Hersha Hospitali Stock Price, News & Analysis

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.