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Hersha Hospitality Trust Reports Operating Results (10-Q)

August 06, 2012 | About:
10qk

10qk

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Hersha Hospitality Trust (HT) filed Quarterly Report for the period ended 2012-06-30.

Hersha Hospitality Trust has a market cap of $975.8 million; its shares were traded at around $4.97 with a P/E ratio of 12.6 and P/S ratio of 3.4. The dividend yield of Hersha Hospitality Trust stocks is 4.9%.

Highlight of Business Operations:

Our total revenues for the three months ended June 30, 2012 consisted of hotel operating revenues, interest income from our development loan program and other revenue. Hotel operating revenues were approximately 99.4% and 98.5% of total revenues for the three months ended June 30, 2012 and 2011, respectively. Hotel operating revenues are recorded for wholly owned hotels that are leased to our wholly owned TRS and hotels owned through joint venture interests that are consolidated in our financial statements. Hotel operating revenues increased $18,467, or 23.8%, to $96,136 for the three months ended June 30, 2012 compared to $77,669 for the same period in 2011. This increase in hotel operating revenues was primarily attributable to the acquisition of hotel properties consummated since June 30, 2011.

Total hotel operating expenses increased 29.3% to approximately $50,994 for the three months ended June 30, 2012 from $39,444 for the three months ended June 30, 2011. Consistent with the increase in hotel operating revenues, hotel operating expenses increased primarily due to the acquisitions consummated since June 30, 2011, as mentioned above. The acquisitions also resulted in an increase in depreciation and amortization to $14,144 for the three months ended June 30, 2012 from $12,612 for the three months ended June 30, 2011. Similarly, real estate and personal property tax and property insurance increased $308, or 6.3%, in the three months ended June 30, 2012 when compared to the same period in 2011 due to our acquisitions, which was partially offset by reductions resulting from our rigorous management of this expense along with a general overall increase in tax assessments and tax rates as the economy improves.

On February 23, 2012, we closed on the sale of 14 of our previously mentioned non-core hotel properties, and on May 8, 2012, we closed on the sale of the remaining 4 non-core hotel properties. The 18 assets were sold for a total sales price of $155,000, reduced the Company s consolidated mortgage debt by $61,298, and generated a gain on sale of $5,066, including a gain of $1,780 recorded during the three months ended June 30, 2012. See “Note 12 – Discontinued Operations” for more information.

Our total revenues for the six months ended June 30, 2012 consisted of hotel operating revenues, interest income from our development loan program and other revenue. Hotel operating revenues were approximately 99.2% and 98.2% of total revenues for the six months ended June 30, 2012 and 2011, respectively. Hotel operating revenues increased $34,186, or 27.0%, to $160,989 for the six months ended June 30, 2012 from $126,803 for the same period in 2011. This increase in hotel operating revenues was primarily attributable to the acquisitions consummated in 2012 and 2011 and improved lodging fundamentals in the markets where our hotels are located.

Total hotel operating expenses increased 29.1% to approximately $91,345 for the six months ended June 30, 2012 from $70,747 for the six months ended June 30, 2011. Consistent with the increase in hotel operating revenues, hotel operating expenses increased primarily due to the acquisitions consummated since June 30, 2011, as mentioned above. The acquisitions also resulted in an increase in depreciation and amortization to $27,585 for the six months ended June 30, 2012 from $24,748 for the six months ended June 30, 2011. Similarly, real estate and personal property tax and property insurance increased $857, or 9.1%, in the six months ended June 30, 2012 when compared to the same period in 2011 due to our acquisitions along and partially offset by rigorous management of these expenses.

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