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Hersha Hospitality Trust (Hersha Hospitality Trust) Gross Margin % : 30.67% (As of Sep. 2023)


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What is Hersha Hospitality Trust Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Hersha Hospitality Trust's Gross Profit for the three months ended in Sep. 2023 was $28.2 Mil. Hersha Hospitality Trust's Revenue for the three months ended in Sep. 2023 was $92.0 Mil. Therefore, Hersha Hospitality Trust's Gross Margin % for the quarter that ended in Sep. 2023 was 30.67%.


The historical rank and industry rank for Hersha Hospitality Trust's Gross Margin % or its related term are showing as below:

HT' s Gross Margin % Range Over the Past 10 Years
Min: -5   Med: 33.27   Max: 37.93
Current: 30.08


During the past 13 years, the highest Gross Margin % of Hersha Hospitality Trust was 37.93%. The lowest was -5.00%. And the median was 33.27%.

HT's Gross Margin % is not ranked
in the REITs industry.
Industry Median: 68.745 vs HT: 30.08

Hersha Hospitality Trust had a gross margin of 30.67% for the quarter that ended in Sep. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Hersha Hospitality Trust was 0.00% per year.


Hersha Hospitality Trust Gross Margin % Historical Data

The historical data trend for Hersha Hospitality Trust's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Hersha Hospitality Trust Gross Margin % Chart

Hersha Hospitality Trust Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 31.67 31.95 -5.00 25.89 32.93

Hersha Hospitality Trust Quarterly Data
Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 31.50 32.70 21.21 33.76 30.67

Competitive Comparison of Hersha Hospitality Trust's Gross Margin %

For the REIT - Hotel & Motel subindustry, Hersha Hospitality Trust's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Hersha Hospitality Trust's Gross Margin % Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Hersha Hospitality Trust's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Hersha Hospitality Trust's Gross Margin % falls into.



Hersha Hospitality Trust Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Hersha Hospitality Trust's Gross Margin for the fiscal year that ended in Dec. 2022 is calculated as

Gross Margin % (A: Dec. 2022 )=Gross Profit (A: Dec. 2022 ) / Revenue (A: Dec. 2022 )
=133.7 / 405.874
=(Revenue - Cost of Goods Sold) / Revenue
=(405.874 - 272.206) / 405.874
=32.93 %

Hersha Hospitality Trust's Gross Margin for the quarter that ended in Sep. 2023 is calculated as


Gross Margin % (Q: Sep. 2023 )=Gross Profit (Q: Sep. 2023 ) / Revenue (Q: Sep. 2023 )
=28.2 / 91.984
=(Revenue - Cost of Goods Sold) / Revenue
=(91.984 - 63.775) / 91.984
=30.67 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Hersha Hospitality Trust  (NYSE:HT) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Hersha Hospitality Trust had a gross margin of 30.67% for the quarter that ended in Sep. 2023 => Competition eroding margins


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Hersha Hospitality Trust Gross Margin % Related Terms

Thank you for viewing the detailed overview of Hersha Hospitality Trust's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Hersha Hospitality Trust (Hersha Hospitality Trust) Business Description

Traded in Other Exchanges
N/A
Address
44 Hersha Drive, Harrisburg, PA, USA, 17102
Hersha Hospitality Trust is a self-advised real estate investment trust in the hospitality sector, which owns and operates high-quality upscale hotels in urban gateway markets. Its hotels are located in the central business districts and dense metropolitan centers of New York City, Boston, Washington, DC, Philadelphia, Miami, Los Angeles, and San Diego. The company's revenue streams include Hotel revenue and Other revenue.
Executives
Hutchison Thomas J Iii director 44 HERSHA DRIVE, HARRISBURG PA 17102
Michael R Gillespie officer: Chief Accounting Officer 44 HERSHA DRIVE, HARRISBURG PA 17102
Michael A Leven director 2500 PEACHTREE ROAD, APT 801, ATLANTA GA 30305
Ashish R Parikh officer: Chief Financial Officer 44 HERSHA DRIVE, HARRISBURG PA 17102
Jay H Shah director, officer: Chief Executive Officer, other: Trustee 44 HERSHA DRIVE, HARRISBURG PA 17102
Neil H Shah officer: President and COO 44 HERSHA DRIVE, HARRISBURG PA 17102
Hasu P Shah director, officer: Chairman of the Board 44 HERSHA DRIVE, HARRISBURG PA 17102
Donald J Landry director 1492 LAKESHORE BLVD, SLIDELL LA 70461
David L Desfor officer: Treasurer & Corp. Secretary 44 HERSHA DRIVE, HARRISBURG PA 17102
John Sabin director 44 HERSHA DRIVE, HARRISBURG PA 17102
Jackson Hsieh director 2727 N HARWOOD STREET, SUITE 300, DALLAS TX 75201
Kiran P Patel director 44 HERSHA DRIVE, HARRISBURG PA 17102
Dianna Morgan director 909 SILVER LAKE BLVD, DOVER DE 19904
Ifis Ltd 10 percent owner FLORIDA 537, PISO 18?, BUENOS AIRES C1 C1005AAK
Eduardo S Elsztain 10 percent owner, other: Former Director BOLIVAR 108 1??P, BUENOS AIRES C1 00000