– February Results Outperform Forecasts –
– Asset Sale Closings for Two Hotels –
– Announces First Quarter and Accrued Preferred Dividend Distribution –
PHILADELPHIA, March 09, 2021 (GLOBE NEWSWIRE) — Hersha Hospitality Trust (NYSE: HT) (“Hersha” or the “Company”), owner of high-quality hotels in urban gateway markets and regional resort destinations, today announced an update for previously announced asset sales and operational results in February 2021.
February Operating Results
- Revenues exceeded internal forecasts by over 20%
- Second-consecutive month of positive property-level cash flow
- 51.2% occupancy across New York City portfolio
- 69.4% occupancy in South Florida
• 76.5% occupancy at Parrot Key Hotel & Villas
• 74.6% occupancy at Cadillac Hotel & Beach Club
- Year-over-year ADR growth achieved at California and Key West resorts
• 44.1% ADR growth to $419 at the Sanctuary Beach Resort
• 7.9% ADR growth to $429 at the Parrot Key Hotel & Villas
Hersha closed on the previously announced sale of two hotels for net proceeds totaling $58.0 million, before customary closing costs:
- The 153-room Capitol Hill Hotel in Washington, DC
- The 112-room Holiday Inn Express in Cambridge, MA
These closures, in addition to the previously announced closings of the Sheraton Wilmington and Courtyard Downtown San Diego, as well as the binding sales contracts on the Residence Inn Coconut Grove and Duane Street Hotel, will generate proceeds totaling $216.0 million, before customary closing costs. These six transactions were executed at an a 11.7x multiple and a 7.5% capitalization rate on 2019 Hotel EBITDA and net operating income, respectively.
These binding sales contracts remain subject to customary closing conditions and no assurance can be given that the transactions will close within the expected time frame, or at all.
Preferred Dividend Distribution
The Company announced its Board of Trustees has declared cash dividends on the Company’s Series C, Series D and Series E cumulative redeemable preferred stock reflecting accrued and unpaid dividends for the dividend periods ended April 15, 2020, July 15, 2020, October 15, 2020 and January 15, 2021. The Company will pay a cash dividend of $1.7188 per Series C Preferred Share, $1.625 per Series D Preferred Share, and $1.625 per Series E Preferred Share. These preferred share dividends are payable March 26, 2021 to holders of record as of March 19, 2021.
The Company also announced that its Board of Trustees declared a cash dividend of $0.4297 per Series C Preferred Share, $0.40625 per Series D Preferred Share, and $0.40625 per Series E Preferred Share for the first dividend period ending April 15, 2021. The preferred share dividends are payable April 15, 2021 to holders of record as of April 1, 2021.
“We are pleased to announce the payment of our preferred dividend accrual and the resumption of our quarterly preferred distributions. Our recently announced $200 million unsecured notes facility with affiliates of Goldman Sachs Merchant Bank and the closure of our four previously announced asset sales that generated net proceeds totaling $142 million combined with a clearer line of sight to recovering performance gives us the flexibility to further our business plan. Recent travel demand for our portfolio has outperformed our expectations and coupled with the asset management initiatives adopted over the past twelve months, has yielded positive property-level cash flow year-to-date. With our financing and liquidity needs fully addressed we will further turn our focus to portfolio outperformance in the early recovery,” stated Mr. Jay H. Shah, Hersha’s Chief Executive Officer.
Hersha Hospitality Trust (HT) is a self-advised real estate investment trust in the hospitality sector, which owns and operates high-quality hotels in urban gateway markets and regional resort destinations. The Company’s 38 hotels totaling 5,985 rooms are located in New York, Washington, DC, Boston, Philadelphia, South Florida and select markets on the West Coast. The Company’s common shares are traded on The New York Stock Exchange under the ticker “HT.” For more information on the Company, and the Company’s hotel portfolio, please visit the Company’s website at www.hersha.com
Forward Looking Statement
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, and, as such, may involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance to differ from those reflected in the forward-looking statement. For a description of factors that may cause the Company’s actual results or performance to differ from its forward-looking statements, please review the information under the heading “Risk Factors” included in the Company’s most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q filed by the Company with the Securities and Exchange Commission (“SEC”) and other documents filed by the Company with the SEC from time to time.
|Contact:||Ashish Parikh, Chief Financial Officer |
Greg Costa, Director of Investor Relations
Phone: (215) 238-1046