Hersha Hospitality Announces Fourth Quarter and Year End 2005 Earnings.PHILADELPHIA Philadelphia, ancient cities Philadelphia, name of several ancient cities. One was in Lydia, W Asia Minor (now W Turkey). At the foot of Mt. Tmolus and near the location of modern Alaşehir, it was founded in the 2d cent. B.C. -- Hersha Hospitality Trust (AMEX AMEX See: American Stock Exchange :HT):
2005 Highlights
-- Acquires Interests in 20 Hotels Totaling 2,721 Rooms
-- Owned Hotels RevPAR Increases 16% for the Full Year 2005
-- Owned Hotel EBITDA Margin Improves By 310 Basis Points
Hersha Hospitality Trust (AMEX: HT), a real estate investment trust (REIT REIT See: Real Estate Investment Trust REIT See real estate investment trust (REIT). ) that owns interest in 55 nationally franchised, upscale and midscale hotels, today announced earnings for the fourth quarter and year ended December December: see month. 31, 2005. Consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: adjusted funds from operations Funds From Operations (FFO) Used by real estate and other investment trusts to define the cash flow from trust operations; earnings with depreciation and amortization added back. (Adjusted FFO FFO See: Funds from operations ) for the year ended December 31, 2005 was $0.72 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, an increase of 22.0% over the full year 2004. Net income applicable to common shareholders was $1.4 million, or $0.07 per diluted share in 2005, compared to $2.0 million, or $0.11 per diluted share in 2004. The decrease in net income is primarily attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to the payment of preferred distributions on the Company's $60 million Cumulative Series A Preferred Shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. that were issued in July July: see month. 2005. Mr. Jay H. Shah Shah is a Persian term for a monarch (ruler) that has been adopted in many other languages. This term is a Post Islamic Revolution term for monarchs in Iran which is replaced by valie faghih or Supreme Leader. , Chief Executive Officer, commented, "The robust level of acquisition activity of premium branded hotels throughout 2005 enabled the Company to significantly increase our critical mass and improve our mix in desirable high barrier-to-entry markets in the Northeast corridor This article is about a rail line. For the agglomeration of metropolitan areas, see BosWash. For the New Jersey Transit line, see Northeast Corridor Line. The Northeast Corridor (NEC . This, coupled with our aggressive asset management program, allowed the Company to produce strong EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become growth and margin expansion." Consolidated Adjusted FFO for the fourth quarter 2005 increased to $0.12 per diluted share from $0.07 per diluted in the same quarter of 2004. Net loss applicable to common shareholders was ($3.2) million, or ($0.15) per diluted share compared to a net loss of ($0.8) million, or ($0.04) per diluted share in fourth quarter 2004. The increased net loss on a year-over-year basis is primarily due to the effects of the Company's preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. issued in July 2005 and increased depreciation expense from growth in the Company's portfolio of consolidated hotels. Mr. Shah continued, "During the quarter, our group of owned and consolidated hotels achieved Revenue Per Available Room (RevPAR RevPAR A performance metric in the hotel industry which stands for "revenue per available room." RevPAR is typically calculated by multiplying a hotel's average daily room rate (ADR) by its occupancy rate. ) growth of 18.0%, of which 63% was due to increased Average Daily Rate (ADR ADR - Astra Digital Radio ). Our portfolio has positioned the Company for significant FFO growth in 2006, given that two of the hotels we purchased were built in 2005 and our acquisition of interests in eight hotels with 1,402 rooms subsequent to the close of the year." Financial Highlights for the Fourth Quarter 2005 Consolidated hotel revenues, including revenues of hotels held for sale, increased 69.5% to $28.3 million for the fourth quarter 2005 from $16.7 million in fourth quarter 2004 