Avg
7.0%
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0% 2006 2007 2008 2009 2010 2011 2012 LHO Rank 3 4 3 2 1 1 2
Source: Company Reports Note: Peers include HST, BEE, AHT, SHO, DRH, FCH. INVESTOR PRESENTATION • PAGE 12 LASALLE HOTEL PROPERTIES Volatility Comparison
LHO vs. Peer Average Volatility 70 LHO
Peer Median 60
50
40
30
20
10
0 One-Year Two-Year Three-Year Four-Year Five-Year
Source: Towers Watson. Note: Peers include HST, BEE, AHT, SHO, DRH, FCH. Returns as of 12/31/2012. INVESTOR PRESENTATION • PAGE 13 LASALLE HOTEL PROPERTIES Leverage Comparison
11.0
10.0
9.0 8.8
8.0 7.8
7.1 7.0 Debt / EBITDA
6.0
5.2 5.0 5.0
4.2 4.2 4.0
3.0 LHO HST SHO DRH BEE FCH AHT
Note: Leverage ratio defined as debt / LTM EBITDA. HST, DRH, BEE, SHO, FCH, and AHT reflect reported Q4’12 net debt and EBITDA. LHO reflects Q4’12 bank covenant debt to EBITDA.
INVESTOR PRESENTATION • PAGE 14 LASALLE HOTEL PROPERTIES Peer ADR & RevPAR Comparison ADR & RevPAR of Portfolio for YTD 12/31/12 $258 $260
$240
$220
$203 $200 $191 $187
$180 $176 $175
$160 $160
$142 $142 $139 $140 $134 $134
$120
$103 $99 $100
$80 Strategic LaSalle Host Sunstone DiamondRock Felcor Ashford
ADR RevPAR Source: Company Reports. INVESTOR PRESENTATION • PAGE 15 LASALLE HOTEL PROPERTIES Hotel EBITDA Margin Comparison 34%
32% 32.1% 31.7% 31.6% 30% 30.8% 30.5% 30.1% 29.8%
28% 29.3% 29.1% 28.9% 28.8% 28.5% 28.4% 28.4% 28.0% 27.8% 27.6% 27.6% 27.5% 27.4%
26% 27.2% 26.2% 26.2% 26.1%
24% 24.9% 24.9% 24.8% 24.5% 24.4% 24.4% 24.0% 24.0% 23.4%
22% 23.2% 22.7% 22.4% 22.3%
20% 21.3% 21.1% 21.0%
18% 17.9% 16.3% 16% 2007 2008 2009 2010 2011 2012 LaSalle Ashford Sunstone DiamondRock Felcor Host Strategic Source: Company Reports. INVESTOR PRESENTATION • PAGE 16 LASALLE HOTEL PROPERTIES Hotel EBITDA Margin Change Comparison
200 220 185 173 162 160 153 140 131 130 120 120 118 114 113 110 110 90 100 87 87 70 36 30 32 20 51 50 0
2007 58 2008 2009 28 2010 2011 2012 - - 70 - 93 - 130 - 140 - 200 201 - - (200) 297 - 406 (400) - 470 - 496 - 520 520 - -
(600) 690 -
(800) LaSalle Ashford Sunstone DiamondRock Felcor Host Strategic Source: Company Reports. INVESTOR PRESENTATION • PAGE 17 LASALLE HOTEL PROPERTIES Hotel EBITDA per Room Comparison
$30 $30.5 $28.5 $28.2
$25 $27.0 $25.4 $24.9 $24.5 $23.7 $23.6 $22.7 $22.3 $20 $22.0 $21.0 $19.9 $19.4 $19.1 $18.7 $18.5 $18.4 $18.0 $17.0 $16.8 $15 $16.8 $15.8 $15.0 $14.9 $14.7 $14.5 $14.2 $13.7 $13.6 $13.4 $13.0 $12.8 $12.6 $12.0 $10 $12.0 $11.5 $10.5 $10.4 $9.5 $8.9
$5
$0 2007 2008 2009 2010 2011 2012 LaSalle Strategic Host DiamondRock Sunstone Ashford Felcor Source: Company Reports. INVESTOR PRESENTATION • PAGE 18 LASALLE HOTEL PROPERTIES Acquisitions Overview
INVESTOR PRESENTATION • PAGE 19 Viceroy Santa Monica LASALLE HOTEL PROPERTIES External Investment Strategy
High barrier-to-entry urban, convention and resort Focus on urban tracts of 8 institutional-quality major markets – superior long-term performance Research driven Value added
San Diego Paradise Point
Sofitel Lafayette Square
Hyatt Harborside - Boston INVESTOR PRESENTATION • PAGE 20 LASALLE HOTEL PROPERTIES Urban RevPAR Growth Comparison
Urban hotels consistently outperform with average RevPAR growth approximately 49% higher than the industry.
