In connection with its expected filing of a shelf registration statement on Form S-3, LaSalle Hotel Properties (NYSE:LHO) has adjusted its consolidated financial statements and notes thereto that were previously filed in its 2008 Annual Report on Form 10-K in order to retroactively apply certain new accounting standards that were adopted on January 1, 2009.

On January 1, 2009, the Company adopted Statement of Financial Accounting Standards No. 160 ("FAS 160"), Noncontrolling Interests in Consolidated Financial Statements. FAS 160 requires noncontrolling interests (previously referred to as minority interests) to be reported as a component of total equity, which changes the presentation of the noncontrolling interests in the December 31, 2008 and December 31, 2007 consolidated balance sheets and statements of operations and equity for the years ended December 31, 2008, 2007 and 2006, from what was previously reported.

On January 1, 2009, the Company adopted Financial Accounting Standards Board Staff Position on Emerging Issues Task Force Issue 03-6, Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securities("FSP EITF 03-6-1"), which has been applied retrospectively to calculations of basic and diluted earnings per common share for the years ended December 31, 2008, 2007 and 2006. FSP EITF 03-6-1 clarifies that unvested share-based payment awards that contain non-forfeitable rights to dividends are considered participating securities and should be included in the calculation of basic earnings per share using the two-class method prescribed by Statement of Financial Accounting Standards No.128, Earnings per Share.

Management does not believe that the adjustments in accordance with FAS 160 and FSP EITF 03-6-1 have a material effect on the Company's selected financial data or management's discussion and analysis of financial condition and results of operations for the years ended December 31, 2008, 2007 and 2006 as previously reported in our 2008 Annual Report on Form 10-K. The Company is not revising its selected financial data or management's discussion and analysis included in its 2008 Annual Report on Form 10-K given the insignificance of the reclassified and revised amounts.

(d) Exhibits.

The following exhibits are included with this report.

Exhibit
Number       Description

12.1         Computation of the Registrant's Ratios of Earnings to Combined Fixed
             Charges and Preferred Share Dividends

23.1         Consent of KPMG LLP

99.1         Report of KPMG LLP

99.2         Consolidated Financial Statements and Notes to Consolidated Financial
             Statements as of December 31, 2008 and 2007 and for the Years Ended
             December 31, 2008, 2007 and 2006