driven primarily by growth in room revenues and acquisitions of hotels. RevPAR for the Company's consolidated hotels (34 hotels) increased 18.0% on a year-over-year basis to $72.37 driven by an 11.4% increase in ADR to $107.68 and a 6.0% improvement in occupancy Gaining or having physical possession of real property subject to, or in the absence of, legal right or title. In a fire insurance policy, for example, the term occupancy to 67.2%. Gross operating profit margins Operating profit margin The ratio of operating profit to net sales. increased from 35.2% to 40.4% from the year ago quarter. Total EBITDA for consolidated hotels increased 91.3% to $8.4 million for the fourth quarter 2005. EBITDA margins for the quarter increased 340 basis points to 29.6% for consolidated hotels. On a same-store basis (30 hotels), RevPAR for the fourth quarter 2005 increased 9.2% on a year-over-year basis to $67.43 driven by a 3.6% increase in ADR to $99.94 and a 5.3% improvement in occupancy to 67.5%. Same-store EBITDA increased 6.6% to $5.1 million due to the increase in revenue, offset somewhat by higher utility costs, repairs and maintenance and necessary spending to upgrade amenities. Other Fourth Quarter 2005 Highlights --In October October: see month. , Hersha closed on its 44% joint-venture investment with an 8.5% participating preferred return in the 392-room Hilton Hil·ton , Conrad Nicholson 1887-1979. American hotel-chain organizer who acquired hotels in many American cities and in 1946 founded the Hilton Hotel Corporation. - Hartford Hartford, city (1990 pop. 139,739), state capital, Hartford co., central Conn., on the west bank of the Connecticut River; settled as Newtown 1635–36 on the site of a Dutch trading post (1633; abandoned 1654), inc. 1784. , CT and a 50% interest with a 10.0% participating preferred equity return in the 118-room Holiday Inn Express - South Boston Boston, town, England Boston, town (1991 pop. 26,495), E central England, on the Witham River. Boston's fame as a port dates from the 13th cent., when it was a Hanseatic port trading wool and wine. Having recovered from a decline in the 18th and 19th cent. , MA. --In November November: see month. , the Company purchased a 75% interest with a 12.0% participating preferred equity return in the 108-room Residence Inn - Williamsburg Williamsburg, historic city (1990 pop. 11,530), seat of James City co., SE Va., on a peninsula between the James and York rivers; settled 1632 as Middle Plantation, laid out and renamed 1699, inc. 1722. , VA and a 75% interest with a stepped up participating preferred equity return in the 120-room SpringHill Suites SpringHill Suites is part of the Marriott International family of hotels. In 1998, Marriott International announced plans to convert Fairfield Suites to SpringHill Suites by Marriott. - Williamsburg, VA. Full Year 2005 Financial Highlights Consolidated total hotel revenues, including assets held for sale, increased 46.4% to $84.9 million for the full year end December 31, 2005 driven primarily by growth in room revenues and hotel acquisitions. RevPAR for consolidated hotels (34 hotels), increased 16.2% on a year-over-year basis to $69.81 driven by an 8.5% increase in ADR to $99.00 and a 7.0% improvement in occupancy to 70.5%. Gross operating profit margins increased from 38.5% to 41.4% from the full year 2004. EBITDA for consolidated hotels increased 62.0% to $27.7 million for the full year ended December 31, 2005 as compared to the full year 2004. The increase in EBITDA was primarily due to acquisitions and rate-led revenue growth offset somewhat by increased utility costs and increased spending on amenities. EBITDA margins for the full year increased 310 basis points to 32.6% for our consolidated hotels. On a same-store basis (20 hotels) RevPAR for the full year ended December 31, 2005 increased 11.5% on a year-over-year basis to $68.31 driven by a 3.7% increase in ADR to $97.16 and a 7.5% improvement in occupancy to 70.3%. Same-store EBITDA for the full year 2005 increased 14.7% from the year ago period to $17.5 million due to the increase in revenue and improved profit margins. Balance Sheet At December 31, 2005, Hersha Hospitality Trust had approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $256 million of long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. outstanding, which included approximately $51.5 million of Trust Preferred Securities. The weighted average interest rate on the Company's fixed rate debt was approximately 6.50%. The weighted average life of the Company's debt was 10.5 years. Fixed rate debt, including variable rate debt hedged hedge n. 1. A row of closely planted shrubs or low-growing trees forming a fence or boundary. 