{"id":2782,"date":"2021-05-12T05:48:23","date_gmt":"2021-05-12T10:48:23","guid":{"rendered":"https:\/\/1reason.com\/re\/hersha-hospitality-trust-announces-first-quarter-2021-results\/2782\/"},"modified":"2021-05-13T00:48:23","modified_gmt":"2021-05-13T05:48:23","slug":"hersha-hospitality-trust-announces-first-quarter-2021-results","status":"publish","type":"post","link":"https:\/\/1reason.com\/re\/hersha-hospitality-trust-announces-first-quarter-2021-results\/2782\/","title":{"rendered":"Hersha Hospitality Trust Announces First Quarter 2021 Results"},"content":{"rendered":"
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First Quarter 2021 Financial Results<\/strong><\/p>\n

Net income applicable to common shareholders was $2.9 million, or $0.07 per diluted common share, in the first quarter 2021, compared to net loss applicable to common shareholders of ($29.1 million), or ($0.76) per diluted common share, in first quarter 2020. The increase in first quarter 2021 net income and net income per diluted common share was primarily due to approximately $48.3 million in realized gains from the disposition of hotel properties.<\/p>\n

AFFO in the first quarter 2021 decreased to ($15.9 million), compared to ($8.5 million) in the first quarter 2020. The decrease in AFFO was due to the impact of the COVID pandemic for all of the first quarter of 2021 while the pandemic only impacted the final month of the first quarter of 2020. AFFO per diluted common share and OP Unit in the first quarter 2021 was ($0.36). An explanation of certain non-GAAP financial measures used in this press release, including, among others, AFFO, as well as reconciliations of those non-GAAP financial measures, to GAAP net income, is included at the end of this press release.<\/p>\n

Mr. Jay H. Shah, Hersha\u2019s Chief Executive Officer, stated, \u201cOur first quarter operating results reflected increased demand, which coupled with the cost containment initiatives implemented across our hotels, resulted in a sequential increase in property cash flow from $133,000 in January to $3.7 million in March with RevPAR increasing 56% from January to March. A surge in leisure demand at our South Florida and coastal California resorts, and the first signs of recovery in our urban markets, drove performance. Our lifestyle-oriented hotels began hosting smaller social groups such as weddings and sports teams while our sales teams began conversations with large corporate clients on their return to office and business travel plans \u2014 indications that all segments of traveler are beginning to re-emerge. Results this quarter came in ahead of our expectations at the beginning of the year, with occupancies surpassing our internal forecast by more than 1,200 basis points and our portfolio RevPAR exceeding expectations by 34%. The strongest quarter-over-quarter performance was seen in our South Florida portfolio, as leisure demand to a warmer climate led to both the Parrot Key Hotel & Resort and Cadillac Hotel & Beach Club each generating more than a 2,000 basis point occupancy increase and ADR growth of 38% and 43%, respectively, compared to the fourth quarter 2020.\u201d<\/p>\n

Mr. Shah continued, \u201cIn February, we announced the completion of several initiatives to provide us with near and medium-term financial flexibility. Our announced asset sales and our unsecured notes facility with affiliates of the Goldman Sachs Merchant Bank enabled us to simultaneously pay down our 2021 term loan, amend the Revolving Credit Facility agreement, and extend the covenant waiver holiday through March 31, 2022. Last quarter, we also closed on the sales of four additional assets and we anticipate closing the sale of the Duane Street Hotel during the second quarter. Our increased financial flexibility from these bespoke solutions allowed us to clear our preferred dividend accrual during the first quarter and resume our quarterly preferred distributions. With our financing and liquidity needs addressed, we consolidated our focus on operational improvements \u2013\u2013 remobilizing bars & restaurants, ancillary revenue streams, and unique sales strategies \u2013\u2013 to capture market share during this demand resurgence. As we progress through the early stages of the new cycle, these efforts will continue to drive market leading cash flow and highlight our portfolio\u2019s significant operational leverage to the reopening recovery.\u201d<\/p>\n

Asset Sales <\/strong><\/p>\n

Year to-date 2021, the Company has completed the sales of four consolidated hotels for a total sale price of $178.5 million, before customary closing costs:<\/p>\n