LaSalle Hotel Properties Provides Update to Outlook Due to Impact from Hurricane Sandy

  LaSalle Hotel Properties Provides Update to Outlook Due to Impact from
  Hurricane Sandy

     Reiterates no reported injuries or physical damage to LHO properties

Business Wire

BETHESDA, Md. -- November 09, 2012

LaSalle Hotel Properties (NYSE:LHO) today provided an update to its 2012
outlook due to the impact from Hurricane Sandy. The Company’s revised
financial expectations for 2012 are as follows:

                                                           
                          Previous Outlook             Current Outlook
                          Low-end     High-end       Low-end    High-end
                          ($'s in millions except per share/unit data)
                                                                       
RevPAR growth               4.5%           4.8%          4.0%          4.3%
Hotel EBITDA Margins        32.3%          32.5%         31.9%         32.1%
Hotel EBITDA Margin        125 bps       150 bps      85 bps       110 bps
Change
Adjusted EBITDA           $ 263.5       $  265.5       $ 259.0      $  261.0
Adjusted FFO              $ 179.3       $  180.3       $ 175.3      $  176.3
Adjusted FFO per          $ 2.09        $  2.10        $ 2.04       $  2.05
diluted share/unit
                                                                       

“We are fortunate that our hotel teams reported no injuries or physical damage
as a result of Hurricane Sandy,” said Michael D. Barnello, President and Chief
Executive Officer of LaSalle Hotel Properties. “While we are providing this
update to our outlook due to the business impact from the storm, we are still
working to determine our ability to recover any lost income through our
insurance policy.”

LaSalle Hotel Properties is a leading multi-operator real estate investment
trust. The Company owns interests in 40 hotels of which 38 are owned 100
percent. The 38 wholly-owned properties are upscale full-service hotels,
totaling 10,200 guest rooms in 13 markets in 9 states and the District of
Columbia. The Company focuses on owning, redeveloping and repositioning
upscale full-service hotels located in urban, resort and convention markets.
LaSalle Hotel Properties seeks to grow through strategic relationships with
premier lodging companies, including Westin Hotels and Resorts, Hilton Hotels
Corporation, Outrigger Lodging Services, Noble House Hotels & Resorts, Hyatt
Hotels Corporation, Benchmark Hospitality, White Lodging Services Corporation,
Thompson Hotels, Davidson Hotel Company, Denihan Hospitality Group, the
Kimpton Hotel & Restaurant Group, LLC, Accor, Destination Hotels & Resorts,
HEI Hotels & Resorts, JRK Hotel Group, Inc., Viceroy Hotel Group, Highgate
Hotels and Access Hotels & Resorts.

This press release, together with other statements and information publicly
disseminated by the Company, contains certain forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended. The
Company intends such forward-looking statements to be covered by the safe
harbor provisions for forward-looking statements contained in the Private
Securities Litigation Reform Act of 1995 and includes this statement for
purposes of complying with these safe harbor provisions. Forward-looking
statements, which are based on certain assumptions and describe the Company's
future plans, strategies and expectations, are generally identifiable by use
of the words “will,” "believe," "expect," "intend," "anticipate," "estimate,"
"project" or similar expressions. Forward-looking statements in this press
release include, among others, statements about outlook for RevPAR, hotel
EBITDA margin, adjusted FFO, adjusted EBITDA and derivations thereof. You
should not rely on forward-looking statements since they involve known and
unknown risks, uncertainties and other factors that are, in some cases, beyond
the Company's control and which could materially affect actual results,
performances or achievements. Factors that may cause actual results to differ
materially from current expectations include, but are not limited to, (i) the
Company’s dependence on third-party managers of its hotels, including its
inability to implement strategic business decisions directly, (ii) risks
associated with the hotel industry, including competition, increases in wages,
energy costs and other operating costs, actual or threatened terrorist
attacks, downturns in general and local economic conditions and cancellation
of or delays in the completion of anticipated demand generators, (iii) the
availability and terms of financing and capital and the general volatility of
securities markets, (iv) risks associated with the real estate industry,
including environmental contamination and costs of complying with the
Americans with Disabilities Act and similar laws, (v) interest rate increases,
(vi) the possible failure of the Company to qualify as a REIT and the risk of
changes in laws affecting REITs, (vii) the possibility of uninsured losses,
(viii) risks associated with redevelopment and repositioning projects,
including delays and cost overruns and (ix) the risk factors discussed in the
Company’s Annual Report on Form 10-K as updated in its Quarterly Reports.
Accordingly, there is no assurance that the Company's expectations will be
realized. Except as otherwise required by the federal securities laws, the
Company disclaims any obligation or undertaking to publicly release any
updates or revisions to any forward-looking statement contained herein (or
elsewhere) to reflect any change in the Company’s expectations with regard
thereto or any change in events, conditions or circumstances on which any such
statement is based.

Contact:

LaSalle Hotel Properties
Bruce A. Riggins, 301-941-1500
or
Kenneth G. Fuller, 301-941-1500