BETHESDA, MD-LaSalle Hotel Properties delivered a stronger-than-expected first quarter, according to its earnings report. One reason for the robust performance, CEO Michael D. Barnello said during the earnings call, was the REIT’s $143.8-million acquisition earlier this year of Hotel Palomar, a local boutique hotel.

The acquisition, he said, resulted “in a significant increase to our full-year projected EBITDA and FFO per share.” The EBITDA margin for the first quarter was 21.8%, a 152-basis-point improvement over Q1 2011. Its adjusted EBITDA was $34 million, an increase of 36.9% over the first quarter of 2011.

More telling, FFO, was $17.8 million, or $0.21 per diluted share/unit. That compares with $10 million or $0.13 per diluted share/unit for the same period last year--an increase of 61.5% in adjusted FFO per diluted share/unit.

Another metric showing growth for the REIT was its RevPar. It increased 6.2% to $127.06, thanks to a 3.9% increase in average daily rate to $176.78 and a 2.3% increase in occupancy to 71.9%. Barnello called the figures “excellent operating results,” noting the portfolio performed better than expected despite several renovations.

These capital-improvement projects included renovations of guestrooms at the Liaison Capitol Hill in Washington, DC and LeParc Suite Hotel in West Hollywood as well as a meeting space renovation at Westin Michigan Avenue in Chicago. The REIT is increasing its dividend by 82% to an annualized rate of $0.80 per share in the second quarter as a result of the robust quarter, it also announced. It is also increasing its full year EBITA and FFO outlook as well.