2. A line of people or objects forming a barrier: a hedge of spectators along the sidewalk. by interest rate swaps Interest Rate Swap A deal between banks or companies where borrowers switch floating-rate loans for fixed rate loans in another country. These can be either the same or different currencies. , amounted to approximately 90% of total debt. At December 31, 2005, the Company's outstanding common shares and partnership units were a combined 23.2 million. Mr. Shah concluded, "Our joint-venture strategy compliments com·pli·ment n. 1. An expression of praise, admiration, or congratulation. 2. A formal act of civility, courtesy, or respect. 3. our fully controlled core hotel portfolio by providing the Company with the ability to expand our presence in key markets and minimize In a graphical environment, to hide an application that is currently displayed on screen. For example, in Windows and Mac, the application's window is removed from the screen and represented by an icon on the Windows Taskbar. In the Mac, the icon is placed in the Dock. See Win Minimize windows. the execution risk. Furthermore, this strategy gives us a proprietary pipeline of new acquisitions that historically have attractive return characteristics in the form of cash preferred returns ranging from 8.5%-to 12.0% and the participation of any potential performance upside Upside The potential dollar amount by which the market or a stock could rise. Notes: This is basically an educated guess on how high a stock could go in the near future. See also: Bull, Downside . Our ability to finance all of our transactions with attractively priced long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. fixed rate mortgages has enabled the Company to increase our net asset value." Dividend For the fourth quarter 2005, Hersha Hospitality Trust declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. cash dividends of $0.18 per common share and $0.50 per preferred share. The Company's common dividend represents the 28th consecutive quarterly dividend since the Company's 1999 initial public offering. The Common dividend represents a yield of approximately 7.6% based upon the closing price of Hersha Hospitality Trust stock on March 1, 2006. Subsequent 2006 Events --In January January: see month. , the Company closed the acquisition of the 118-room Courtyard For alternative meanings of the word "court", see: Court (disambiguation). A court or courtyard is an enclosed area, often a space enclosed by a building that is open to the sky. - Langhorne Langhorne may refer to:
1 City (1990 pop. 12,200), Jefferson co., N central Ala., an industrial suburb of Birmingham; inc. 1919. Founded (1910) by the United States Steel Corp., its steel industry has greatly declined, negatively affecting the city's economy. Inn & Suites - Bethlehem Bethlehem, city, United States Bethlehem, city (1990 pop. 71,428), Northampton and Lehigh counties, E Pa., on the Lehigh R. near Allentown and Easton; inc. as a city 1917. Local manufacturing, once dominated by the giant Bethlehem Steel Corp. , PA and the 118-room Fairfield Inn & Suites - Mt. Laurel Laurel, cities, United States Laurel. 