12%
10%
8%
6%
4%
2%
0%
(2%)
(4%)
(6%)
(8%)
(10%)
(12%)
(14%) Urban Hotels Average (’88-’12): 4.2% (16%) US Hotels (18%) Average (’88-’12): 2.9% (20%) 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12
Industry Average Urban Hotels
INVESTOR PRESENTATION • PAGE 21 LASALLE HOTEL PROPERTIES Acquisition Summary – 2010 through 2012
Purchase Number Acquisition Market Price of Rooms Date Acquired Sofitel Washington DC Washington, DC $95.0MM 237 March 1, 2010 Hotel Monaco San Francisco San Francisco, CA $68.5MM 201 September 1, 2010 Westin Philadelphia Philadelphia, PA $145.0MM 294 September 1, 2010 Embassy Suites Center City Philadelphia, PA $79.0MM 288 September 1, 2010 Hotel Roger Williams New York, NY $90.0MM 193 October 6, 2010 Chamberlain West Hollywood West Hollywood, CA $38.5MM 113 December 6, 2010 Viceroy Santa Monica Santa Monica, CA $80.1MM 162 March 16, 2011 Villa Florence San Francisco, CA $67.1MM 182 October 5, 2011 Park Central New York, NY $396.2MM 934 December 29, 2011 Hotel Palomar Washington DC Washington, DC $143.8MM 335 March 8, 2012 Mezzanine Loan On Santa Monica, CA $67.4MM 198/129 July 13, 2012 Shutters on the Beach/Casa Del Mar L'Auberge Del Mar Del Mar, CA $76.9MM 120 December 6, 2012 The Liberty Hotel Boston, MA $170.0MM 298 December 28, 2012 Total(1) $1,450.1MM 3,357
(1) Totals do not include Shutters on the Beach and Casa Del Mar. INVESTOR PRESENTATION • PAGE 22 LASALLE HOTEL PROPERTIES The Liberty Hotel
Excellent location within one of our eight target markets Located in the Beacon Hill neighborhood of Boston Originally constructed as the Charles Street Jail 298 guestrooms, including 10 suites Features 5 food and beverage outlets including CLINK, Alibi and Scampo 8,400 square feet of meeting space INVESTOR PRESENTATION • PAGE 23
LASALLE HOTEL PROPERTIES L’Auberge Del Mar
Located in Del Mar, California
Excellent location overlooking the Pacific Ocean
120 guestrooms, including 8 suites
Food and beverage outlets include 128-seat Kitchen 1540, Blue Bar, and Waterfall Terrace
16,500 square feet of meeting and function space
5,000 square foot Spa L’Auberge
INVESTOR PRESENTATION • PAGE 24 LASALLE HOTEL PROPERTIES Shutters on the Beach / Casa Del Mar – Mezzanine Loan
Shutters on the Beach Excellent opportunity to acquire a performing loan at a strong yield of 10.4% Mezzanine Loan Purchase Price: $67.4MM (94% of $72.0MM Par Value) Located in Santa Monica, California Iconic assets in a strong market with limited capital requirements Casa Del Mar Shutters on the Beach 198 guestrooms, including 15 suites Casa del Mar 129 guestrooms, including 3 suites
INVESTOR PRESENTATION • PAGE 25 LASALLE HOTEL PROPERTIES Hotel Palomar Washington DC
Excellent location within one of our eight target markets Located one block away from Dupont Circle and Embassy Row 335 guestrooms, including 26 suites Urbana Restaurant and Wine Bar seats 173 11,000 square feet of meeting space INVESTOR PRESENTATION • PAGE 26 LASALLE HOTEL PROPERTIES Park Central Hotel
