Hersha Hospitality Trust (HT) Approves $100M Stock Buyback Plan
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Hersha Hospitality Trust (NYSE: HT) announced that its Board of Trustees authorized a new share repurchase program of up to $100 million of the Company’s outstanding common shares. This new program will commence upon completion of the Company’s existing $100 million share repurchase program, of which approximately $23.1 million remains available for repurchases of the Company’s outstanding common shares through the end of 2016. The Company expects to complete the new repurchase program prior to December 31, 2017, unless extended by the Board of Trustees.
“The Company is on track to successfully dispose over $825 million of stabilized hotels this year. Our ability to execute these sales has provided the Company tremendous financial flexibility to acquire assets, de-lever and undertake additional share repurchases. The new $100 million share repurchase program underscores confidence in our young, differentiated and high-quality hotel portfolio, in addition to driving returns to our shareholders. We believe opportunistic share buybacks are an attractive use of available capital and a driver of share value when the share price is temporarily dislocated and at a material discount to our net asset value. Since 2014, we have repurchased $192.2 million of our common shares, representing approximately 20% of common shares outstanding. We intend to continue opportunistic share repurchases throughout the year to take advantage of capital market dislocations, remaining steadfast to our sustained and unique value creation philosophy and commitment to driving total shareholder returns,” stated Jay H. Shah, Hersha’s Chief Executive Officer.
The shares may be repurchased from time to time in open market transactions at prevailing market prices, in privately negotiated transactions or by other means in accordance with federal securities laws. The actual timing, number and value of shares repurchased under the program will be determined by management at its discretion and will depend on a number of factors, including the market price of the Company’s common shares and general market and economic conditions, applicable legal requirements, compliance with the terms of the Company’s outstanding indebtedness and the availability of capital for repurchases.
Year-to-date as of September 30, 2016, the Company has repurchased approximately 2.6 million common shares totaling $49.0 million, representing 5.9% of common shares outstanding.
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