UPDATE: BMO Capital Markets Initiates LaSalle Hotel Properties at Market Perform
BMO Capital Markets initiated coverage on LaSalle Hotel Properties (NYSE: LHO) with a Market Perform rating and a $29.00 price target.
BMO Capital Markets noted, "LaSalle is a REIT that owns a portfolio of luxury, upper-upscale, and upscale hotels focused in coastal markets. A large portion (~60% of EBITDA) of its hotels are independent and boutiquestyled, which gives the company more flexibility in dealing with operators and allows for higher margins over the long term. Our biggest concern is LaSalle's exposure to Washington, D.C., which has struggled with government travel reductions and represents 20% of its EBITDA – the highest of the lodging REITs. …. We believe the company's current valuation, after adjusting for renovation displacement, is reasonable at current levels."
LaSalle Hotel Properties closed at $26.39 on Monday.
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Tags: BMO Capital Markets