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Hersha's Bet on Metro NY Reaps Rewards

PHILADELPHIA-Operating revenues rose 66% in Q2, primarily from acquisitions, particularly the REIT's growing number of properties in metropolitan New York.

By Marita Thomas | Updated on August 09, 2007

(Read more on the debt and equity markets.)

PHILADELPHIA-Hersha Hospitality Trust reported significant growth in nearly all financial measures for this year’s second quarter. Net income rose to $6.6 million, up from $2.2 million in the same quarter a year ago. Operating income nearly doubled to $17.9 million versus $9.2 million in the second quarter of 2006, and operating revenues spiked 66% to $63.5 million, compared with $38.2 million in the prior-year quarter.

The upward trajectory is attributed primarily to the addition of 13 hotels to the portfolio over the past year, but also to double-digit RevPAR growth during the quarter ended June 30 and increases in occupancy and average daily rates. RevPAR for the locally-based hotel REIT’s 57 consolidated hotels rose 16.7% year-over-year to $104.04, driven by a 14% increase in ADR to $130.21 and occupancy of 79.9% for the quarter.

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