Exhibit 99.1
 | HERSHA HOSPITALITY TRUST |
510 Walnut Street, 9th Floor Philadelphia, PA 19016 Phone: 215-238-1046 Fax: 215-238-0157 www.hersha.com |
For Immediate Release | |
| Contact: | Ashish Parikh, CFO |
| Ph: (215) 238-1046 | |
HERSHA HOSPITALITY ANNOUNCES
FIRST QUARTER 2007 EARNINGS
Year-over-Year First Quarter 2007 and Other Highlights
| · | Adjusted FFO (“AFFO”) Increased to $0.09 Per Diluted Share From $0.01 Per Diluted Share |
| · | Metro-New York City Presence Increased to 12 Hotels |
| · | Now Owns Interests in Seven Hotels Opened After January 1, 2006 |
| · | Consolidated RevPAR Improved 21.2% |
| · | Consolidated Adjusted EBITDA Increased 127% |
| · | Consolidated Adjusted EBITDA Margin Expanded 449 Basis Points |
| · | Company Reiterates 2007 AFFO Guidance |
PHILADELPHIA, PA--(Business Wire)—May 8, 2007-- Hersha Hospitality Trust (AMEX: HT) owner of nationally franchised premium full service and limited service hotels, today announced earnings for the first quarter ended March 31, 2007.
Financial Highlights for the First Quarter 2007
Net loss applicable to common shareholders for the first quarter of 2007 was ($5.4) million, or ($0.13) per common share as compared to a net loss of ($5.1) million, or ($0.25) per common share for the first quarter of 2006.
The increase in net loss on a year-over-year basis is primarily due to increased interest expense and additional depreciation and amortization expense from the Company’s property acquisitions. Partially offsetting this was the growth of Hersha’s operating income. Operating income for the three months ended March 31, 2007 was $5.8 million compared to $1.9 million for the same period in 2006. The increase in operating income resulted from strong revenue results from growth in average daily rate (ADR), partial stabilization of the Company’s newer assets and acquisitions that have increased the scale of Hersha’s operations enabling the Company’s to leverage the absorption of administrative costs. Results for the first quarter of 2007 also include approximately $0.02 per share of expense related to the accrual of performance-based executive compensation to be paid in the second quarter of 2007. Adjusted funds from operations (AFFO) for the first quarter of 2007 increased to $0.09 per diluted common share and unit from $0.01 per diluted common share and unit for the same quarter of 2006.
Mr. Jay H. Shah, Chief Executive Officer, commented, “We are pleased with our 2007 first quarter results, considering we had a soft start to the quarter and seven of the 71 hotel interests we own are still in the early ramp-up phase. We continue to generate EBITDA growth from our portfolio of highly attractive metro-New York City hotels and from strong hotels like our Summerfield Suites portfolio. Furthermore, our asset management group performed particularly well with several of our Management companies, notably LodgeWorks, Jiten Management and Hersha Hospitality Management, creating additional shareholder value.”
For the three-month period ended March 31, 2007, consolidated total hotel operating revenues increased 94% to $46.4 million from $23.9 million in the first quarter of 2006 driven primarily by hotel acquisitions and growth in room revenues. RevPAR for the Company’s consolidated hotels (56 hotels) increased 21.2% on a year-over-year basis to $77.29 driven by an 18.4% increase in ADR to $119.10 and a 2.4% improvement in occupancy to 64.89% for the quarter. The strong growth in RevPAR is partly due to the addition of the LodgeWorks portfolio this quarter which provided the Company a presence in the California and Arizona markets.
Gross operating profit (GOP) margins for the Company’s consolidated hotels increased approximately 380 basis points to 40.6% from 36.8%, as compared to the first quarter of 2006. GOP margins improved as a result of stronger top-line performance and the impact of rate based revenue growth. Adjusted EBITDA for consolidated hotels increased 127% to $14.5 million for the first quarter of 2007. Adjusted EBITDA margins for the quarter increased 449 basis points to 31.2% for the Company’s consolidated hotels portfolio.
On a same-store basis for Hersha’s consolidated hotels (36 hotels), RevPAR for the first quarter of 2007 increased 6.9% on a year-over-year basis to $70.43 driven by an 8.3% increase in ADR to $112.52, which was slightly offset by a 1.3% decline in occupancy to 62.59%. The occupancy decline was partly due to the significant renovations at nine owned hotels, producing a negative revenue impact of approximately $0.4 million. Same-store Adjusted EBITDA for the first quarter of 2007 increased 10.6% to $5.8 million. The Company’s same-store Adjusted EBITDA margin increased 102 basis points to 28.1% for the first quarter of 2007, as compared to the first quarter of 2006. The Company’s same-store EBITDA margins were strong despite the negative impact of the increased operating costs from ongoing renovations at nine hotels and higher than forecasted utility costs.
Other First Quarter 2007 Highlights
| v | In January, the Company completed the purchase of three hotels, which included the 100-room Residence Inn Langhorne located in metro Philadelphia, PA, the 80-room Holiday Inn Express located in Chester, NY and the 78-room Residence Inn located in Carlisle, PA for a total of $34.6 million. |
| v | In February, Hersha completed the purchase of the 65-room Hampton Inn Seaport located in New York City for $27.6 million and a 50% interest in the operations of the 228-room Holiday Inn Express located in Chelsea, New York City. |
These transactions are detailed in the supplemental schedules at the end of this release and posted to the “presentations and supplemental schedules” page of the Company’s Web site.
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Balance Sheet
At March 31, 2007, Hersha Hospitality Trust had approximately $664.7 million of total consolidated debt outstanding, which included approximately $51.5 million of Trust Preferred Securities. Fixed rate debt, including variable rate debt fixed by an interest rate swap, amounted to approximately 94.8% of total debt. The weighted average interest rate on all this fixed rate debt was approximately 6.24% for the first quarter, as compared to 6.23% for the fourth quarter of 2006. The weighted average life to maturity of the Company’s debt was 9.0 years. Total common shares and units of limited partnership interest of Hersha Hospitality Limited Partnership, the Company’s operating partnership subsidiary, outstanding at the end of March 31, 2007 were 45.3 million.
The Company ended the first quarter of 2007 with $74.2 million in development loans and land leases outstanding to seven hotel development projects.
Dividend
For the first quarter of 2007, Hersha Hospitality Trust declared common share and limited partnership unit dividends of $0.18 per common share and unit. The Company’s common dividend represents the 32nd consecutive quarterly dividend at this amount since the Company’s 1999 initial public offering and represents a yield of approximately 6.0% based upon the closing price of Hersha Hospitality Trust stock on May 7, 2007. Hersha’s annualized dividend of $0.72 per common share is approximately 62.0% of the Company’s forecasted AFFO for the fiscal year ending December 31, 2007. The Board of Trustees also declared a first quarter cash dividend of $0.50 per Series A Preferred Share.
Financial Outlook for 2007
Assuming a continued strong U.S. economy and limited supply growth in its markets, the Company anticipates that its current portfolio will contribute to another year of strong growth in AFFO in 2007. The Company is updating its financial guidance for the full year ended December 31, 2007 as follows:
Net income available to common shareholders is expected to be $8.5 million to $10.5 million, or $0.19 to $0.23 per weighted average diluted share outstanding. This is revised from previous financial guidance due to increased depreciation and amortization from the acquisition of hotels.
The Company is reiterating the following financial guidance:
| · | Adjusted EBITDA of $110.0 million to $112.0 million |
| · | AFFO of $1.14 to $1.18 per weighted average diluted share outstanding |
The Company’s expectations for net income available to common shareholders, net income available to common shareholders per weighted average diluted share outstanding, Adjusted EBITDA and AFFO per diluted share for the full year ended December 31, 2007 are based upon the Company achieving consolidated portfolio RevPAR growth of 12% to 14%, as compared to the full year 2006, across the Company’s consolidated portfolio. Same-store consolidated RevPAR growth is expected to be 6.5% to 8.5%.
