Calling the company's 2007 growth "very strong" during a conference call, Jay Shah, CEO, said "significant internal growth from both our stabilized and newer hotels contributed to our 16.1% revenue increase per available room." He also said RevPAR growth in the Hersha properties in the metro areas of New York City, Boston and Washington, DC rose 28.4%, 20.6% and 18.6%, respectively. That compared with overall industry estimates of 13.5%, 18.6%, and 7.4%, respectively for those same markets, he noted.
Just seven hotels were added to the Hersha portfolio in 2007, compared with 44 additions during the previous two years. "We purposely shifted our primary focus to internal growth and asset management in order to drive our portfolio RevPAR and hotel profitability," he said, adding that would be a "continuing priority in the years ahead."
During a Q and A session with Wall Street analysts, Shah acknowledged "many uncertain factors in the coming year." The company's 2008 guidance calls for consolidated same-store RevPAR growth of between 4% and 5%.
Neil Shah, president and COO, said Hersha is looking carefully at projections for new supply in its markets. He sees 3% or less new supply in the New York City/Manhattan market in 2008; 4% new supply in the Boston Market, primarily in the luxury segment, and little new supply in the Philadelphia market this year, followed by one new hotel in 2009 and another in 2010.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
