(Mark your calendars: RealShare Hotels 2011, Sept. 15th in New York City)
PHILADELPHIA-Hersha Hospitality Trust had a good quarter according to their recent quarterly results announced Aug. 4. They are up across the board and anticipating even more growth and a push for rate increases over the rest of the year and into 2012.
“We are pleased with our second quarter operating results and believe that these results are indicative of the strength of our core portfolio and the forwht prospects for the remainder of the year,” said Jay Shah, Hersha’s CEO in a quarterly statement. “The portfolio’s occupancy levels are approaching our historical peaks and have allowed us to strategically focus on pushing Average Daily Rate growth during the quarter.”
The REIT’s ADR jumped 8.9% to $149.02 as occupancy for the consolidated hotels grew to 77.07%, 32 bps above Q1. This led to an increased RevPAR throughout the 65 hotels in the portfolio to $115.79, just shy of a $10 bump year over year. Meanwhile the company’s EBITA swelled 24% to $37.1 million for the quarter ending June 30, 2011. That equates to $7.2 million above the previous year’s EBITA. The trust notes that a few payroll increases and food & beverage prices offset some of the gains and margins were squeezed for the same-store consolidated EBITA by repair and maintenance costs.
More specifically, the New York City portfolio, covering 14 properties, showed significant growth to RevPAR clocking an 8% increase to $18.77 holding a stable occupancy of 89.3%.
As far as its market activity, Hersha picked up the 152-room Capitol Hill Suits in Washington, DC for $47.5 million and the 260-room Marriott Courtyard Westside in Los Angeles, also for $182,500 per key. The REIT put the 175-room Hyatt Union Square in New York City under contract for $104.1 million, which is anticipated to close in 2012 when construction completes. There is also the acquisition of Hampton Inn in New York City which is supposed to close in 2012, while Hersha also disposed of the Comfort Inn in West Hanover, PA at at price of $5.25 million for the 81-room non-core asset.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- 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
*May exclude premium content© 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.