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Mr. Shah concluded, “Our financial guidance for 2007 reflects our optimism that the improved operating and market fundamentals that we saw at the end of the first quarter and in April continues for the remainder of the year and that our management company partners maintain a productive pace of rate-based growth. Having built a portfolio of young, urban upscale and extended-stay hotels in attractive metro markets, we are intensely focused on maximizing our internal growth prospects in 2007 and in years to come.”
First Quarter 2007 Earnings Conference Call
The Company will host a conference to discuss its financial results tomorrow, Wednesday, May 9, 2007 at 10:00 AM Eastern time. Hosting the call will be Mr. Jay H. Shah, Chief Executive Officer, and Mr. Ashish Parikh, Chief Financial Officer.
The live conference call can be accessed by dialing (800) 811-8845 or for international participants (913) 981-4905. A replay of the call will be available from May 9, 2007, through May 23, 2007. The replay can be accessed by dialing (888) 203-1112 or for international participants (719) 457-0820. The passcode for the call and the replay is 8748628.
About Hersha Hospitality
Hersha Hospitality Trust is a self-advised real estate investment trust, which owns interests in 71 hotels, primarily along the Northeast Corridor from Boston to Washington DC. The Company also owns hotels in Northern California and Scottsdale, Arizona. Hersha focuses on high quality upscale hotels in high barrier to entry markets. More information on the Company and its portfolio of hotels is available on Hersha’s Web site at http://www.hersha.com.
Forward Looking Statement
Certain matters within this press release are discussed using forward-looking language as specified in the Private Securities Litigation Reform Act of 1995, and, as such, may involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance to differ from those projected in the forward-looking statement. For a description of these factors, please review the information under the heading “Risk Factors” included in our Annual Report on Form 10-K for the year ended December 31, 2006, filed with the Securities Exchange Commission (SEC).
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HERSHA HOSPITALITY TRUST | ||||||||
Summary Results | ||||||||
(in thousands, except shares and per share data) | ||||||||
Three Months Ended | ||||||||
March 31, 2007 | March 31, 2006 | |||||||
Revenue: | ||||||||
| Hotel Operating Revenues | $ | 46,383 | $ | 23,925 | ||||
| Interest Income from Development Loans | 1,303 | 365 | ||||||
| Land Lease Revenue | 1,088 | - | ||||||
| Hotel Lease Revenue | 137 | - | ||||||
| Other Revenue | 142 | 178 | ||||||
Total Revenues | 49,053 | 24,468 | ||||||
Expenses: | ||||||||
| Hotel Operating Expenses | 29,069 | 15,958 | ||||||
| Hotel Ground Rent | 249 | 162 | ||||||
| Real Estate and Personal Property Taxes and Property Insurance | 2,896 | 1,487 | ||||||
| Land Lease Expense | 614 | - | ||||||
| General and Administrative | 2,211 | 1,164 | ||||||
| Depreciation and Amortization | 8,240 | 3,796 | ||||||
Total Operating Expenses | 43,279 | 22,567 | ||||||
Operating Income | 5,774 | 1,901 | ||||||
| Interest Income | 137 | 213 | ||||||
| Interest Expense | 10,310 | 5,618 | ||||||
| Loss on Debt Extinguishment | - | 255 | ||||||
(Loss) Income before income (loss) from Unconsolidated Joint Venture Investments, Minority Interests and Discontinued Operations | (4,399 | ) | (3,759 | ) | ||||
Income (loss) from Unconsolidated Joint Venture Investments | (838 | ) | (1,110 | ) | ||||
(Loss) Income before Minority Interests and Discontinued Operations | (5,237 | ) | (4,869 | ) | ||||
Distributions to Preferred Unitholders | - | - | ||||||
Income (Loss) allocated to Minority Interest in Continuing Operations | (999 | ) | (1,015 | ) | ||||
(Loss) Income from Continuing Operations | (4,238 | ) | (3,854 | ) | ||||
Discontinued Operations (Note 12): | ||||||||
| Gain on Disposition of Hotel Properties | - | - | ||||||
| Income (Loss) from Discontinued Operations | - | (30 | ) | |||||
Income (Loss) from Discontinued Operations | - | (30 | ) | |||||
Net (Loss) Income | (4,238 | ) | (3,884 | ) | ||||
| Preferred Distributions | 1,200 | 1,200 | ||||||
Net (Loss) Income applicable to Common Shareholders | $ | (5,438 | ) | $ | (5,084 | ) | ||
Basic earnings per share | ||||||||
(Loss) income from continuing operations applicable to common shareholders | $ | (0.13 | ) | $ | (0.25 | ) | ||
| Discontinued Operations | - | - | ||||||
Net (Loss) Income applicable to common shareholders | $ | (0.13 | ) | $ | (0.25 | ) | ||
Diluted earnings per share | ||||||||
(Loss) income from continuing operations applicable to common shareholders | $ | (0.13 | ) | $ | (0.25 | ) | ||
| Discontinued Operations | - | - | ||||||
Net (Loss) Income applicable to common shareholders | $ | (0.13 | ) | $ | (0.25 | ) | ||
Weighted Average Common Shares Outstanding | ||||||||
| Basic | 40,537,851 | 20,308,225 | ||||||
| Diluted | 40,537,851 | 20,308,225 | ||||||
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HERSHA HOSPITALITY TRUST | ||||||||
Balance Sheet | ||||||||
(in thousands, except shares and per share data) | ||||||||
March 31, 2007 | December 31, 2006 | |||||||
Assets: | ||||||||
| Investment in Hotel Properties, net of Accumulated Depreciation | $ | 866,669 | $ | 807,784 | ||||
| Investment in Joint Ventures | 55,077 | 50,234 | ||||||
| Development Loan Receivables | 55,016 | 47,016 | ||||||
| Cash and Cash Equivalents | 8,369 | 10,316 | ||||||
| Escrow Deposits | 15,059 | 14,927 | ||||||
| Hotel Accounts Receivable, net of allowance for doubtful accounts of $64 and $30 | 8,276 | 4,608 | ||||||
| Deferred Costs, net of Accumulated Amortization of $1,888 and $1,543 | 8,111 | 7,525 | ||||||
| Due from Related Parties | 1,217 | 4,930 | ||||||
| Intangible Assets, net of Accumulated Amortization of $655 and $618 | 5,762 | 5,594 | ||||||
| Other Assets | 24,324 | 15,274 | ||||||
Total Assets | $ | 1,047,880 | $ | 968,208 | ||||
Liabilities and Shareholders’ Equity: | ||||||||
| Line of Credit | $ | 45,550 | $ | 24,000 | ||||
| Mortgages and Notes Payable, net of unamortized discount of $88 and $1,312 | 619,109 | 556,542 | ||||||
| Accounts Payable, Accrued Expenses and Other Liabilities | 16,520 | 14,740 | ||||||
| Dividends and Distributions Payable | 9,144 | 8,985 | ||||||
| Due to Related Parties | 2,160 | 3,297 | ||||||
Total Liabilities | $ | 692,483 | $ | 607,564 | ||||
Minority Interests: | ||||||||
| Common Units | $ | 29,834 | $ | 25,933 | ||||
| Interest in Consolidated Joint Ventures | 2,553 | 3,092 | ||||||
Total Minority Interests | 32,387 | 29,025 | ||||||
Shareholders' Equity: | ||||||||
| Preferred Shares - 8% Series A, $.01 Par Value, 10,000,000 Shares Authorized, 2,400,000 Shares Issued and Outstanding at March 31, 2007 and December 31, 2006 (Aggregate Liquidation Preference $60,000 at March 31, 2007 and December 31, 2006, respectively) | 24 | 24 | ||||||
| Common Shares - Class A, $.01 Par Value, 50,000,000 Shares Authorized, 40,771,593 and 40,671,950 Shares Issued and Outstanding at March 31, 2007 and December 31, 2006, respectively | 408 | 405 | ||||||
| Common Shares - Class B, $.01 Par Value, 50,000,000 Shares Authorized, None Issued and Outstanding | - | - | ||||||
| Accumulated Other Comprehensive Income | 187 | 233 | ||||||
| Additional Paid-in Capital | 385,803 | 381,592 | ||||||
| Distributions in Excess of Net Income | (63,412 | ) | (50,635 | ) | ||||
Total Shareholders' Equity | 323,010 | 331,619 | ||||||
Total Liabilities and Shareholders’ Equity | $ | 1,047,880 | $ | 968,208 | ||||
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FFO and GAAP Reconciliation
The National Association of Real Estate Investment Trusts (“NAREIT”) developed Funds from Operations (“FFO”) as a non-GAAP financial measure of performance of an equity REIT in order to recognize that income-producing real estate historically has not depreciated on the basis determined under GAAP. We calculate FFO applicable to common shares and Partnership units in accordance with the April 2002 National Policy Bulletin of NAREIT, which we refer to as the White Paper. The White Paper defines FFO as net income (loss) (computed in accordance with GAAP) excluding extraordinary items as defined under GAAP and gains or losses from sales of previously depreciated assets, plus certain non-cash items, such as depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. Our interpretation of the NAREIT definition is that minority interest in net income (loss) should be added back to (deducted from) net income (loss) as part of reconciling net income (loss) to FFO. Our FFO computation may not be comparable to FFO reported by other REITs that do not compute FFO in accordance with the NAREIT definition, or that interpret the NAREIT definition differently than we do.
