What is LaSalle Hotel Properties Probability of Financial Distress (%)?
Probability of Financial Distress (%) measures the probability that a company will go bankrupt in the upcoming year given its current financial position. A higher ratio indicates a larger probability of bankruptcy for the company, while a lower ratio indicates a healthier fundamental. As of today, LaSalle Hotel Properties's Probability of Financial Distress (%) is 0.00%.
Like the Altman Z-Score, the PFD measures a company's bankruptcy risk. However, the main drawback of the Z-score is it does not apply to banks and insurance companies. According to Investopedia, the concept of "working capital" does not apply to banks and insurance companies, as financial institutions do not have typical current assets or current liabilities like inventories or accounts payable.
Competitive Comparison of LaSalle Hotel Properties's Probability of Financial Distress (%)
For the REIT - Hotel & Motel subindustry, LaSalle Hotel Properties's Probability of Financial Distress (%), along with its competitors' market caps and Probability of Financial Distress (%) data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
LaSalle Hotel Properties's Probability of Financial Distress (%) Distribution in the REITs Industry
For the REITs industry and Real Estate sector, LaSalle Hotel Properties's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where LaSalle Hotel Properties's Probability of Financial Distress (%) falls into.
LaSalle Hotel Properties Probability of Financial Distress (%) Calculation
Probability of Financial Distress (%) (PFD) was developed by John Campbell, Jens Hilscher and Jan Szilagyi in their Search of Distress Risk. It measures the probability that a company will go bankrupt within the next 12 months given its current financial position.
The Probability of Financial Distress (%) was obtained by a logit probability model based on eight explanatory variables. The logit formula to compute the probability of financial distress (LPFD) is given below:
| LPFD | = | -20.12 * NIMTAAVG | + | 1.60 * TLMTA | - | 7.88 * EXRETAVG | + | 1.55 * SIGMA | - | 0.005 * RSIZE | - | 2.27 * CASHMTA | + | 0.070 * MB | - | 0.09 * PRICE | - | 8.87 |
| = | 0.00 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.00% |
The eight explanatory variables are:
1. NIMTAAVG = Net Income to Market Total Assets
*Note that for companies reported quarterly, geometrically declining weighted quarterly Net Income data in latest four quarters are used.
2. TLMTA = Total liabilities to Market Total Assets
3. CASHMTA = Cash to Market Total Assets
For non-financial companies, CASHMTA is measured as:
4. EXRETAVG = Excess Return compared to the S&P 500
EXRETAVG is the weighted excess return compared to the S&P 500 in past 12 month. Geometrically declining weights are imposed on the monthly excess return to reflect lagged information. The weight is halved each quarter.
5. SIGMA = Standard Deviation of Daily Returns
For sigma, we use the annualized standard deviation of a company's returns over the past 92 days (or 63 trading days).
6. RSIZE = Relative Size
| RSIZE | = | log (Market Cap | / | Total Market Cap of S&P 500 companies) |
7. MB = Market to Adjusted Book Equity Ratio
8. PRICE
PRICE is measured as the log of the stock price, capped at log(15).
LaSalle Hotel Properties (LaSalle Hotel Properties) Business Description
Traded in Other Exchanges
N/A
Address
LaSalle Hotel Properties is a real estate investment trust that primarily buys, owns, redevelops, and leases upscale and luxury full-service hotels. These hotels are located in convention, resort, and major urban business markets in certain states across the United States. The primary urban markets include Boston, Chicago, Los Angeles, New York, San Diego, San Francisco, Seattle, and Washington, DC. The company's assets are held by and managed through LaSalle Hotel Operating Partnership, L.P. The firm is the sole general partner of the operating partnership. The company derives its income from its hotel operating revenue, its only segment.
Executives
| Jeffrey T. Foland |
director |
P.O. BOX 66100 - HDQLD, CHICAGO IL 60666 |
| Donald A Washburn |
director |
222 SW HARRISON STREET, APT 23C, PORTLAND OR 97201 |
| Leonard Darryl Hartley |
director |
PGI, 44 CANAL CENTER PLAZA SECOND FL, ALEXANDRIA VA 22314 |
| Stuart L Scott |
director |
JONES LANG LASALLE INCORPORATED, 200 E RANDOLPH DR, CHICAGO IL 60601 |
| Michael D Barnello |
director, officer: President and CEO |
LASALLE HOTEL PROPERTIES, 4800 MONTGOMERY LANE STE M25, BETHESDA MD 20814 |
| Alfred L. Young |
officer: EVP and COO |
3 BETHESDA METRO CENTER, SUITE 1200, BETHESDA MD 20814 |
| Denise M Coll |
director |
3 BETHESDA METRO CENTER, SUITE 1200, BETHESDA MD 20814 |
| Kenneth G Fuller |
officer: EVP, CFO, Secretary, Treasurer |
7550 WISCONSIN AVE, 10TH FLOOR, BETHESDA MD 20814 |
| Jeffrey L Martin |
director |
7550 WISCONSIN AVE, 10TH FLOOR, BETHESDA MD 20814 |
| William S Mccalmont |
director |
3300 DREXEL, DALLAS TX 75205 |
| Bruce A Riggins |
officer: EVP |
7550 WISCONSIN AVE, 10TH FLOOR, BETHESDA MD 20814 |
| Donald S Perkins |
director |
1319 MARQUETTE DR, ROMEOVILLE IL 60441 |
| Kelly L Kuhn |
director |
84 INVERNESS CIRCLE EAST, ENGLEWOOD CO 80112 |
| Hans S Weger |
officer: Chief Financial Officer |
ONE FEDERAL STREET, 23RD FLOOR, BOSTON MA 02110 |
| Julio E Morales |
officer: Chief Accounting Officer |
3 BETHESDA METRO CENTER, SUITE 1000, BETHESDA MD 20814 |
LaSalle Hotel Properties (LaSalle Hotel Properties) Headlines
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