LaSalle Hotel Properties Calls DC One of its Strongest Markets in the Second Quarter

The Donovan House

During their quarterly conference call with analysts last week, executives with LaSalle Hotel Properties said Washington D.C. was one of the Bethesda-based firm’s best performing markets in the second quarter, and that the firm had felt no effects from sequestration. But the company warned of a difficult third quarter.

RevPar in Washington, D.C. for April “was up almost 18 percent” said Michael D. Barnello, the company’s CEO.

May was down 1.5 percent, and June down 2 percent, but the quarter ended up 4.5 percent, Barnello reported. The company’s Washington, D.C. portfolio checked in at a healthy 91 percent occupancy for the quarter, compared to about 80 percent occupancy nationwide.

“Going forward, D.C. will have a tougher third quarter and a stronger fourth quarter,” Barnello said. “We’re planning for the third quarter to be the worst quarter in D.C. this year. But when we think about how D.C. performed so far, year-to-date, D.C. is up 5.6 percent for the first 6 months. And even if you want to take out the inauguration, if you take out January, our D.C. portfolio was up about 3 percent for February through May.”

The executives singled out the Donovan House as one of its top performing hotels nationwide.

The Donovan House, located at 1155 14th St. NW, opened in March 2008. Its restaurant, Zentan, and rooftop pool bar opened the following summer. The hotel underwent some minor renovations last year after Kimpton Hotel & Restaurant Group, LLC assumed management of the asset in April 2012.

During LaSalle’s first quarter conference call this year, Barnello said the firm had not yet experienced any impact from the sequestration. The same was reported for the second quarter.

“We actually had one group cancel for a small event in D.C. only to rebook several weeks later when they realized they still needed to hold the event,” Barnello reported.