Located in midtown New York City
Excellent location three blocks south of Columbus Circle and Central Park
934 guestrooms, including 20 suites
Food and beverage outlets include 88- seat Cityhouse and 50-seat Bar Bella
14,000 square feet of meeting space
4,800 square feet of retail space
INVESTOR PRESENTATION • PAGE 27 LASALLE HOTEL PROPERTIES Villa Florence
Located in the heart of the Union Square district in San Francisco
Excellent location in one of our eight target markets
182 guestrooms, including 23 suites
Two food and beverage outlets including 200-seat Kuleto’s and 24-seat Bar Norcini
1,600 square feet of meeting space
INVESTOR PRESENTATION • PAGE 28 LASALLE HOTEL PROPERTIES Viceroy Santa Monica
Premier location in one of the strongest US hotel submarkets Located on Ocean Avenue, across the street from Santa Monica Beach 162 guestrooms, including 18 suites Food and Beverage outlets include 176-seat Whist restaurant and 86-seat Cameo Bar “Top 100 Hotels in the US and Canada” by Travel + Leisure in 2009
INVESTOR PRESENTATION • PAGE 29 LASALLE HOTEL PROPERTIES Chamberlain West Hollywood
Located in the heart of West Hollywood
Excellent location in one of our eight target markets
113 guestrooms, all suites
Suites average over 500 square feet, include private balcony, fireplace
Bistro at Chamberlain serves as a three- meal food and beverage outlet
INVESTOR PRESENTATION • PAGE 30 LASALLE HOTEL PROPERTIES Hotel Roger Williams
Located in midtown New York City
Excellent location in one of our eight target markets
193 guestrooms, including 17 with private landscaped terraces
Lounge Roger Williams serves as a three-meal food and beverage outlet
1,300 square feet of meeting space
INVESTOR PRESENTATION • PAGE 31 LASALLE HOTEL PROPERTIES Hotel Monaco San Francisco
Excellent location within one of our eight target markets Located two blocks from Union Square 201 guestrooms, including 35 suites Food and beverage outlets include 190-seat Grand Café and 88-seat Grand Café Bar 9,000 square feet of meeting space
INVESTOR PRESENTATION • PAGE 32
LASALLE HOTEL PROPERTIES Westin Philadelphia
Strategic and central location within one of the strongest US hotel markets
Part of Liberty Place mixed-use development located near Rittenhouse Square
294 guestrooms, including 19 suites
Three food and beverage outlets including 77-seat Winthorpe and Valentine, 34-seat Winthorpe and Valentine Bar, and the Lobby Lounge
17,000 square feet of meeting space
INVESTOR PRESENTATION • PAGE 33 LASALLE HOTEL PROPERTIES Sofitel Washington, DC Lafayette Square
Excellent location within one of our eight target markets
Located two blocks from the White House
237 guestrooms, including 17 suites
Two food and beverage outlets including 70-seat iCi Urban Bistro and 60-seat LeBar lounge
5,500 square feet of meeting space
INVESTOR PRESENTATION • PAGE 34 LASALLE HOTEL PROPERTIES Capital Investments
INVESTOR PRESENTATION • PAGE 35 Westin Michigan Avenue LASALLE HOTEL PROPERTIES Park Central Hotel Renovation