The GAAP measure that we believe to be most directly comparable to FFO, net income (loss) applicable to common shares, includes depreciation and amortization expenses, gains or losses on property sales, minority interest and preferred dividends. In computing FFO, we eliminate these items because, in our view, they are not indicative of the results from our property operations.
Hersha also presents Adjusted Funds from Operations (AFFO), which reflects FFO in accordance with the NAREIT definition further adjusted by:
| · | adding back write-offs of deferred financing costs on debt extinguishment, both for consolidated and unconsolidated properties; |
| · | adding back amortization of deferred financing costs; |
| · | adding back non-cash stock expense; |
| · | adding back FFO attributed to our partners in consolidated joint ventures; and |
| · | making adjustments to ground lease payments, which are required by GAAP to be amortized on a straight-line basis over the term of the lease, to reflect the actual lease payment. |
FFO and AFFO do not represent cash flows from operating activities in accordance with GAAP and should not be considered an alternative to net income as an indication of Hersha’s performance or to cash flow as a measure of liquidity or ability to make distributions. We consider FFO and AFFO to be meaningful, additional measures of our operating performance because they exclude the effects of the assumption that the value of real estate assets diminishes predictably over time, and because they are widely used by industry analysts as a performance measures. We show both FFO from consolidated hotel operations and FFO from unconsolidated joint ventures because we believe it is meaningful for the investor to understand the relative contributions from our consolidated and unconsolidated hotels. The display of both FFO from consolidated hotels and FFO from unconsolidated joint ventures allows for a detailed analysis of the operating performance of our hotel portfolio by management and investors. We present FFO and AFFO applicable to common shares and Partnership units because our Partnership units are redeemable for common shares. We believe it is meaningful for the investor to understand FFO applicable to all common shares and Partnership units.
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The following table reconciles FFO and AFFO for the periods presented to the most directly comparable GAAP measure, net income, for the same periods:
HERSHA HOSPITALITY TRUST | ||||||||
Adjusted Funds from Operations (AFFO) | ||||||||
(in thousands, except shares and per share data) | ||||||||
| Three Months Ended | ||||||||
| March 31, 2007 | March 31, 2006 | |||||||
| Net (loss) income applicable to common shares | $ | (5,438 | ) | $ | (5,084 | ) | ||
| Income (loss) allocated to minority interest | (999 | ) | (1,015 | ) | ||||
| Income (loss) of discontinued operations allocated to minority interest | - | (5 | ) | |||||
| (Income) loss from unconsolidated joint ventures | 838 | 1,110 | ||||||
| Depreciation and amortization | 8,240 | 3,796 | ||||||
| Depreciation and amortization from discontinued operations | - | 259 | ||||||
| FFO related to the minority interests in consolidated joint ventures | 198 | 186 | ||||||
Funds from consolidated hotel operations applicable to common shares and Partnership units | 2,839 | (753 | ) | |||||
| Income (Loss) from Unconsolidated Joint Ventures | (838 | ) | (1,110 | ) | ||||
| Add: | ||||||||
| Depreciation and amortization of purchase price in excess of historical cost | 494 | 474 | ||||||
| Interest in depreciation and amortization of unconsolidated joint venture | 1,192 | 956 | ||||||
Funds from unconsolidated joint ventures operations applicable to common shares and Partnership units | 848 | 320 | ||||||
Funds from Operations applicable to common shares and Partnership units | 3,687 | (434 | ) | |||||
| Add: | ||||||||
| FFO related to the minority interests in consolidated joint ventures | (198 | ) | (186 | ) | ||||
| Amortization of deferred financing costs | 345 | 213 | ||||||
| Deferred financing costs written off in debt extinguisment | - | 255 | ||||||
| Interest in deferred financing costs written off in unconsolidated joint venture debt extinguisment | - | 207 | ||||||
| Amortization of original issue discount on assumed debt | 15 | - | ||||||
| Non cash stock expense | 107 | 56 | ||||||
| Straight-line Amortization of ground lease expense | 66 | 61 | ||||||
Adjusted Funds from Operations | $ | 4,022 | $ | 172 | ||||
| AFFO per Diluted Weighted Average Common Shares and Units Outstanding | $ | 0.09 | $ | 0.01 | ||||
| Diluted Weighted Average Common Shares and Units Outstanding | 45,085,158 | 23,535,145 | ||||||
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HERSHA HOSPITALITY TRUST | ||||||||
Adjusted Funds from Operations (FFO) - 2007 FORECAST RECONCILIATION | ||||||||
(in thousands, except shares and per share data) | ||||||||
| Low | High | |||||||
| Twelve Months Ending | ||||||||
| 12/31/2007 | 12/31/2007 | |||||||
| Net Income applicable to common shares | $ | 8,500 | $ | 10,500 | ||||
| Less: | ||||||||
| (Income) from Unconsolidated Joint Ventures | (2,200 | ) | (2,450 | ) | ||||
| FFO related to the minority interests in consolidated joint ventures | (750 | ) | (1,250 | ) | ||||
| Add: | ||||||||
| Depreciation and amortization | 34,000 | 34,000 | ||||||
Funds from Consolidated Hotel Operations | 39,550 | 40,800 | ||||||
| Income from Unconsolidated Joint Ventures | 2,200 | 2,450 | ||||||
| Add: | ||||||||
| Depreciation and amortization | 6,613 | 6,613 | ||||||
Funds from Unconsolidated Joint Ventures Operations | 8,813 | 9,063 | ||||||
Funds from Operations | 48,363 | 49,863 | ||||||
| Add: | ||||||||
| Income allocated to minority interest in our operating partnership | 1,200 | 1,500 | ||||||
| Amortization of deferred financing costs | 1,600 | 1,600 | ||||||
| Non cash stock expense | 430 | 430 | ||||||
| Amortization of ground lease expense | 265 | 265 | ||||||
Adjusted Funds from Operations | $ | 51,858 | $ | 53,658 | ||||
| Diluted Weighted Average Common Shares and Units Outstanding | 45,425,000 | 45,425,000 | ||||||
| Adjusted FFO per Diluted Weighted Average Common Shares and Units Outstanding | $ | 1.14 | $ | 1.18 | ||||
EBITDA and GAAP Reconciliation
Earnings Before Interest, Taxes, and Depreciation and Amortization (EBITDA) is a non-GAAP financial measure within the meaning of the Securities and Exchange Commission rules. Our interpretation of Adjusted EBITDA is that EBITDA derived from our investment in unconsolidated joint ventures should be added back to net income (loss) as part of reconciling net income (loss) to Adjusted EBITDA. Our Adjusted EBITDA computation may not be comparable to EBITDA reported by other companies that interpret the definition of EBITDA differently than we do. Management believes EBITDA to be a meaningful measure of a REIT's performance and that it should be considered along with, but not as an alternative to, net income, cash flow, FFO and AFFO, as a measure of the company's operating performance.
