Bethesda-based LaSalle (NYSE: LHO) reported a net income of $12.5 million, or 30 cents per share, for the quarter ended Sept. 30, compared to $20.2 million, or 50 cents per share, during the same time period in 2007. That figure was affected by a $4.3 million expense related to a settlement with hotel management firm Meridien.
“Despite weakening trends, our operators were successful in generating positive revenue growth while eliminating expense growth to a minor increase,” CEO Jon Bortz said in a statement Thursday. In dealing with the country’s challenging economic environment, the firm is concentrating on aggressively lowering expenses, Bortz said.
The company also reduced its annual dividend to $1.02 per common share, compared to the previously declared $2.10 per share. Hans Weger, LaSalle’s chief financial officer, said in a statement that the firm took this course of action because it believes the lodging industry and the economy will continue to experience declines through 2009.
LaSalle’s room revenue per available room (RevPAR) for the quarter decreased 0.1 percent from the third quarter of last year to $166.76. Occupancy was up, but this was offset by a decline in the average daily rate for a room.
The firm’s funds from operations totaled $39.9 million, compared to $43.7 million in the third quarter of last year.