Another update from my recent course work: This financial management report is based on La Salle Hotel Properties. The full report can be viewed here: La Salle Financial MGMT Project.
“LaSalle Hotel Properties, founded in1998, is a real estate investment trust (REIT) with ownership of 46 upscale, full-service hotel properties in key US urban and convention markets. Property mix includes both independent and corporate branded hotels including Westin, Viceroy, Sofitel, Hyatt, and Embassy Suites (La Salle Properties).
According to Forbes, LaSalle Hotel Properties is a strong choice for investors due to its high yields, long-term financial growth, and conservative financial management. The company is established as a REIT paying a majority of dividends to shareholders. Interest, taxes, depreciation, and amortization margins (EBITA) are low compared to competitive domestic REITs and company’s stock on average has performed well over the past 15 years (To, 2015).
Financials from 2012-2014 were reviewed to determine if company offers investors growth opportunity. Seven measurements were calculated: cost of equity (8.33%), cost of debt (3.42%), weighted average cost of capital (7.24%), value of equity ($164,982,500), value of shares ($37.29), performance evaluation and recommended capital structure.”