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HERSHA HOSPITALITY TRUST | ||||||||
Adjusted EBITDA | ||||||||
(in thousands, except shares and per share data) | ||||||||
| Three Months Ended | ||||||||
| March 31, 2007 | March 31, 2006 | |||||||
| Net Income applicable to common shares | $ | (5,438 | ) | $ | (5,084 | ) | ||
| Less: | ||||||||
| Loss from Unconsolidated Joint Ventures | 838 | 1,110 | ||||||
| Interest income | (137 | ) | (213 | ) | ||||
| Add: | ||||||||
| Loss allocated to minority interest for continuing operations | (999 | ) | (1,015 | ) | ||||
| Income (Loss) allocated to minority interest for discontinued operations and gain on disposition of hotel properties | - | (5 | ) | |||||
| Interest expense from continuing operations | 10,310 | 5,618 | ||||||
| Interest expense from discontinued operations | - | 238 | ||||||
| Deferred financing costs written off in debt extinguishment | - | 255 | ||||||
| Distributions to Series A Preferred Shareholders | 1,200 | 1,200 | ||||||
| Depreciation and amortization from continuing operations | 8,240 | 3,796 | ||||||
| Depreciation from discontinued operations | - | 259 | ||||||
| Amortization of ground lease expense | 66 | 61 | ||||||
Adjusted EBITDA from consolidated hotel operations | 14,080 | 6,220 | ||||||
| Income (Loss) from Unconsolidated Joint Ventures | (838 | ) | (1,110 | ) | ||||
| Add: | ||||||||
| Depreciation and amortization of purchase price in excess of historical cost | 494 | 474 | ||||||
| Adjustment for interest in interest expense, depreciation and amortization of unconsolidated joint venture | 4,242 | 3,274 | ||||||
| Deferred financing costs written off in debt extinguishment | - | 207 | ||||||
Adjusted EBITDA from unconsolidated joint venture operations | 3,898 | 2,845 | ||||||
Adjusted EBITDA | $ | 17,978 | $ | 9,065 | ||||
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HERSHA HOSPITALITY TRUST | ||||||||
Adjusted EBITDA - 2007 FORECAST RECONCILIATION | ||||||||
(in thousands, except shares and per share data) | ||||||||
| Twelve Months Ended | ||||||||
| December 31, 2007 | December 31, 2007 | |||||||
| Net Income applicable to common shares | $ | 8,500 | $ | 10,500 | ||||
| Less: | ||||||||
| Income from Unconsolidated Joint Ventures | (2,200 | ) | (2,450 | ) | ||||
| Interest income | (200 | ) | (200 | ) | ||||
| Add: | ||||||||
| Income allocated to minority interest in common units | 1,200 | 1,500 | ||||||
| Interest expense | 40,750 | 40,750 | ||||||
| Distributions to Series A Preferred Shareholders | 4,800 | 4,800 | ||||||
| Depreciation and amortization from continuing operations | 34,000 | 34,000 | ||||||
| Amortization of deferred financing costs | 1,600 | 1,600 | ||||||
| Non cash stock expense | 430 | 430 | ||||||
| Amortization of ground lease expense | 265 | 265 | ||||||
Adjusted EBITDA from consolidated hotel operations | 89,145 | 91,195 | ||||||
| Income (Loss) from Unconsolidated Joint Ventures | 2,200 | 2,450 | ||||||
| Add: | ||||||||
| Interest expense | 11,850 | 11,850 | ||||||
| Depreciation and amortization of purchase price in excess of historical cost | 1,800 | 1,800 | ||||||
| Interest in depreciation and amortization of unconsolidated joint venture | 5,250 | 5,250 | ||||||
Adjusted EBITDA from unconsolidated joint venture operations | 21,100 | 21,350 | ||||||
Adjusted EBITDA | $ | 110,245 | $ | 112,545 | ||||
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Supplemental Schedules
The company has included supplemental schedules as an addendum to this press release in order to provide additional disclosure and financial information for the benefit of the company's stakeholders.
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HERSHA HOSPITALITY TRUST | ||||||||||||
KEY PERFORMANCE INDICATORS | ||||||||||||
March 31, 2007 | ||||||||||||
(Unaudited) | ||||||||||||
CONSOLIDATED HOTELS: | ||||||||||||
| (Recorded from date of acquisition or investment) | (2007 Includes 56 Hotels 2006 includes 41 Hotels) | |||||||||||
Three Months Ended | ||||||||||||
March 31, | ||||||||||||
2007 | 2006 | % Variance | ||||||||||
| Rooms Available | 564,460 | 339,437 | ||||||||||
| Rooms Occupied | 366,283 | 215,092 | ||||||||||
| Occupancy | 64.89 | % | 63.37 | % | 2.4 | % | ||||||
| Average Daily Rate (ADR) | $ | 119.10 | $ | 100.61 | 18.4 | % | ||||||
| Revenue Per Available Room (RevPAR) | $ | 77.29 | $ | 63.75 | 21.2 | % | ||||||
| Room Revenues | $ | 43,624,596 | $ | 21,640,706 | ||||||||
| Food & Beverage | $ | 1,588,420 | $ | 1,740,148 | ||||||||
| Other Revenues | $ | 1,170,266 | $ | 544,579 | ||||||||
| Total Revenues | $ | 46,383,283 | $ | 23,925,432 | ||||||||
| Discontinued Assets | $ | 0 | $ | 1,952,773 | ||||||||
| EBITDA | $ | 14,453,387 | $ | 6,380,174 | ||||||||
| EBITDA Margin | 31.2 | % | 26.7 | % | ||||||||
| EBITDA Margin Growth | 4.49 | % | ||||||||||
SAME STORE CONSOLIDATED HOTELS: | (Includes 36 Hotels for both 2007 and 2006) | |||||||||||
| (Owned for the entire reporting period) | Three Months Ended | |||||||||||
March 31, | ||||||||||||
2007 | 2006 | % Variance | ||||||||||
| Rooms Available | 273,374 | 273,510 | ||||||||||
| Rooms Occupied | 171,115 | 173,502 | ||||||||||
| Occupancy | 62.59 | % | 63.44 | % | -1.3 | % | ||||||
| Average Daily Rate (ADR) | $ | 112.52 | $ | 103.91 | 8.3 | % | ||||||
| Revenue Per Available Room (RevPAR) | $ | 70.43 | $ | 65.92 | 6.9 | % | ||||||
