LaSalle Hotel Properties (NYSE:LHO) Q4 2015 Earnings Conference Call - Final Transcript
Feb 19, 2016 • 10:00 am ET
Good day and welcome to the LHO Fourth Quarter 2015 Earnings Call. At this time, I would like to turn the conference over to Max Leinweber, Director of Finance. Please go ahead, sir.
Thank you, Alan. Good morning, everyone, and welcome to the fourth quarter 2015 earnings call and webcast for LaSalle Hotel Properties. I am here today with Mike Barnello, our President and Chief Executive Officer; and Bruce Riggins, our Chief Financial Officer. Mike will provide an overview of the industry, discuss our 2015 results and activities and talk about a few recent case studies of our company. Bruce will provide details on our capital market activities and our balance sheet. Then, we will open the call for Q&A.
Before we start, please take note of the following. Any statements that we make today about future results and performance or plans and objectives are forward-looking statements. Actual results may differ as a result of factors, risks and uncertainties, over which the company may have no control. Factors that may cause actual results to differ materially are discussed in the company's 10-K, quarterly reports and its other reports filed with the SEC. The company disclaims any obligation or undertaking to update or revise any forward-looking statements.
Our SEC reports as well as our press releases are available at our website, lasallehotels.com. Our most recent 8-K and yesterday's press release include reconciliations of non-GAAP measures to the most comparable GAAP measures.
With that, I will turn the call over to Mike Barnello. Mike?
Thanks, Max, and thanks, everyone for joining us this morning for what we know is a busy earnings week. Given that we've refined our outlook five weeks ago, I'd like to use our time together this morning to review the areas, in which our company continues to excel including a few case studies as well as our view how we're looking at the current industry trends.
Last year, we completed two great hotel acquisitions, provided a mezzanine loan on two iconic assets, expanded our hotel EBITDA margins to a new record high, and we enhanced our already well-positioned balance sheet.
Before we get into the details, please note in order to demonstrate the stabilized run rate of our portfolio, the operating statistics we mentioned this morning during our prepared remarks exclude the impact of the union disruption at Park Central New York and WestHouse during August, September, and October of last year.
With that, I'll startup by highlighting our outstanding EBITDA and margins. We pride ourselves on our ability to consistently deliver strong adjusted EBITDA and margin performance during all phases of lodging cycle. With 2.6% RevPAR growth in 2015, we're pleased with our operators and our asset management team's ability to grow hotel EBITDA by 8%, more than three times our RevPAR growth.
Similarly, we're proud of our adjusted EBITDA growth of more than 15% last year. Additionally, our historically best-in-class hotel EBITDA margin rose to 34% and expanded by 155 basis points. In total, our hotel expense