Two out of three good quarters for Sax owner this year

17-Oct-12 – For the second time this year, quarterly net profit is up for the real estate investment trust that owns Hotel Sax and other commercial property at Marina City.

From July through September, net income at LaSalle Hotel Properties was up 77 percent from the same period last year to $26.5 million – off revenue of $237 million, up 19 percent. Revenue per available room, a fundamental indicator of financial health in the hotel industry, increased 5.1 percent from last year. Average daily rate was up 3.3 percent. Occupancy was up slightly to 86.7 percent.

LaSalle released its third quarter results on Wednesday. Year-to-date, the Maryland-based company has made $35.2 million from revenue of $651.4 million. Net income for the second quarter was $24.8 million, much better than in the first quarter when it lost $16.1 million.

In August, LaSalle took out an unsecured five-year loan for $300 million, using it, according to CEO Michael Barnello, “to further reduce the balance on our senior unsecured credit facility,” now down to $201 million still owed. The company currently has total outstanding debt of $1.21 billion.

 Related story: Sax transition dents LaSalle 2Q