| Room Revenues | $ | 19,254,289 | $ | 18,028,444 | ||||||||
| Food & Beverage | $ | 957,585 | $ | 923,577 | ||||||||
| Other Revenues | $ | 429,461 | $ | 416,538 | ||||||||
| Total Revenues | $ | 20,641,335 | $ | 19,368,559 | ||||||||
| Discontinued Assets | $ | 0 | $ | 1,952,773 | ||||||||
| EBITDA | $ | 5,794,328 | $ | 5,239,246 | ||||||||
| EBITDA Margin | 28.1 | % | 27.1 | % | ||||||||
| EBITDA Margin Growth | 1.02 | % | ||||||||||
SAME STORE HOTELS: | (Includes 41 Hotels for both 2007 and 2006) | |||||||||||
| (Owned for the entire reporting period) | Three Months Ended | |||||||||||
March 31, | ||||||||||||
2007 | 2006 | % Variance | ||||||||||
| Rooms Available | 440,864 | 441,000 | ||||||||||
| Rooms Occupied | 275,617 | 282,182 | ||||||||||
| Occupancy | 62.52 | % | 63.99 | % | -2.3 | % | ||||||
| Average Daily Rate (ADR) | $ | 116.50 | $ | 108.40 | 7.5 | % | ||||||
| Revenue Per Available Room (RevPAR) | $ | 72.83 | $ | 69.36 | 5.0 | % | ||||||
| Room Revenues | $ | 32,110,248 | $ | 30,587,672 | ||||||||
| Food & Beverage | $ | 3,913,419 | $ | 4,163,762 | ||||||||
| Other Revenues | $ | 2,001,783 | $ | 1,935,358 | ||||||||
| Total Revenues | $ | 38,025,450 | $ | 36,686,792 | ||||||||
| Discontinued Assets | $ | 0 | $ | 1,952,773 | ||||||||
| EBITDA | $ | 8,349,084 | $ | 7,582,475 | ||||||||
| EBITDA Margin | 22.0 | % | 20.7 | % | ||||||||
| EBITDA Margin Growth | 1.29 | % | ||||||||||
ALL HOTELS INCLUDING JOINT VENTURE ASSETS: | ||||||||||||
| (Recorded from date of acquisition or investment) | (2007 Includes 71 Hotels 2006 Includes 55 Hotels) | |||||||||||
Three Months Ended | ||||||||||||
March 31, | ||||||||||||
2007 | 2006 | % Variance | ||||||||||
| Rooms Available | 794,452 | 541,155 | ||||||||||
| Rooms Occupied | 509,793 | 348,678 | ||||||||||
| Occupancy | 64.17 | % | 64.43 | % | -0.4 | % | ||||||
| Average Daily Rate (ADR) | $ | 122.69 | $ | 109.17 | 12.4 | % | ||||||
| Revenue Per Available Room (RevPAR) | $ | 78.73 | $ | 70.34 | 11.9 | % | ||||||
| Room Revenues | $ | 62,546,824 | $ | 38,064,036 | ||||||||
| Food & Beverage | $ | 6,791,679 | $ | 6,268,792 | ||||||||
| Other Revenues | $ | 2,997,823 | $ | 2,210,192 | ||||||||
| Total Revenues | $ | 72,336,325 | $ | 46,543,019 | ||||||||
| Discontinued Assets | $ | 0 | $ | 1,952,773 | ||||||||
| EBITDA | $ | 19,415,289 | $ | 10,017,625 | ||||||||
| EBITDA Margin | 26.8 | % | 21.5 | % | ||||||||
| EBITDA Margin Growth | 5.32 | % | ||||||||||
13
Hersha Hospitality Trust | ||||||||
Total Portfolio | ||||||||
March 31, 2007 | ||||||||
(Dollars in thousands) | ||||||||
Name | Rooms | Year Opened/Complete Renovation | Acquisition Date | Debt Balance as of 03/31/07 | Ownership % | Hersha Preferred Equity Return | ||
Marriott | ||||||||
| 1. | Mystic, CT | 285 | 2001 | 8/9/2005 | $33,644 | 66.7% | 8.50% | |
| 2. | Hartford, CT | 409 | 2005 | 2/8/2006 | $45,000 | 15.0% | 8.50% | |
Hilton | ||||||||
| 3. | Hartford, CT | 392 | 2005 | 10/6/2005 | $22,000 | 8.8% | 8.50% | |
Courtyard | ||||||||
| 4. | Alexandria | 203 | 2006 | 09/29/06 | $25,000 | 100.0% | ||
| 5. | Scranton | 120 | 1996 | 2/1/2006 | $6,300 | 100.0% | ||
| 6. | Langhorne, PA | 118 | 2002 | 1/3/2006 | $15,575 | 100.0% | ||
| 7. | Brookline/Boston, MA | 188 | 2003 | 6/16/2005 | $38,913 | 100.0% | ||
| 8. | Norwich, CT | 144 | 1997 | 8/9/2005 | $9,400 | 66.7% | 8.50% | |
| 9. | South Boston, MA | 164 | 2005 | 7/1/2005 | $16,200 | 50.0% | 10.00% | |
| 10. | Wilmington, DE | 78 | 1999 | 6/17/2005 | $8,000 | 100.0% | ||
| 11. | Warwick, RI | 92 | 2003 | 8/9/2005 | $6,450 | 66.7% | 8.50% | |
| 12. | Ewing/Princeton, NJ | 130 | 2004 | 7/1/2004 | $13,500 | 50.0% | 11.00% | |
Hampton Inn | ||||||||
| 13. | Farmingville | 161 | 2002 | 9/6/2006 | $15,308 | 100.0% | ||
| 14. | Philadelphia, PA | 250 | 2001 | 2/15/2006 | (*) | 80.0% | 9.00% | |
| 15. | Chelsea/Manhattan, NY | 144 | 2003 | 8/29/2003 | $36,000 | 100.0% | ||
| 16. | Linden, NJ | 149 | 2003 | 10/1/2003 | $9,766 | 100.0% | ||
| 17. | Hershey, PA | 110 | 1999 | 1/1/2000 | $3,315 | 100.0% | ||
| 18. | Carlisle,PA | 95 | 1997 | 1/26/1999 | $3,621 | 100.0% | ||
| 19. | Danville, PA | 72 | 1998 | 9/1/1999 | $2,292 | 100.0% | ||
| 20. | Selinsgrove, PA | 75 | 1996 | 1/26/1999 | $3,025 | 100.0% | ||
| 21. | Herald Square, Manhattan, NY | 136 | 2005 | 4/1/2005 | $26,500 | 100.0% | ||
| 22. | Seaport, NY | 65 | 2006 | 2/1/2007 | $19,250 | 100.0% | ||
Residence Inn | ||||||||
| 23. | North Dartmouth, MA | 96 | 2002 | 5/1/2006 | $8,888 | 100.0% | ||
| 24. | Tysons Corner, VA | 96 | 1984 | 2/2/2006 | $9,393 | 100.0% | ||
| 25. | Danbury, CT | 78 | 1999 | 8/9/2005 | $8,050 | 66.7% | 8.50% | |
| 26. | Framingham, MA | 125 | 2000 | 3/26/2004 | $9,169 | 100.0% | ||
| 27. | Greenbelt, MD | 120 | 2002 | 7/16/2004 | $12,481 | 100.0% | ||
| 28. | Mystic, CT | 133 | 1996 | 09/15/2005 | $7,801 | 66.7% | 8.50% | |
| 29. | Southington, CT | 94 | 2002 | 8/9/2005 | $10,950 | 44.7% | 8.50% | |
| 30. | Williamsburg, VA | 108 | 2002 | 11/22/2005 | $8,142 | 75.0% | 12.00% | |
| 31. | Norwood, MA | 96 | 2006 | 7/27/2006 | (*) | 100.0% | ||
| 32. | Langhorne, PA | 100 | 2007 | 1/8/2007 | (*) | 100.0% | ||
| 33. | Carlisle, PA | 78 | 2007 | 1/10/2007 | $7,000 | 100.0% | ||
Summerfield Suites | ||||||||
| 34. | White Plains, NY | 159 | 2000 | 12/28/2006 | $33,030 | 100.0% | ||