1 Town (1990 pop. 19,438), Prince Georges co., central Md., about halfway between Washington, D.C., and Baltimore; patented in the late 1600s, inc. 1870. , NJ for total consideration of $40.5 million. --In January, Hersha Hospitality Trust received $19.5 million in development loan repayments. --In February February: see month. , the Company completed the purchase of the 120-room Courtyard - Scranton Scranton, city (1990 pop. 81,805), seat of Lackawanna co., NE Pa., in a mountain region, on the Lackawanna River; settled in the 1700s, inc. 1866. Named for George W. , PA, the 96-room Residence Inn - Tyson's Corner, VA and the 188-room Hilton Garden Inn Hilton Garden Inn is the name of a chain of hotels operated by Hilton Hotels Corporation. Hilton Garden Inns are considered to be upscale, mid-priced hotels that are designed for both business and leisure travelers. The hotel brand is similar to that of the Courtyard by Marriott brand. - JFK Airport, NY. --In February, Hersha Hospitality Trust also finalized See finalization. two joint-venture agreements. The first was for a 15% interest with an 8.5% participating preferred equity return in the 409-room Marriott Marriott has several meanings:
Hampton, since 1965 part of the Greater London outer borough of Richmond upon Thames, SE England, on the Thames River. It is the site of Hampton Court Palace, which occupies about eight acres (3. Inn - Philadelphia, PA. --In February, Hersha Hospitality Trust also reduced its equity interest in the 392-room Hilton Hartford, CT from 44% to 8.8% with an 8.5% participating preferred equity return. Outlook for 2006 Assuming a continued strong economy in the Northeast “Northeastern” redirects here. For the Boston college, see Northeastern University, Boston. Northeast or north east is the ordinal direction halfway between north and east. It is the opposite of southwest. See boxing the compass. U.S. corridor and limited supply growth, the Company anticipates that its current portfolio, including the acquisitions completed to date, will lead to another year of growth in funds from operations. Net income available to common shareholders for the full year ended December 31, 2006 is forecasted to be in the range of a net loss of ($0.2) million to net income of $0.8 million, or ($0.01) to $0.01 per weighted average diluted share outstanding. The Company expects Adjusted FFO to be in the range of $0.98 to $1.02 per diluted share for the full year ended December 31, 2006. The foregoing guidance assumes RevPAR growth of 6% to 8% across the Company's consolidated portfolio. Fourth Quarter and Year End 2005 Earnings Call The Company will host a conference call to discuss its fourth quarter and year end 2005 financial results, today, March 2, 2006 at 5:00 PM Eastern time. Hosting the call will be Mr. Jay H. Shah, Chief Executive Officer, and Mr. Ashish Ashish is a popular Nepali and Indian male first name that means "blessing". Among the persons with this first name are:
The conference call can be accessed by dialing (877) 502-9276 or for international participants (913) 981- 5581. A replay of the call will be available from 8:00 PM Eastern time on March 2, 2006, through Midnight on March 9, 2006. The replay can be accessed by dialing (888) 203-1112 or for international participants (719) 457-0820 and entering passcode 6275481.
HERSHA HOSPITALITY TRUST
Summary Results
(in thousands, except shares and per share data)
Three Months Ended Twelve Months Ended
----------------------- -----------------------
12/31/2005 12/31/2004 12/31/2005 12/31/2004
----------- ----------- ----------- -----------
Revenue:
Percentage Lease
Revenues - HHMLP $ - $ - $ - $ 1,192
Hotel Operating
Revenues 22,021 12,960 80,899 47,339
----------- ----------- ----------- -----------
Total Revenue 22,021 12,960 80,899 48,531
----------- ----------- ----------- -----------
Expenses:
Hotel Operating
Expenses 13,968 9,510 49,798 30,335
Land Leases 108 188 433 504
Real Estate and
Personal Property
Taxes and Property
Insurance 1,380 779 4,346 3,104
General and
Administrative 1,665 1,350 4,894 3,190
Unrecognized (Gain)
on Derivatives (2) (57) (13) 62
Depreciation and
Amortization 3,306 2,078 10,635 6,930
----------- ----------- ----------- -----------
Total Operating
Expenses 20,425 13,848 70,093 44,125
----------- ----------- ----------- -----------
Operating Income
(Loss) 1,596 (888) 10,806 4,406
Interest Income 102 106 359 241
Interest Income -
Secured Loans
Related Party 972 530 4,046 1,498
Interest Income -
Secured Loans 137 364 137 693
Other Revenue 243 2 543 176
Interest Expense -
Actual 4,710 1,797 14,016 6,167
----------- ----------- ----------- -----------
(Loss) Income before
income from
Unconsolidated
Joint Venture
Investments,