Split into two hotels in 2013: Park Central and WestHouse (Separate entrance on 55th) Commenced January 2013 Continuing through at least the third quarter of 2013, and possibly into the fourth quarter of 2013 761 rooms in the main hotel: Park Central 173 rooms upgraded for the premium hotel: WestHouse 2012 ADR STR Market Manhattan $277.68 STR Market Times Square $275.42 Park Central Hotel $221.14
Source: STR. INVESTOR PRESENTATION • PAGE 36 LASALLE HOTEL PROPERTIES Capital Investments
Donovan House
$160 ($ in millions) Renovation/Repositioning $140 $140 Refurbishment $128 $120
$100 $87 89 $80 90 $68 $59 $63 $60 63 $49 30 42 $40 $33 $33 $36 $33 $30 45 $28 $29 38 $22 51 23 29 14 16 $20 26 22 21 38 13 33 26 24 17 10 9 8 14 15 11 $0 7 7 7 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 (F)
INVESTOR PRESENTATION • PAGE 37 LASALLE HOTEL PROPERTIES Capital Investments per Room
Hotel Sax
San Diego Paradise Point
$16 LHO Portfolio ($ in thousands) Average (‘99–’13): $7.5 $14 15.1
$12
$10
$8 13.2 $6 10.3 $4 7.7 7.9 8.2 6.3 6.9 7.0 6.7 6.2 5.5 4.6 $2 3.4 3.6
$0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013(F)
Note: A portion of 2012 capital will be carried over into 2013. INVESTOR PRESENTATION • PAGE 38 LASALLE HOTEL PROPERTIES Recent Renovations
Hotel Renovation Completion Date Hotel Monaco Westin Michigan Ave Meeting Space March 2012 Amarano Burbank Addition of 33 Guestrooms, Public SpacApril 2012 Le Parc Guestrooms April 2012 Roger Williams Guestrooms, Public Space June 2012 Le Montrose Guestrooms July 2012 Hotel Deca Guestrooms February 2013 Hotel Monaco Guestrooms February 2013 Hotel Madera Guestrooms March 2013
Hotel Deca The Roger
INVESTOR PRESENTATION • PAGE 39 LASALLE HOTEL PROPERTIES Balance Sheet Overview
INVESTOR PRESENTATION • PAGE 40 Gild Hall LASALLE HOTEL PROPERTIES Balance Sheet
Grafton on Sunset L’Auberge Del Mar
Keep financial leverage low on high operating leverage businesses Stagger debt maturities to lower risk Utilize combination of fixed and floating rate debt Closed on seven-year unsecured term loan at fixed rate of 3.87% in May Closed on five-year unsecured term loan at very attractive fixed rate of 2.68% in August Reduced the cost of debt from 5.2% in 2011 to 4.3% in 2012 and the cost of debt and preferred from 6.0% in 2011 to 4.9% in 2012
INVESTOR PRESENTATION • PAGE 41
LASALLE HOTEL PROPERTIES Balance Sheet
As of 12/31/12 Property Level Debt Amount % Variable Rate Debt(1) $195.5 5% Fixed Rate Debt(2) 1,056.6 27% 7 Encumbered Total Debt $1,252.1 32% Hotels - 26%
Preferred Equity $227.5 5% 33 Unencumbered (3) Common Equity $2,430.9 62% Hotels - 74%
Total Enterprise Value $3,910.5 100%
Leverage Ratio 4.2x Property EBITDA Trailing twelve months ended December 31, 2012
Notes: (1) Weighted average interest rate for variable rate debt is 2.2% as of December 31, 2012. (2) Weighted average interest rate for fixed rate debt is 4.5% as of December 31, 2012. (3) Based on market value of 95.7MM shares and units at $25.39 on February 28, 2013.