| 35. | Bridgewater, NJ | 128 | 1998 | 12/28/2006 | $14,492 | 100.0% | ||
| 36. | Gaithersburg, MD | 140 | 1998 | 12/28/2006 | $13,720 | 100.0% | ||
| 37. | Pleasant Hill, CA | 142 | 2003 | 12/28/2006 | $20,160 | 100.0% | ||
| 38. | Pleasanton, CA | 128 | 1998 | 12/28/2006 | $14,490 | 100.0% | ||
| 39. | Scottsdale, AZ | 164 | 1999 | 12/28/2006 | $16,778 | 100.0% | ||
| 40. | Charlotte, NC | 144 | 1989 | 12/28/2006 | $7,330 | 100.0% | ||
Homewood Suites | ||||||||
| 41. | Glastonbury, CT | 136 | 2006 | 6/15/2006 | $12,963 | 40.0% | 10.00% | |
Holiday Inn Express | ||||||||
| 42. | Hauppauge | 133 | 2001 | 09/01/06 | $10,075 | 100.0% | ||
| 43. | Cambridge, MA | 112 | 1997 | 05/03/06 | $8,532 | 100.0% | ||
| 44. | Hershey, PA | 85 | 1997 | 1/26/1999 | $4,308 | 100.0% | ||
| 45. | New Columbia, PA | 81 | 1997 | 1/26/1999 | $1,650 | 100.0% | ||
| 46. | Malvern, PA | 88 | 2004 | 5/24/2005 | $4,070 | 100.0% | ||
| 47. | Oxford Valley, PA | 88 | 2004 | 5/26/2005 | $6,550 | 100.0% | ||
| 48. | South Boston, MA | 118 | 1998 | 10/7/2005 | $6,156 | 50.0% | 10.00% | |
| 49. | Chester, NY | 80 | 2006 | 1/25/2007 | $6,700 | 100.0% | ||
| 50. | Madison Square Garden | 228 | 2006 | 2/1/2007 | $55,000 | 50.0% | ||
Hilton Garden Inn | ||||||||
| 51. | JFK Airport, NY | 188 | 2005 | 2/16/2006 | $21,000 | 100.0% | ||
| 52. | Edison, NJ | 132 | 2003 | 10/1/2003 | $7,813 | 100.0% | ||
| 53. | Glastonbury, CT | 150 | 2003 | 11/13/2003 | $13,500 | 40.0% | 11.00% | |
| 54. | Gettysburg, PA | 88 | 2004 | 7/23/2004 | $5,218 | 100.0% | ||
Springhill Suites | ||||||||
| 55. | Waterford, CT | 80 | 1998 | 8/9/2005 | $6,335 | 66.7% | 8.50% | |
| 56. | Williamsburg, VA | 120 | 2002 | 11/22/2005 | $5,544 | 75.0% | (a.) | |
Holiday Inn Express & Suites | ||||||||
| 57. | Harrisburg, PA | 77 | 1997 | 9/1/1999 | (*) | 100.0% | ||
| 58. | King of Prussia, PA | 155 | 2004 | 5/23/2005 | $12,950 | 100.0% | ||
Four Points - Sheraton | ||||||||
| 59. | Revere/Boston, MA | 180 | 2001 | 3/11/2004 | $8,455 | 55.0% | 12.00% | |
Mainstay | ||||||||
| 60. | Valley Forge, PA | 69 | 2000 | 6/1/2001 | (*) | 100.0% | ||
| 61. | Frederick, MD | 72 | 2001 | 1/1/2002 | $3,500 | 100.0% | ||
Holiday Inn (HICC) | ||||||||
| 62. | Harrisburg, PA | 196 | 1970 | 1/26/1999 | $3,116 | 100.0% | ||
Comfort Inn | ||||||||
| 63. | North Dartmouth, MA | 84 | 1986 | 05/01/06 | $3,184 | 100.0% | ||
| 64. | Harrisburg, PA | 81 | 1998 | 1/26/1999 | $2,200 | 100.0% | ||
| 65. | Frederick, MD | 73 | 2004 | 5/27/2004 | $2,673 | 100.0% | ||
Fairfield Inn | ||||||||
| 66. | Mt. Laurel, NJ | 118 | 1998 | 1/3/2006 | $7,400 | 100.0% | ||
| 67. | Bethlehem, PA | 103 | 1997 | 1/3/2006 | $6,225 | 100.0% | ||
| 68. | Laurel, MD | 109 | 1999 | 1/31/2005 | (*) | 100.0% | ||
Hawthorne Suites | ||||||||
| 69. | Franklin, MA | 100 | 1999 | 4/25/2006 | $8,500 | 100.0% | ||
Independent | ||||||||
| 70. | Wilmington, DE | 71 | 1999 | 6/17/2005 | $4,730 | 100.0% | ||
Sleep Inn | ||||||||
| 71. | Valley Forge, PA | 87 | 2000 | 6/1/2001 | (*) | 100.0% | ||
TOTAL | 9,191 | |||||||
| (a.) - Preferred Return tier of 10% during 2007 and then 12% preferred return thereafter | ||||||||
| (*) - Asset is encumbered by the Company's credit facility | ||||||||
14
Hersha Hospitality Trust | |||||||||||||||||
Mortgages and Notes Payable | |||||||||||||||||
March 31, 2007 | |||||||||||||||||
03/31/07 | Capped or | 03/31/07 | |||||||||||||||
Fixed Rate | Fixed | Floating Rate | Floating | ||||||||||||||
Consolidated Properties | Balance | Rate | Balance | Rate | Maturity | ||||||||||||
| Four Points Sheraton - Revere, MA (SBA Loan) | $ | 552,947 | 4.00 | % | 01/2032 | ||||||||||||
| Courtyard - Brookline, MA | $ | 38,913,000 | 5.35 | % | 07/2015 | ||||||||||||
| Summerfield Suites - White Plains, NY | $ | 33,030,000 | 5.59 | % | 01/2017 | ||||||||||||
| Summerfield Suites - Pleasanthill, CA | $ | 20,160,000 | 5.59 | % | 01/2017 | ||||||||||||
| Summerfield Suites - Scottsdale, AZ | $ | 16,778,000 | 5.59 | % | 01/2017 | ||||||||||||
| Summerfield Suites - Bridgewater, NJ | $ | 14,492,000 | 5.59 | % | 01/2017 | ||||||||||||
| Summerfield Suites - Pleasanton, CA | $ | 14,490,000 | 5.59 | % | 01/2017 | ||||||||||||
| Summerfield Suites - Gaithersburg, MD | $ | 13,720,000 | 5.59 | % | 01/2017 | ||||||||||||
| Summerfield Suites - Charlotte, NC | $ | 7,330,000 | 5.59 | % | 01/2017 | ||||||||||||
| Holiday Inn Express - Chester, NY | $ | 6,700,000 | 5.63 | % | 03/2017 | ||||||||||||
| Residence Inn - North Dartmouth, MA | $ | 8,888,196 | 5.67 | % | 07/2015 | ||||||||||||
| Holiday Inn Express - Hauppauge, NY | $ | 10,075,097 | 5.70 | % | 03/2015 | ||||||||||||
| Courtyard - Langhorne, PA | $ | 15,575,000 | 5.75 | % | 02/2016 | ||||||||||||
| Fairfield Inn & Suites - Mt. Laurel, NJ | $ | 7,400,000 | 5.75 | % | 02/2016 | ||||||||||||
| Fairfield Inn & Suites - Bethlehem, PA | $ | 6,225,000 | 5.75 | % | 02/2016 | ||||||||||||
| Hilton Garden Inn - JFK Airport, NY | $ | 21,000,000 | 5.82 | % | 04/2017 | ||||||||||||
| Courtyard - Scranton, PA | $ | 6,300,000 | 5.83 | % | 02/2016 | ||||||||||||
| Hampton Inn - Herald Square, NY | $ | 26,500,000 | 6.09 | % | 04/2016 | ||||||||||||
| Hampton Inn - Chelsea, NY | $ | 36,000,000 | 6.24 | % | 10/2016 | ||||||||||||
| Courtyard - Alexandria, VA | $ | 25,000,000 | 6.25 | % | 10/2016 | ||||||||||||
| Hampton Inn - Linden, NJ | $ | 9,766,164 | 6.25 | % | 10/2008 | ||||||||||||
