Hersha Hospitality Trust (NYSE: HT, the “Company”), owner of upscale hotels in urban gateway markets, today announced results for the second quarter ended June 30, 2013.
Second Quarter 2013 Financial Results
Adjusted Funds from Operations (“AFFO”) in the second quarter increased by $2.0 million to $28.7 million, compared to $26.7 million for the second quarter of 2012. AFFO per diluted common share and unit of limited partnership interest in Hersha Hospitality Limited Partnership (“OP Unit”) was $0.14, in-line with the same quarter in 2012, due to a higher share count in 2013. The Company’s weighted average diluted common shares and OP Units outstanding were approximately 208.1 million in the second quarter 2013, up from approximately 196.3 million in the comparable quarter in 2012.
Net income applicable to common shareholders was $14.3 million for the second quarter ended June 30, 2013, compared to net income applicable to common shareholders of $13.1 million for the comparable quarter in 2012.“Our portfolio continues to post solid results, with strong occupancy, particularly in New York, and high absolute margins. Year-to-date RevPAR growth of 8.0% within our same store consolidated portfolio remains industry leading. Our year-over-year quarterly RevPAR growth was somewhat muted, however, as the Company faced tough comparables for transient travel in April as a result of the Easter holiday shift, a softer convention calendar in Boston and Philadelphia, as well as the impact from a slowdown in government travel due to sequestration in our Washington, D.C. metro market.” commented Mr. Jay H. Shah, the Company’s Chief Executive Officer. Mr. Shah continued, “We continue to believe that we are extremely well-positioned to be outsized beneficiaries of the continuing economic recovery currently underway. We believe that Hersha’s young, urban focused, and newly refreshed portfolio will benefit from increased transient travel which is forecasted to be the U.S. lodging industry’s sustained driver of RevPAR growth in the near-term. The Company will also benefit from its continued expansion in key gateway markets such as Miami and San Diego and the disposition of non-core assets. Moving forward, the Company will continue to focus on disposition opportunities, both to unlock value from capital recycling within our portfolio and to continue to strategically transition Hersha as the leading urban focused hospitality REIT in the sector.”
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