UPDATE: BMO Capital Markets Reiterates Market Perform Rating, Lowers PT on LaSalle Hotel Properties on 2013 RevPAR Guidance

In a report published Monday, BMO Capital Markets reiterated its Market Perform rating on LaSalle Hotel Properties

, but slightly lowered its price target from $29.00 to $28.00. BMO Capital Markets noted, “Management's 2013 RevPAR guidance of 3%-6% (excluding the Park Central renovation) was less robust than expected as the weak city-wide calendar this year will make for difficult comps on the group side, and lackluster performance in Washington, D.C. (excluding the one-time inauguration benefit) is likely to persist. To that latter point, DC is LHO's single-largest market at 20% of EBITDA and while its upper-upscale and luxury hotels do not cater overly much to federal government travelers (about 3% of its overall business), sequestration would still have a negative impact on pricing power in that region. That said, the stock has traded down ~9% this week versus ~4% for the group and while crossing into interesting territory, we think the overhang from a weak Washington, D.C. market does not get resolved for some time – a necessary element to restore the stock to its historical premium valuation, in our view.” LaSalle Hotel Properties closed on Friday at $25.48.