INVESTOR PRESENTATION • PAGE 42 LASALLE HOTEL PROPERTIES Consistent Low Leverage over the Past Decade Covenant Total Debt / EBITDA
10.0x
9.0x
8.0x
7.0x
6.0x
5.0x 4.7x 4.7x 4.4x 4.2x 4.2x 4.0x 3.9x 4.0x 3.8x 3.6x 3.7x
3.0x 3.0x
2.0x
1.0x
0.0x 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Note: Ratios per the historical Credit Facility covenants. INVESTOR PRESENTATION • PAGE 43 LASALLE HOTEL PROPERTIES Debt Maturities ($ in millions)
Total Debt $1,252.1MM $1,200
$1,000
Solamar (5.49%) $800 Deca (6.28%) Westin Copley (5.28%) Indianapolis (5.99%) Westin Michigan Avenue (5.75%) $600 Roger Williams (6.31%) Credit Facilities (LIBOR + 2.00%)
$453.0 5 YR Term Loan (2.68%) Hyatt Bonds (Weekly Floaters) $400 $153.0 7 YR Term Loan (3.87%) $299.9
$100.1 $200 $300.0 $137.2 $210.0 $177.5
$60.1 $9.3 $62.6 $42.5 $0 2012 2013 2014 2015 2016 2017 2018 2019 Note: Unsecured Credit Facilities mature in 2017 and reflect balance of $153.0MM as of December 31, 2012. Total capacity of Senior Unsecured Credit Facility and LHL Credit Facility is $775.0MM. Numbers may not foot due to differences caused by rounding.
INVESTOR PRESENTATION • PAGE 44 LASALLE HOTEL PROPERTIES Conclusion
Independent and brand diversification Heavy asset management focus with best-in-class EBITDA margins Acquisition strategy primarily focused on the top markets and the CBD within those markets Low-leverage capital structure Villa Florence Most management contracts are terminable at will Mission of providing best returns while seeking to minimize risk each step along the investment path
Hotel Solamar
INVESTOR PRESENTATION • PAGE 45 LASALLE HOTEL PROPERTIES
INVESTOR PRESENTATION • PAGE 46 LASALLE HOTEL PROPERTIES Disclaimer
This presentation has been prepared for informational purposes only from information supplied by LaSalle Hotel Properties (“LHO” or the “Company”) and from third-party sources indicated herein. Such third-party information has not been independently verified. The Company makes no representation or warranty, expressed or implied, as to the accuracy or completeness of such information. This presentation also includes certain statements, estimates and projections provided by LHO management with respect to the anticipated future performance of LHO, including forward-looking statements within the meaning of 21E of the Securities Exchange Act of 1934. Such statements, estimates and projections reflect various assumptions by LHO management concerning anticipated results and have been included solely for illustrative purposes. No representations are made as to the accuracy of such statements, estimates or projections, which necessarily involve known and unknown risks, uncertainties and other factors that, in some ways, are beyond management’s control. Such factors include the risk factors discussed in the Company’s SEC filings. Accordingly, actual results may vary materially from the projected results contained herein and you should not rely on any forward-looking statements made herein or made in connection with this presentation. The Company shall have no obligation or undertaking to update or revise any forward-looking statements to reflect any change in Company expectations or results, or any change in events. This presentation includes disclosure of non-GAAP measures, including funds from operations ("FFO") and earnings before interest, taxes, depreciation and amortization (“EBITDA”). The Company considers FFO and EBITDA to be key supplemental measures of the Company’s performance, and they should be considered along with, but not as alternatives to, net income as a measure of the Company’s operating performance. Neither FFO nor EBITDA represents cash generated from operating activities determined by GAAP and should not be considered as alternatives to net income, cash flow from operations or any other operating performance measure prescribed by GAAP. Neither FFO nor EBITDA is a measure of the Company’s liquidity, nor is FFO or EBITDA indicative of funds available to fund the Company’s cash needs, including its ability to make cash distributions. Please refer to the Company's filings with the SEC and its earnings releases, which are available at www.lasallehotels.com, for disclosure of the Company's net income, for reconciliations of FFO and EBITDA to net income and for additional detail on the Company's use of non- GAAP measures.
INVESTOR PRESENTATION • PAGE 47