Distributions to
Preferred Unitholders,
Minority Interests
and Discontinued
Operations (1,660) (1,683) 1,875 847
(Loss) Income from
Unconsolidated Joint
Venture Investments (490) 74 360 481
----------- ----------- ----------- -----------
(Loss) Income before
Distribution to
Preferred Unitholders,
Minority Interests
and Discontinued
Operations (2,150) (1,609) 2,235 1,328
Distributions to
Preferred Unitholders - - - 499
(Loss) Income Allocated
to Minority Interest
in Continuing
Operations (404) (304) 75 105
----------- ----------- ----------- -----------
(Loss) Income from
Continuing Operations (1,746) (1,305) 2,160 724
----------- ----------- ----------- -----------
Discontinued
Operations (Note 12):
Gain on Disposition
of Hotel Properties - - 1,161 -
(Loss) Income from
Discontinued
Operations (215) 518 (47) 1,325
----------- ----------- ----------- -----------
Net Income (1,961) (787) 3,274 2,049
Preferred Distributions 1,200 - 1,920 -
----------- ----------- ----------- -----------
Net (Loss) Income
applicable to Common
Shareholders $ (3,161) $ (787) $ 1,354 $ 2,049
=========== =========== =========== ===========
Earnings Per Share
from Continuing
Operations
-------------------
Basic Earnings Per
Share $ (0.14) $ (0.06) $ 0.01 $ 0.03
Diluted Earnings Per
Share $ (0.14) $ (0.06) $ 0.01 $ 0.03
Discontinued
Operations per Share
---------------------
Basic Earnings Per
Share $ (0.01) $ 0.03 $ 0.05 $ 0.08
Diluted Earnings Per
Share $ (0.01) $ 0.02 $ 0.05 $ 0.07
Earnings Per Share to
Common Shareholders
----------------------
Basic Earnings Per
Share $ (0.15) $ (0.03) $ 0.07 $ 0.11
Diluted Earnings Per
Share $ (0.15) $ (0.04) $ 0.07 $ 0.11
Basic Weighted Average
Shares Outstanding 20,296,009 20,289,983 20,293,554 16,391,805
Fully Diluted Weighted
Average Shares
Outstanding 23,207,939 23,132,420 23,177,239 19,401,636
FFO and GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). Reconciliation The National Association of Real Estate Investment Trusts ("NAREIT NAREIT National Association of Real Estate Investment Trusts ") developed Funds From Operations ("FFO") as a relative non-GAAP financial measure of performance and liquidity of an equity REIT Equity REIT A Real Estate Investment Trust that assumes ownership status in the property it invests in enabling investors of the REIT to earn dividends on rental income from the property and appreciation in property resale. Antithesis of a Mortgage REIT. in order to recognize that income-producing real estate historically has not depreciated Depreciated may refer to:
As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. 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. Hersha also presents Adjusted Funds from Operations (Adjusted FFO), which reflects FFO in accordance with the NAREIT definition further adjusted by: --adding back income allocated to units of partnership interest in our operating partnership, because the company reports Adjusted FFO to common shareholders on a fully diluted basis assuming conversion of those units to common shares; --adding back income allocated to minority interest (units of partnership interest in HT's operating partnership) related to discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. ; --adding back depreciation related to discontinued operations; --adding back distributions to holders of preferred units of partnership interest in the company's operating partnership, which are expensed for GAAP purposes on its income statement; --adding back our non-cumulative liquidation The collection of assets belonging to a debtor to be applied to the discharge of his or her outstanding debts. A type of proceeding pursuant to federal Bankruptcy preference from the Mystic Mystic, rivers, United States Mystic. 1 River, c.10 mi (16 km) long, rising in SE Conn. and flowing S past Old Mystic and Mystic villages to the Long Island Sound. Mystic Seaport, a maritime museum, is at its mouth. 2 River, c. Partners joint venture based upon our contributed capital; and --making adjustments to ground lease payments, which are required by GAAP to be amortized on a straight-line straight-line adj. 1. Lying in a straight line. 2. Relating to a device whose linkage produces or copies motion in straight lines. 