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Hersha Hospitality Trust (HT) is a self-advised real estate investment trust (REIT) specializing in the ownership and operation of upscale hotels in key urban gateway markets. With a portfolio of 51 hotels encompassing 7,804 rooms, the company is strategically positioned in bustling cities such as New York, Washington, DC, Boston, Philadelphia, Miami, and select West Coast markets. Hersha's common shares are publicly traded on the New York Stock Exchange under the ticker symbol “HT”.
Hersha Hospitality Trust recently announced its second-quarter results for 2023. The company reported an Adjusted Funds from Operations (AFFO) of $18.1 million, or $0.38 per diluted common share and OP Unit, a notable decrease from the previous year's AFFO of approximately $26.1 million. This decline was primarily due to the sale of 10 hotels in the latter half of 2022 and a normalization in resort markets, though partially offset by robust performance in urban markets.
Neil H. Shah, Hersha’s CEO, expressed optimism about the recovery in core urban markets, which saw double-digit Revenue per Available Room (RevPAR) growth. The company's urban segment, including markets like New York, Boston, and Washington, DC, outperformed and helped mitigate the softer performance in resort markets. Despite this, the company’s resort properties are outperforming pre-COVID levels, providing a new growth baseline.
The company's financial strategy includes substantial debt management. Hersha paid down a $23 million floating rate mortgage and $25 million of the term loan principal, resulting in an estimated annual saving of $4 million in interest expenses. The company's credit facility comprises a $346 million term loan and a $100 million undrawn revolving credit line, maturing in August 2024 with a potential extension to 2025. Approximately 79% of the company’s outstanding debt is fixed or hedged, ensuring financial stability.
For the third quarter of 2023, Hersha anticipates continued recovery driven by corporate and international travel. The company remains cautious about macro-economic factors such as inflation, interest rates, and potential recessions but maintains a positive long-term outlook.
Key Performance Metrics utilized by Hersha include occupancy (77.1%), Average Daily Rate (ADR) ($303.34), and RevPAR ($233.92). These metrics are essential for evaluating hotel performance and are used comparatively against a self-defined competitive peer set.
For more information, visit the company's official website at www.hersha.com.
Hersha Hospitality Trust (HT) reported a fourth-quarter 2022 net income of $26.9 million, translating to $0.62 per share, a significant improvement from a net loss of $18.5 million in Q4 2021. Adjusted Funds from Operations (AFFO) increased 68% year-over-year to $16.1 million, or $0.34 per share. The company achieved a 21.5% growth in Average Daily Rate (ADR) and a 12.6% increase in EBITDA. Notably, occupancy for the comparable hotel portfolio was 71.2%, with a RevPAR of $222.10. Looking ahead, the company anticipates a challenging first quarter 2023 with projected net losses between $14.6 million and $11.6 million, amid ongoing macro-economic uncertainties.
Hersha Hospitality Trust (HT) announced the tax classification for its 2022 distributions of Common Shares and Series C, D, and E Preferred Shares. The total cash distribution per Common Share reached $0.600, with 97.83% classified as capital gains. Series C, D, and E Preferred Shares saw total distributions of $2.1485, $2.03125, and $2.03125, respectively, with similar capital gains classifications. The tax information is for federal income tax reporting and investors are urged to consult their tax advisors for individual treatment. The announcement reflects the company's ongoing commitment to shareholder returns amidst intricate tax implications.
Hersha Hospitality Trust (HT) will release its fourth-quarter 2022 financial results on February 15, 2023, following market closure. A conference call with CEO Neil H. Shah and CFO Ashish Parikh is scheduled for February 16, 2023, at 9:00 AM ET. The event will be broadcast live on the company’s website, and replays will be available afterward. Hersha operates a portfolio of 25 luxury hotels across coastal gateway and resort markets, totaling 3,811 rooms in locations such as New York and California. The company stresses the importance of reviewing risk factors in its SEC filings.
Hersha Hospitality Trust (HT) announced a special dividend of $0.50 per common share and limited partnership unit for the year ending December 31, 2022, alongside a regular cash dividend of $0.05 for Q4 2022. Both dividends are payable on January 18, 2023. Additionally, the Board declared preferred share dividends for Series C, D, and E shares. The decision follows $650M in strategic sales, generating nearly $200M in gains, enabling a significant refinancing and reducing debt. The company forecasts a year-end cash holding of $225M.
Hersha Hospitality Trust (HT) reported a strong third quarter 2022, achieving net income of $115.5 million, or $2.82 per share, compared to a net loss of $19.5 million in Q3 2021. Key highlights included 16% ADR growth compared to 2019, with an overall EBITDA margin increase of 249bps. The company's comparable RevPAR grew by 3.7% in September, surpassing 2019 figures. Hersha anticipates continued growth into Q4, despite potential macroeconomic risks. Recent hotel sales generated $650 million in proceeds, allowing for significant debt reduction and enhanced liquidity.
Hersha Hospitality Trust (HT) has successfully completed the sales of The Hotel Milo Santa Barbara and The Pan Pacific Seattle. The transactions are valued at approximately $650M, allowing Hersha to repay about $500M in debt and generate unrestricted cash of $120M. This strategic timing has capitalized on increased hotel cash flows in early 2022, aligning prices closer to the company's internal net asset values. The executive team emphasizes that these sales reflect a necessary realignment of the portfolio amidst a volatile market.
Hersha Hospitality Trust (NYSE: HT) has announced the retirement of its Founder and Chairman, Hasu P. Shah, effective December 31, 2022, after 38 years in the role. CEO Jay H. Shah will transition to Executive Chairman, while COO Neil H. Shah will assume the roles of President and CEO, effective January 1, 2023. The company aims for a smooth leadership transition, emphasizing operational streamlining and value creation for shareholders. Under Hasu's leadership, Hersha transformed from a single property to a significant publicly-traded REIT with a focus on sustainability and high-quality hospitality.
Hersha Hospitality Trust (HT) has announced a cash dividend of $0.05 per common share and limited partnership unit for Q3 2022, payable on October 17, 2022. The Board also declared dividends for Series C ($0.4297), Series D ($0.40625), and Series E ($0.40625) Preferred Shares, also payable on October 17, 2022. CEO Jay H. Shah cited strong portfolio performance and strategic transactions as key reasons for reinstating the dividend. The company is considering a special cash dividend for Q4 2022, depending on market conditions.
Hersha Hospitality Trust (NYSE: HT) announced the sale of two West Coast properties for $125 million, approximately $455,000 per key. The proceeds will be utilized to pay down $45 million of debt and for general corporate purposes, including dividend payments. CEO Jay H. Shah emphasized that these transactions will enhance operational flexibility and align with long-term strategic goals. The sales reflect a blended cap rate of 2.9% and an EBITDA multiple of 27.0x based on 2019 results. The deals are expected to close in Q4 2022, subject to customary conditions.
Hersha Hospitality Trust (NYSE: HT) will release its financial results for Q3 2022 after market close on October 26, 2022. A conference call to discuss the results is scheduled for October 27, 2022, at 9:00 AM ET, led by CEO Jay H. Shah, President Neil H. Shah, and CFO Ashish Parikh. Investors can access a live audio webcast on the Company’s website. The company operates 30 hotels totaling 4,544 rooms in key markets like New York and Miami, focusing on luxury and lifestyle offerings.
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