Hersha Hospitality Trust (NYSE: HT), owner of upscale hotels in urban gateway markets, today announced results for the third quarter ended September 30, 2012.
Third Quarter 2012 Financial Results
Net income applicable to common shareholders increased significantly by $27.7 million to $2.7 million for the third quarter ended September 30, 2012, compared to a net loss of $(25.0) million for the comparable quarter of 2011.
Adjusted Funds from Operations (“AFFO”) in the third quarter were $23.3 million, compared to $24.7 million for the third quarter of 2011. The decrease was driven largely by a $4.4 million reduction in Hotel EBITDA from the sale of the 18 asset non-core portfolio completed earlier in 2012. AFFO per diluted common share and unit of limited partnership interest in Hersha Hospitality Limited Partnership (“OP Unit”) were $0.11 compared to $0.14 in same quarter in 2011. The Company’s weighted average diluted common shares and OP Units outstanding was approximately 206.6 million in the third quarter of 2012, up from approximately 179.5 million in the comparable quarter of 2011.“Our portfolio delivered another quarter of rate-driven RevPAR growth in the majority of our key urban markets, although the unexpected weakness at some of our hotels in New York City had a disproportionate impact on our quarterly results,” commented Mr. Jay H. Shah, the Company’s Chief Executive Officer. “While the New York market was more challenging in the quarter, we are very encouraged by industry-leading contributions from our Boston and Philadelphia hotels, and the outperformance of our recently renovated Washington DC Urban and Metro hotels.” Mr. Shah concluded, “We remain confident in the strength and long term sustainability of the New York market and are encouraged to see fourth quarter trends tracking better than the third quarter. As evidenced by our most recent acquisition of the Hilton Garden Inn, in the Midtown East submarket, we are long term investors in New York and believe that it remains one of the best lodging markets in the country and one that should continue to outperform the overall industry. Our market leverage and asset management focus, combined with the favorable supply/demand environment and the embedded growth in our young portfolio of hotels, will allow Hersha to drive continued RevPAR growth.”
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