3. basis over the term of the lease, to reflect the actual lease payment. FFO or Adjusted FFO 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. Hersha considers FFO and Adjusted FFO to be meaningful, additional measures of 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 measure. Hersha also believes that the additional adjustments made to arrive at Adjusted FFO help to provide a meaningful view of its underlying operations. Comparison of the company's presentation of FFO and Adjusted FFO to similarly titled measures for other REITs is not necessarily meaningful due to the differences in the calculations used internally and by other REITs. The following table reconciles FFO and Adjusted FFO for the periods presented to the most directly comparable GAAP measure, net income, for the same periods:
HERSHA HOSPITALITY TRUST
Funds from Operations (FFO)
(in thousands, except shares and per share data)
Three Months Ending Twelve Months Ending
12/31/2005 12/31/2004 12/31/2005 12/31/2004
----------- ----------- ----------- -----------
Net (Loss) Income
applicable to common
shares $ (3,161) $ (787) $ 1,354 $ 2,049
Less:
Gain on sale of
assets - - (1,161) -
Loss (Income) from
Unconsolidated Joint
Ventures 490 (74) (360) (481)
Add:
Depreciation and
amortization 3,306 2,078 10,635 6,930
----------- ----------- ----------- -----------
Funds from Consolidated
Hotel Operations 635 1,217 10,468 8,498
(Loss) Income from
Unconsolidated Joint
Ventures (490) 74 360 481
Add:
Depreciation and
amortization of
stepped up and
outside basis 492 - 651 -
Depreciation and
amortization 127 278 1,985 835
----------- ----------- ----------- -----------
Funds from
Unconsolidated Joint
Ventures Operations 129 352 2,996 1,316
----------- ----------- ----------- -----------
Funds from Operations 764 1,569 13,464 9,814
Add:
Loss (Income)
allocated to
minority interest
in common units (404) (304) 75 105
Income (Loss)
allocated to
minority interest
for discontinued
operations (30) 76 (7) 243
Depreciation from
discontinued
operations 40 121 155 595
Distributions to
preferred
unitholders - - - 499
Mystic Partners, LLC
preferred return
upon assumed
liquidation at
12/31/2005 2,158 - 2,158 -
Amortization of
deferred financing
costs 209 85 592 216
Amortization of
ground lease expense 58 - 232 -
----------- ----------- ----------- -----------
Adjusted Funds from
Operations $2,795 $1,547 $16,669 $11,472
=========== =========== =========== ===========
Fully Diluted Weighted
Average Common Shares
and Units Outstanding 23,207,939 23,132,420 23,177,239 19,401,636
Adjusted FFO per Fully
Diluted Weighted
Average Common Shares
and Units Outstanding $ 0.12 $ 0.07 $ 0.72 $ 0.59
=========== =========== =========== ===========
HERSHA HOSPITALITY TRUST
Funds from Operations (FFO) - 2006 FORECAST RECONCILIATION
(in thousands, except shares and per share data)
Low High
Twelve Months Ending
12/31/2006 12/31/2006
----------- -----------
Net Income (Loss) applicable to common
shares $ (200) $ 800
Less:
Loss (Income) from Unconsolidated Joint
Ventures (2,614) (2,914)
Add:
Depreciation and amortization 17,500 17,500
----------- -----------
Funds from Consolidated Hotel Operations 14,686 15,386
Income from Unconsolidated Joint Ventures 2,614 2,914
Add:
Depreciation and amortization 5,069 5,069
----------- -----------
Funds from Unconsolidated Joint Ventures
Operations 7,683 7,983
----------- -----------
Funds from Operations 22,369 23,369
Add:
Income allocated to minority interest in
common units (34) 136
Amortization of deferred financing
costs 800 800
Amortization of ground lease expense 232 232
----------- -----------
Adjusted Funds from Operations $ 23,367 $ 24,537
=========== ===========
Fully Diluted Weighted Average Common Shares
and Units Outstanding 23,950,000 23,950,000
Adjusted FFO per Fully Diluted Weighted
Average Common Shares and Units Outstanding $ 0.98 $ 1.02
=========== ===========
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 Securities and Exchange Commission Rules Rules enacted by the SEC to assist in the regulation of US financial markets. . 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 Adjusted FFO, as a measure of the company's operating performance.
