HERSHA HOSPITALITY TRUST
510 Walnut Street | 9th Floor
Philadelphia | PA | 19106
p. 215.238.1046 | f. 215.238.0157
HERSHA HOSPITALITY TRUST ANNOUNCES
THIRD QUARTER 2018 RESULTS
- Cadillac Hotel & Beach Club Opens Following Transformative Repositioning-
- Philadelphia and Boston Lead Outperformance -
- Asset Management Initiatives Result in Margin Expansion -
- Innovation Districts Drive Growth -
Philadelphia, PA, October 23, 2018 -- Hersha Hospitality Trust (NYSE: HT) (“Hersha,” “Company,” “we” or “our”), owner of high quality hotels in urban gateway markets and coastal destinations, today announced results for the third quarter ended September 30, 2018.
Third Quarter 2018 Financial Results
Net loss applicable to common shareholders was $3.2 million, or $0.09 per diluted common share, in third quarter 2018, compared to net loss applicable to common shareholders of $2.7 million, or $0.07 per diluted common share, in third quarter 2017.
Adjusted Funds from Operations (“AFFO”) in the third quarter 2018 increased to $29.6 million or $0.69 per diluted common share and OP Unit as compared to $0.58 in the third quarter 2017. Strong operational performance and $5.6 million of business interruption insurance drove AFFO growth despite being partially offset by the impact of Hurricane Florence, delayed openings and ramp-up expenses at the Cadillac Hotel & Beach Club and Parrot Key Hotel & Villas. 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.
Mr. Jay H. Shah, Hersha’s Chief Executive Officer, stated, “The third quarter yielded strong results in the majority of our markets as economic growth remains robust, corporate profits increase, and leisure demand trends continue to reflect strong consumer confidence. Fundamentals in New York City continue to improve and led to occupancy growth of 114 basis points to 96.6% for our portfolio during the third quarter. Booking pace in the fourth quarter supports our hotels finishing the year at historically high occupancy rates. Portfolio-wide EBITDA margins were strong in the third quarter, a result of the cost controls and asset management initiatives we implemented across the last few years. Excluding our Washington, DC portfolio, which was negatively impacted by Hurricane Florence and sluggish demand, comparable portfolio EBITDA margins were up 110 basis points.”
Mr. Shah continued, “We have completed the majority of our 2018 capital projects, highlighted most notably by the opening of the Cadillac Hotel & Beach Club as an Autograph Collection Hotel. Since the hotel was taken offline due to Hurricane Irma over one year ago, our asset management and property-level teams worked tirelessly to create a first-class asset on Miami Beach that as of this writing, holds the #1 TripAdvisor ranking among Miami Beach hotels. The lifestyle resort reopened after a full-scale renovation which included all guest rooms, three distinct restaurants & bars, meeting space, lobby, both pools and all landscaping.
510 Walnut Street 9th Floor | Philadelphia, PA 19106 | p. 215.238.1046 | f. 215.238.0157 1
The following information was filed by Hersha Hospitality Trust (HT) on Tuesday, October 23, 2018 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.