Hersha Hospitality Trust (NYSE: HT), owner of upscale hotels in urban gateway markets, today announced that it has raised its full year 2012 outlook based on increased expectations for growth in revenue per available room (“RevPAR”) for its total consolidated hotel and same store consolidated hotel portfolios for 2012.
For the fourth quarter through November 30, 2012, RevPAR growth at the Company’s total consolidated and same store consolidated hotel portfolio is trending ahead of the Company’s prior outlook. For this two-month period, RevPAR increased 9.0% for the Company's total consolidated hotel portfolio (56 hotels) and 7.7% for the Company’s same-store hotel portfolio (52 hotels).
For the fourth quarter through November 30, 2012, the Company’s New York City (15 hotels) and Manhattan (12 hotels) same store hotel portfolios have realized RevPAR growth of 10.6% and 9.8%, respectively, compared to the prior year period and all hotels in the New York-New Jersey metropolitan area have experienced RevPAR growth approximating 20%.
“In light of the strong portfolio performance that we experienced in November and the positive booking trends we are seeing for December, we are raising our RevPAR growth outlook for the year,” commented Mr. Jay H. Shah, the Company’s Chief Executive Officer. “The improving trends, with particular strength in our New York City urban and Manhattan markets, have delivered robust rate-driven growth quarter to date. We are encouraged by the pickup that we have seen post the damaging effects of Hurricane Sandy. Both the continuing business transient and leisure transient strength has offset the losses from the storm and allowed us to exceed our internal forecasts for the fourth quarter. Based upon the booking pace for December, we anticipate strength through at least the end of the year.”
RevPAR for the two-month period ended November 30, 2012, as well as the Company’s 2012 outlook regarding RevPAR, excludes the Holiday Inn Express Wall Street which has been closed since October 24, 2012 due to damage caused by Hurricane Sandy and is expected to reopen in the first quarter of 2013.