Jefferies Expects RevPAR Increase for LaSalle Hotel Properties (LHO)
Jefferies is out with its report on LaSalle Hotel Properties (NYSE: LHO) as it expects a RevPAR increase in 4Q10.
In a note to clients, Jefferies writes, "For LHO we expect RevPAR to increase 9.5% in 4Q10 due to the composition of the portfolio which is comprised of boutique urban hotels. We believe LHO's mix of unbranded properties will allow it to drive margin expansion through the recovery. We are expecting EBITDA margins of 22.7% in 4Q10 which is up 100 bps from 21.7% in 4Q09. In addition, we expect management to address its acquisition strategy with a focus on key markets and the pricing of assets. Overall, we forecast EBITDA of $37.3 million for the quarter and AFFO per share of $0.29, vs. consensus of $0.25."
Jefferies maintains a Buy and raises its PT from $31 to $34 on LHO.
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