| Hilton Garden Inn - Edison, NJ | $ | 7,812,990 | 6.25 | % | 10/2008 | ||||||||||||
| Residence Inn - Greenbelt, MD | $ | 12,481,346 | 6.25 | % | 10/2014 | ||||||||||||
| Residence Inn - Williamsburg, VA | $ | 8,142,010 | 6.32 | % | 01/2013 | ||||||||||||
| Springhill Suites - Williamsburg, VA | $ | 5,543,647 | 6.32 | % | 01/2013 | ||||||||||||
| Holiday Inn Express & Suites - King of Prussia, PA | $ | 12,950,000 | 6.33 | % | 06/2016 | ||||||||||||
| Holiday Inn Express - Malvern, PA | $ | 4,070,000 | 6.33 | % | 06/2016 | ||||||||||||
| Holiday Inn Express - Langhorne, PA | $ | 6,550,000 | 6.33 | % | 06/2016 | ||||||||||||
| Courtyard - Wilmington, DE | $ | 8,000,000 | 6.33 | % | 06/2016 | ||||||||||||
| Independent Hotel - Wilmington, DE | $ | 4,730,000 | 6.33 | % | 06/2016 | ||||||||||||
| Hampton Inn - Seaport, NY | $ | 19,250,000 | 6.36 | % | 10/2016 | ||||||||||||
| Residence Inn - Framingham, MA | $ | 9,169,211 | 6.38 | % | 07/2019 | ||||||||||||
| Hawthorn Suites - Franklin, MA | $ | 8,500,000 | 6.40 | % | 05/2016 | ||||||||||||
| Hampton Inn - Brookhaven, NY | $ | 15,308,331 | 6.41 | % | 07/2014 | ||||||||||||
| Four Points Sheraton - Revere, MA | $ | 7,902,464 | 6.73 | % | 07/2009 | ||||||||||||
| Land - 41st Street, Manhattan, NY | $ | 12,100,000 | 6.50 | % | 08/2009 | ||||||||||||
| Comfort Inn - North Dartmouth, MA | $ | 3,183,639 | 6.55 | % | 05/2016 | ||||||||||||
| Residence Inn - Tyson's Corner, VA | $ | 9,393,316 | 6.52 | % | 08/2013 | ||||||||||||
| Hilton Garden Inn - Gettysburg, PA | $ | 5,217,623 | 6.62 | % | 09/2009 | ||||||||||||
| Mainstay Suites and Comfort Inn - Frederick, MD | $ | 6,172,555 | 7.75 | % | 12/2012 | ||||||||||||
| Hampton Inn - Carlisle, PA | $ | 3,620,637 | 8.94 | % | 04/2010 | ||||||||||||
| Hampton Inn - Selinsgrove, PA | $ | 3,024,836 | 8.94 | % | 04/2010 | ||||||||||||
| Holiday Inn Express - Hershey, PA | $ | 4,308,100 | 8.94 | % | 04/2010 | ||||||||||||
| Hampton Inn - Danville, PA | $ | 2,291,542 | 8.94 | % | 04/2010 | ||||||||||||
| HICC - New Cumberland, PA | $ | 3,116,498 | 8.94 | % | 04/2010 | ||||||||||||
| Comfort Inn - West Hanover, PA | $ | 2,199,881 | 8.94 | % | 04/2010 | ||||||||||||
| Holiday Inn Express - New Columbia, PA | $ | 1,649,910 | 8.94 | % | 04/2010 | ||||||||||||
| Holiday Inn Express - Cambridge, MA | $ | 8,531,850 | PRIME minus 0.75% | 09/2009 | |||||||||||||
| Residence Inn - Carlisle, PA | $ | 7,000,000 | PRIME minus 0.75% | 01/2010 | |||||||||||||
| Hampton Inn - Hershey, PA | $ | 3,315,417 | 30 Day LIBOR + 2.75% | 06/2014 | |||||||||||||
| Land - 8th Avenue | $ | 13,250,000 | PRIME + 0.75% | 07/2008 | |||||||||||||
| Trust Preferred Tranche I | $ | 25,774,000 | 7.34 | % | 05/2035 | ||||||||||||
| Trust Preferred Tranche II | $ | 25,774,000 | 7.17 | % | 06/2035 | ||||||||||||
| Sub-Total | $ | 577,131,940 | $ | 32,097,266 | |||||||||||||
Total Consolidated Mortgage Debt | $ | 609,229,206 | |||||||||||||||
Unconsolidated Joint Ventures | |||||||||||||||||
| Courtyard - Ewing, NJ | $ | 13,500,000 | 5.54 | % | 08/2012 | ||||||||||||
| Courtyard - Norwich, CT | $ | 9,400,000 | 5.63 | % | 08/2015 | ||||||||||||
| Springhill Suites - Waterford, CT | $ | 6,335,000 | 5.63 | % | 08/2015 | ||||||||||||
| Residence Inn - Southington, CT | $ | 10,950,000 | 5.63 | % | 08/2015 | ||||||||||||
| Residence Inn - Danbury, CT | $ | 8,050,000 | 5.63 | % | 08/2015 | ||||||||||||
| Courtyard - Warwick, RI | $ | 6,450,000 | 5.63 | % | 08/2015 | ||||||||||||
| Hilton Garden Inn - Glastonbury, CT | $ | 13,500,000 | 5.98 | % | 03/2016 | ||||||||||||
| HIEXP - Madison Square Garden, NY | $ | 55,000,000 | 6.50 | % | 11/2016 | ||||||||||||
| HIEXP - South Boston | $ | 6,156,289 | 6.75 | % | 01/2015 | ||||||||||||
| Residence Inn - Mystic, CT | $ | 7,800,729 | 6.89 | % | 02/2014 | ||||||||||||
| Marriott - Mystic, CT | $ | 24,644,063 | 6.98 | % | 11/2010 | ||||||||||||
| Marriott - Mystic, CT (Mezzanine Loan) | $ | 9,000,000 | 8.55 | % | 11/2010 | ||||||||||||
| Homewood Suites Glastonbury | $ | 12,963,028 | 7.50 | % | 09/2008 | ||||||||||||
| Courtyard - South Boston, MA | $ | 16,200,000 | 30 Day LIBOR + 2.25% | 10/2009 | |||||||||||||
| Hilton - Hartford, CT | $ | 22,000,000 | 30 Day LIBOR + 2.75% | 11/2009 | |||||||||||||
| Marriott - Hartford, CT | $ | 45,000,000 | 30 Day LIBOR + 2.90% | 02/2010 | |||||||||||||
| Sub-Total | $ | 183,749,109 | $ | 83,200,000 | |||||||||||||
Total Unconsolidated Joint Venture Debt | $ | 266,949,109 | |||||||||||||||
15
HERSHA HOSPITALITY TRUST | ||||||||||||||||||||||||||||||||
Unconsolidated Joint Venture EBITDA | ||||||||||||||||||||||||||||||||
(in thousands, except shares and per share data) | ||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2007 | ||||||||||||||||||||||||||||||||
| Courtyard Ewing | Hilton Garden Inn Glastonbury | Homewood Suites Glastonbury | Courtyard South Boston | Holiday Inn Express South Boston | Mystic Partners | Holiday Inn Express Chelsea | TOTAL | |||||||||||||||||||||||||
| Hersha Ownership | 50.0 | % | 40.0 | % | 40.0 | % | 50.0 | % | 50.0 | % | (66.7%,15%,8.8 | %) | 50.0 | % | ||||||||||||||||||
| Hersha Participanting Preferred % | 10.0 | % | 11.0 | % | 10.0 | % | 10.0 | % | 10.0 | % | 8.5 | % | N/A | |||||||||||||||||||
| Joint Venture Net Income | $ | (22 | ) | $ | 17 | $ | (407 | ) | $ | (312 | ) | $ | (149 | ) | $ | (2,695 | ) | $ | (7 | ) | $ | (3,575 | ) | |||||||||