HERSHA HOSPITALITY TRUST
EBITDA
(in thousands, except shares and per share data)
Three Months Ending Twelve Months Ending
12/31/2005 12/31/2004 12/31/2005 12/31/2004
----------- ----------- ----------- -----------
Net (Loss) Income
applicable to
common shares $ (3,161) $ (787) $ 1,354 $ 2,049
Less: Interest
income (102) (106) (359) (241)
Loss (Income) from
Unconsolidated
Joint Ventures 490 (74) (360) (481)
Add:
Interest expense 4,710 1,797 14,016 6,167
Distributions to
Series A Preferred
Shareholders 1,200 - 1,920 -
(Loss) Income
allocated to
minority interest
in common units (404) (304) 75 105
Income (Income)
allocated to
minority interest
for discontinued
operations (30) 76 (7) 243
Depreciation and
amortization from
continuing
operations 3,306 2,078 10,635 6,930
Depreciation from
discontinued
operations 40 121 155 595
Distributions to
preferred
unitholders - - - 499
Amortization of
ground lease
expense 58 - 232 -
----------- ----------- ----------- -----------
EBITDA from
Consolidated
Operations $ 6,107 $ 2,801 $ 27,661 $ 15,866
=========== =========== =========== ===========
Supplemental Schedules The company has included supplemental schedules as an addendum addendum n. an addition to a completed written document. Most commonly this is a proposed change or explanation (such as a list of goods to be included) in a contract, or some point that has been subject of negotiation after the contract was originally proposed by to this press release in order to provide additional disclosure and financial information for the benefit of the company's stakeholders Stakeholders All parties that have an interest, financial or otherwise, in a firm-stockholders, creditors, bondholders, employees, customers, management, the community, and the government. . About Hersha Hospitality Hersha Hospitality Trust is a self-advised real estate investment trust that owns interests in 55 midscale, upscale and upper upscale hotel properties with 6,915 rooms located in high barrier to entry markets primarily from Metro The code name for Microsoft's XPS document format. See XML Paper Specification. Boston, Massachusetts “Boston” redirects here. For other uses, see Boston (disambiguation). Boston is the capital and most populous city of Massachusetts.[3] The largest city in New England, Boston is considered the unofficial economic and cultural center of the entire New to Metro Washington Washington, town, England Washington, town (1991 pop. 48,856), Sunderland metropolitan district, NE England. Washington was designated one of the new towns in 1964 to alleviate overpopulation in the Tyneside-Wearside area. , DC with strong, national franchise affiliations. The Company focuses on acquisition and joint venture opportunities in primary and secondary markets near major metropolitan markets. More information on the Company is available on the Company's web site at www.hersha.com. Forward-Looking Statement forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. : Certain matters within this press release are discussed using forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. language as specified spec·i·fy tr.v. spec·i·fied, spec·i·fy·ing, spec·i·fies 1. To state explicitly or in detail: specified the amount needed. 2. To include in a specification. 3. in the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and 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.
