Hersha Hospitality Trust (HT) Reports In-Line Q3 AFFO

Hersha Hospitality Trust (NYSE: HT) reported Q3 AFFO of $0.13, in-line with the analyst estimate of $0.13. Revenue for the quarter came in at $113 million versus the consensus estimate of $109.6 million.

Mr. Jay H. Shah, Hersha’s Chief Executive Officer, stated, “Hersha’s third quarter performance clearly demonstrates the embedded growth and strategic value of our young, high quality, urban-transient portfolio. The consolidated portfolio’s 12.0% RevPAR growth was primarily the result of increasing transient demand in our concentrated urban gateway markets, which allowed our operators to drive a 6.9% increase in rate during the third quarter. The quarter’s operating results were further supported by our accretive acquisitions during the past year and the first full-quarter contribution of our two newly delivered development assets in Manhattan, which helped to drive a 31.2% increase in Hotel EBITDA. The early success of these properties demonstrates the resiliency and strength of the Manhattan market, with ample demand driving third quarter occupancy at the Hilton Garden Inn Midtown East and the Hampton Inn Financial District of 93.9% and 85.5%, respectively.”

Mr. Shah continued, “The delivery of our ground-up development projects and our large scale renovation projects, which were undertaken in the early part of the recovery, positions the Company to grow operating cash flow from rate-driven revenue growth and return capital to our shareholders. An early indication was the increase in our quarterly cash dividend by 16.7% to $0.07 per share in the third quarter, representing an annualized dividend rate of $0.28 per share. As we look towards the remainder of 2014 and into 2015, we expect the strength of our core markets, a collaborative management approach, and a willingness to pull appropriate levers to create shareholder value.”

For earnings history and earnings-related data on Hersha Hospitality Trust (HT) click here.

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