Hotel Cash Available for Distribution | ||||||||||||||||||||||||||||||||
| Hotel EBITDA | $ | 360 | $ | 428 | $ | 28 | $ | 221 | $ | 18 | $ | 2,835 | $ | 836 | $ | 4,726 | ||||||||||||||||
| Debt Service | (191 | ) | (280 | ) | (322 | ) | (346 | ) | (154 | ) | (2,864 | ) | (843 | ) | (5,000 | ) | ||||||||||||||||
| Other | (43 | ) | (46 | ) | (20 | ) | (22 | ) | (21 | ) | (595 | ) | (71 | ) | (818 | ) | ||||||||||||||||
| Cash Available for Distribution | $ | 126 | $ | 102 | $ | (314 | ) | $ | (147 | ) | $ | (157 | ) | $ | (624 | ) | $ | (78 | ) | $ | (1,092 | ) | ||||||||||
EBITDA | ||||||||||||||||||||||||||||||||
| Hersha Income from Unconsolidated JV | $ | (11 | ) | $ | 7 | $ | (1 | ) | $ | (247 | ) | $ | (129 | ) | $ | (407 | ) | $ | (50 | ) | $ | (838 | ) | |||||||||
Addback: | ||||||||||||||||||||||||||||||||
| Step up and Outside Basis Amortization | - | - | 1 | 17 | 28 | 402 | 46 | 494 | ||||||||||||||||||||||||
| Adjustment for interest in interest expense, depreciation and amortization of unconsolidated joint venture | 191 | 164 | 28 | 451 | 119 | 2,867 | 422 | 4,242 | ||||||||||||||||||||||||
| Hersha EBITDA from Unconsolidated JV | $ | 180 | $ | 171 | $ | 28 | $ | 221 | $ | 18 | $ | 2,862 | $ | 418 | $ | 3,898 | ||||||||||||||||
Hersha Hospitality Trust | ||||||||||
2007 Acquisition Activity | ||||||||||
March 31, 2007 | ||||||||||
(Dollars in thousands) |
Name | Rooms | Year Opened/ Complete Renovation | Acquisition Date | Purchase Price | Debt Balance | Ownership % | HERSHA % OF ACQUISITIONS | HERSHA % OF DEBT | Hersha Preferred Equity Return | |||||||||||||||||||
| 1. | Residence Inn - Langhorne, PA (*) | 100 | 2007 | 01/08/2007 | $ | 15,500 | $ | 0 | 100.0 | % | $ | 15,500 | $ | 0 | N/A | |||||||||||||
| 2. | Residence Inn - Carlisle, PA | 78 | 2007 | 01/10/2007 | $ | 9,945 | $ | 7,000 | 100.0 | % | $ | 9,945 | $ | 7,000 | N/A | |||||||||||||
| 3. | Holiday Inn Express - Chester, NY | 80 | 2006 | 01/25/2007 | $ | 9,200 | $ | 6,700 | 100.0 | % | $ | 9,200 | $ | 6,700 | N/A | |||||||||||||
| 4. | Hampton Inn Seaport | 65 | 2006 | 02/01/2007 | $ | 27,625 | $ | 19,250 | 100.0 | % | $ | 27,625 | $ | 19,250 | N/A | |||||||||||||
| 5. | Holiday Inn Express - Madison Square Garden, NY | 228 | 2006 | 02/01/2007 | $ | 85,500 | $ | 55,000 | 50.0 | % | $ | 42,750 | $ | 27,500 | N/A | |||||||||||||
| Sub-Total | 551 | $ | 147,770 | $ | 87,950 | $ | 105,020 | $ | 60,450 | |||||||||||||||||||
| (*) - Encumbered by the Company's credit facility. | ||||||||||||||||||||||||||||
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HERSHA HOSPITALITY TRUST | |||
PORTFOLIO INFORMATION | |||
March 31, 2007 | |||
HOTELS BY REGION | |||
No. of Properties | No. of Rooms | ||
| Connecticut | 10 | 1,901 | |
| New York City Metro | 12 | 1,703 | |
| Philadelphia Metro | 14 | 1,533 | |
| Boston Metro | 11 | 1,355 | |
| Central PA | 11 | 1,080 | |
| Washington DC Metro | 7 | 813 | |
| CA/AZ Metro | 3 | 434 | |
| Mid-Atlantic | 3 | 372 | |
| All Regions | 71 | 9,191 | |
PROPERTY TYPE | |||
No. of Properties | No. of Rooms | ||
| Suburban | 36 | 4,007 | |
| Urban | 12 | 2,286 | |
| Small Metro | 19 | 2,256 | |
| Airport | 4 | 642 | |
| All Types | 71 | 9,191 | |
HOTELS BY SEGMENT TYPE | |||
No. of Properties | No. of Rooms | ||
| Upper Upscale | 3 | 1,086 | |
| Upscale Transient | 15 | 1,995 | |
| Upscale Extended-Stay | 20 | 2,365 | |
| Midscale | 33 | 3,745 | |
| All Segments | 71 | 9,191 | |
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Hersha Hospitality Trust | ||||||||||
Development Loans Receivable | ||||||||||
March 31, 2007 | ||||||||||
Hotel Property | Borrower | Principal Outstanding 3/31/2007 | Interest Rate | Maturity Date | ||||||
| Sheraton - JFK Airport, NY | Risingsam Hospitality, LLC | $ | 10,016,000 | 10.0 | % | Septermber 30, 2007 | ||||
| Holiday Inn Express - 29th Street, NY | Brisam Management, LLC | 15,000,000 | 10.0 | % | May 31, 2007 | |||||
| Hilton Garden Inn - Union Square, NY | Risingsam Union Square, LLC | 10,000,000 | 10.0 | % | May 31, 2007 | |||||
| Boutique Hotel - Greenwich St., NY | Brisam Greenwich, LLC | 10,000,000 | 10.0 | % | September 12, 2007 | |||||
| Boutique Hotel - 52nd St., NY | Brisam East 52, LLC | 10,000,000 | 10.0 | % | December 6, 2007 | |||||
| $ | 55,016,000 | |||||||||
Land Lease | ||||||||||
| Boutique Hotel - 39th and 8th Avenue | H Eight Avenue Associates, LLC | $ | 9,055,000 | 10.0 | % | June 28, 2031 | ||||
| Boutique Hotel - 41st and 9th Avenue | H Forty First Street, LLC | $ | 10,112,500 | 10.0 | % | July 28, 2031 | ||||
Hersha Hospitality Trust | ||||
Enterprise Value | ||||
March 31, 2007 | ||||
(Dollars in thousands) | ||||
March 31, | ||||
2007 | ||||
| Cash | $ | 8,369 | ||
| Line of Credit | 45,550 | |||
| Mortgages and Notes Payable - Consolidated Assets | 567,561 | |||
| Less: JV Portion of Mortgages Payable for Consolidated JV Assets | (11,426 | ) | ||
| Mortgages Payable - HT Portion of Unconsolidated JV Assets | 117,404 | |||
| Trust Preferred Securities | 51,548 | |||
| Series A Preferred Shares | 60,000 | |||
| Operating Partnership Units (4,570,186 @ $11.78*) | 45,183 | |||
| Class A Common Shares (40,771,593 @ $11.78*) | 479,116 | |||
| ENTERPRISE VALUE @ March 31, 2007 | $ | 1,346,567 | ||
| * - Stock price as of March 31, 2007 | ||||
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