Hersha's RevPAR came in at $92.48, down from $111.96 during the same year-ago period, after an average daily rate decline of 12%, to $126.01, and a 4.8% decline in occupancy, to 73.4%. Operating revenues totaled $61.6 million, down from $67.6 million in last year's Q2.
The firm's hotels in New York City, which accounts for 35% of its portfolio, held up well in occupancy, at 91.3%, only dipping 10 basis points. But average daily rates plunged 28.8%, as the company competes with a flood of new hotels opening in the market at discounted rates.
Hersha sold interests in four assets during the quarter, for a total of $20.6 million. The properties are Hilton Garden Inn, in Gettysburg, PA; Four Points by Sheraton, in Revere, MA; and a Mainstay Suites and a Comfort Inn, both in Fredericksburg, MD.
"We continue to explore it pretty actively," said Jay Shah, Hersha's chief executive officer said of the sales market during the company's earnings call, but pointed out that deals are very difficult to get done in this environment and can take 12 to 16 months to close.
Also during the quarter, the company sold just under $14.3 million in shares to a subsidiary of Argentinean firm Inversiones y Representaciones Sociedad Anonima. Hersha owns 73 hotels with nearly 9,300 rooms in the Northeast, California and Arizona.
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