Hersha Hospitality Trust Presents at SunTrust Robinson Humphrey, Inc's Lodging Conference 2013, Dec-04-2013
Nov 12 13
Hersha Hospitality Trust Presents at SunTrust Robinson Humphrey, Inc's Lodging Conference 2013, Dec-04-2013 . Venue: Mandarin Oriental, 776 Boylston Street, Boston, MA 02199, United States.
Hersha Hospitality Trust Announces Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended September 30, 2013; Provides Operating Guidance for the Fourth Quarter, Full Year of 2013 and Full Year of 2014; Announces Loss from Impairment of Depreciable Assets for the Third Quarter of 2013
Nov 6 13
Hersha Hospitality Trust announced unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2013. For the quarter, the company reported total revenues of $90,291,000 against $79,615,000 a year ago. Operating income was $13,568,000 against $13,595,000 a year ago. Income before income taxes was $3,456,000 against $3,139,000 a year ago. Income from continuing operations was $5,831,000 or $0.01 per diluted share against $3,139,000 or $0.00 per diluted share a year ago. Net loss applicable to common shareholders was $1,126,000 or $0.01 per diluted share against net income applicable to common shareholders of $2,673,000 or $0.01 per diluted share a year ago. Adjusted funds from operations (AFFO) in the third quarter increased by $3.3 million to $26.5 million, compared to $23.2 million for the third quarter of 2012. AFFO per diluted common share and unit of limited partnership interest in Hersha Hospitality Limited Partnership (OP Unit) was $0.13, an increase from AFFO of $0.11 per diluted common share and OP Unit reported in the same quarter in 2012. The loss reported in the third quarter was due to non-cash impairment charge on assets held for sale, which were reclassified to discontinued operations. Adjusted EBITDA was $40,668,000 against $39,253,000 a year ago. company’s third quarter same store RevPAR increased 3.5% to a new company record of $146.56, driven by a 2% ADR growth and occupancy growth of 120 basis points to 83.6%. Funds from operations applicable to common shares and partnership units were $23.97 million compared to $20.6 million for the last year.
For the nine months, the company reported total revenues of $246,312,000 against $216,593,000 a year ago. Operating income was $44,879,000 against $31,097,000 a year ago. Income from continuing operations was $17,560,000 or $0.02 per diluted share against loss of $1,309,000 or $0.05 per diluted share a year ago. Income before income taxes was $15,278,000 against $1,309,000 a year ago. Net income applicable to common shareholders was $65,000 or $0.00 per diluted share against $5,092,000 or $0.02 per diluted share a year ago. Adjusted funds from operations were $61,902,000 or $0.30 per diluted share against $52,655,000 or $0.27 per diluted share a year ago. Adjusted EBITDA was $107,513,000 against $104,182,000 a year ago. Funds from operations applicable to common shares and partnership units were $49.5 million compared to $42.7 million for the last year.
For the fourth quarter of 2013, the company's total consolidated RevPAR growth to be in the range of 1.0% to 2.0%. Total consolidated hotel EBITDA negative margins are expected to be 175 bps to 225 bps. Same-store consolidated negative RevPAR growth is expected to be 0.50% to 1.0%.
For the year 2013, the company's total consolidated RevPAR growth to be in the range of 4.5% to 5.5%. Total consolidated hotel EBITDA negative margins are expected to be 100 bps to 150 bps. Same-store consolidated RevPAR growth is expected to be 4.0% to 5.0%.
The company anticipates full year capital spending to be between $32 million to $34 million with a significant reduction in 2014.
For the quarter, the company announced loss from impairment of depreciable assets of $6,591,000.
Hersha Hospitality Trust Enters into Definitive Agreement to Purchase 122-Room Hotel Oceana in Santa Barbara
Nov 6 13
Hersha Hospitality Trust announced the company has entered into a definitive agreement to purchase the 122-room Hotel Oceana in Santa Barbara, California for $42 million. The Hotel Oceana is located on two oceanfront acres between Santa Barbara Harbor and Stearns Wharf, directly across from the beach on Cabrillo Boulevard, Santa Barbara's main thoroughfare, and within walking distance to downtown Santa Barbara. For the twelve-months ended September 30, 2013, the hotel had an average daily rate of $208.51 and occupancy of 93%. The Hotel Oceana requires no immediate capital expenditures and will be independently operated and managed by HHM and benefit from the company's active asset management program. The purchase price reflects a 7.6% capitalization rate on trailing-twelve month net operating income and an 8.5% - 9.5% capitalization rate on stabilized earnings. The Hotel Oceana acquisition will be funded with cash on hand, and includes the assumption of $25.3 million in mortgage debt, incurring interest at a fixed rate of 4.4% per year and maturing in 2023. In addition, the Hotel Oceana is subject to a 99-year ground lease with 86 years remaining. The proposed transaction is expected to close by the end of first quarter 2014, and is subject to a variety of closing conditions and the receipt of lender consent. As a result, there can be no assurance that the company will be able to consummate the acquisition on the schedule or on the terms described.