LHOPJ.PFD (LaSalle Hotel Properties) Interest Coverage : 5.12 (As of Sep. 2018)

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What is LaSalle Hotel Properties Interest Coverage?

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. LaSalle Hotel Properties's Operating Income for the three months ended in Sep. 2018 was $51 Mil. LaSalle Hotel Properties's Interest Expense for the three months ended in Sep. 2018 was $-10 Mil. LaSalle Hotel Properties's interest coverage for the quarter that ended in Sep. 2018 was 5.12. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for LaSalle Hotel Properties's Interest Coverage or its related term are showing as below:

LHOpJ.PFD' s Interest Coverage Range Over the Past 10 Years
Min: 1.56 Med: 2.99 Max: 4.82
Current: 3.46

LHOpJ.PFD's Interest Coverage is not ranked
in the REITs industry.
Industry Median: 2.84 vs LHOpJ.PFD: 3.46

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

LaSalle Hotel Properties Interest Coverage Historical Data

The historical data trend for LaSalle Hotel Properties's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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LaSalle Hotel Properties Interest Coverage Chart

LaSalle Hotel Properties Annual Data

Trend

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Interest Coverage

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2.56

3.35

3.62

4.82

4.10

LaSalle Hotel Properties Quarterly Data
	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18
Interest Coverage	Get a 7-Day Free Trial															4.95	2.60	0.10	6.06	5.12

Competitive Comparison of LaSalle Hotel Properties's Interest Coverage

For the REIT - Hotel & Motel subindustry, LaSalle Hotel Properties's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage Distribution in the REITs Industry

For the REITs industry and Real Estate sector, LaSalle Hotel Properties's Interest Coverage distribution charts can be found below:

* The bar in red indicates where LaSalle Hotel Properties's Interest Coverage falls into.

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LaSalle Hotel Properties Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

LaSalle Hotel Properties's Interest Coverage for the fiscal year that ended in Dec. 2017 is calculated as

Here, for the fiscal year that ended in Dec. 2017, LaSalle Hotel Properties's Interest Expense was $-37 Mil. Its Operating Income was $150 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,120 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2017 )	/	Interest Expense (A: Dec. 2017 )
	=	-1	*	149.974	/	-36.595
	=	4.10

LaSalle Hotel Properties's Interest Coverage for the quarter that ended in Sep. 2018 is calculated as

Here, for the three months ended in Sep. 2018, LaSalle Hotel Properties's Interest Expense was $-10 Mil. Its Operating Income was $51 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,078 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Sep. 2018 )	/	Interest Expense (Q: Sep. 2018 )
	=	-1	*	51.446	/	-10.044
	=	5.12

The higher the ratio, the stronger the company's Financial Strength is.

LaSalle Hotel Properties (NYSE:LHOpJ.PFD) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

LaSalle Hotel Properties Interest Coverage Related Terms

Thank you for viewing the detailed overview of LaSalle Hotel Properties's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

LaSalle Hotel Properties Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » LaSalle Hotel Properties (NYSE:LHOpJ.PFD) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.lasallehotels.com

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 L Martin	director	7550 WISCONSIN AVE, 10TH FLOOR, BETHESDA MD 20814
Kenneth G Fuller	officer: EVP, CFO, Secretary, Treasurer	7550 WISCONSIN AVE, 10TH FLOOR, BETHESDA MD 20814
Denise M Coll	director	3 BETHESDA METRO CENTER, SUITE 1200, BETHESDA MD 20814
Jeffrey T. Foland	director	P.O. BOX 66100 - HDQLD, CHICAGO IL 60666
Bruce A Riggins	officer: CFO, EVP and Secretary	7550 WISCONSIN AVE, 10TH FLOOR, BETHESDA MD 20814
Alfred L. Young	officer: EVP and COO	3 BETHESDA METRO CENTER, SUITE 1200, BETHESDA MD 20814
Julio E Morales	officer: Chief Accounting Officer	3 BETHESDA METRO CENTER, SUITE 1000, BETHESDA MD 20814
Jon E Bortz	director, officer: Chairman, President and CEO	4747 BETHESDA AVENUE, SUITE 1100, BETHESDA MD 20814
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
William S Mccalmont	director	3300 DREXEL, DALLAS TX 75205
Michael D Barnello	officer: Chief Operating Officer	LASALLE HOTEL PROPERTIES, 4800 MONTGOMERY LANE STE M25, BETHESDA MD 20814
Donald S Perkins	director	1319 MARQUETTE DR, ROMEOVILLE IL 60441
Kelly L Kuhn	director	84 INVERNESS CIRCLE EAST, ENGLEWOOD CO 80112