HERSHA HOSPITALITY TRUST
KEY PERFORMANCE INDICATORS
December 31, 2005
(Unaudited)
CONSOLIDATED HOTELS:
(Recorded from date of acquisition or investment)
Three Months Ended
December 31,
----------------------------------
2005 2004 % Variance
------------ ------------ ---------
Rooms Available 354,247 237,732
Rooms Occupied 238,066 150,777
Occupancy 67.20% 63.42% 6.0%
Average Daily Rate (ADR) $107.68 $96.69 11.4%
Revenue Per Available Room (RevPAR) $72.37 $61.32 18.0%
Room Revenues $25,636,085 $14,577,958
Food & Beverage Revenues $1,973,888 $1,756,818
Total Revenues $28,267,942 $16,683,488
EBITDA $8,377,017 $4,379,131
EBITDA Margin 29.6% 26.2%
EBITDA Margin Growth 3.4%
SAMESTORE HOTELS:
(Owned for the entire reporting period)
Three Months Ended
December 31,
----------------------------------
2005 2004 % Variance
------------ ------------ ---------
Rooms Available 254,944 255,488
Rooms Occupied 172,015 163,628
Occupancy 67.47% 64.05% 5.3%
Average Daily Rate (ADR) $99.94 $96.43 3.6%
Revenue Per Available Room (RevPAR) $67.43 $61.76 9.2%
Room Revenues $17,191,870 $15,778,322
Food & Beverage Revenues $1,796,535 $1,756,818
Total Revenues $19,389,732 $17,926,161
EBITDA $5,090,729 $4,775,002
EBITDA Margin 26.3% 26.6%
EBITDA Margin Growth -0.4%
ALL HOTELS INCLUDING JOINT VENTURE ASSETS:
(Recorded from date of acquisition or investment)
Three Months Ended
December 31,
----------------------------------
2005 2004 % Variance
------------ ------------ ---------
Rooms Available 490,666 255,488
Rooms Occupied 327,419 163,628
Occupancy 66.73% 64.05% 4.2%
Average Daily Rate (ADR) $109.23 $96.43 13.3%
Revenue Per Available Room (RevPAR) $72.89 $61.76 18.0%
Room Revenues $35,765,566 $15,778,322
Food & Beverage Revenues $5,607,721 $1,756,818
Total Revenues $43,503,289 $17,926,161
EBITDA $10,551,446 $4,775,002
EBITDA Margin 24.3% 26.6%
EBITDA Margin Growth -2.4%
CONSOLIDATED HOTELS:
(Recorded from date of acquisition or investment)
Year Ended
December 31,
-----------------------------------
2005 2004 % Variance
------------ ------------ ---------
Rooms Available 1,103,744 857,592
Rooms Occupied 778,309 564,932
Occupancy 70.52% 65.87% 7.0%
Average Daily Rate (ADR) $99.00 $91.23 8.5%
Revenue Per Available Room
(RevPAR) $69.81 $60.10 16.2%
Room Revenues $77,056,376 $51,538,676
Food & Beverage Revenues $5,854,245 $5,182,252
Total Revenues $84,910,703 $58,038,061
EBITDA $27,709,126 $17,113,457
EBITDA Margin 32.6% 29.5%
EBITDA Margin Growth 3.1%
SAMESTORE HOTELS:
(Owned for the entire reporting period)
Year Ended
December 31,
-----------------------------------
2005 2004 % Variance
------------ ------------ ---------
Rooms Available 715,729 721,382
Rooms Occupied 503,246 471,847
Occupancy 70.31% 65.41% 7.5%
Average Daily Rate (ADR) $97.16 $93.71 3.7%
Revenue Per Available Room
(RevPAR) $68.31 $61.29 11.5%
Room Revenues $48,893,496 $44,215,770
Food & Beverage Revenues $3,881,819 $3,663,772
Total Revenues $53,851,040 $48,944,004
EBITDA $17,471,439 $15,231,926
EBITDA Margin 32.4% 31.1%
EBITDA Margin Growth 1.3%
ALL HOTELS INCLUDING JOINT VENTURE ASSETS:
(Recorded from date of acquisition or investment)
Year Ended
December 31,
-----------------------------------
2005 2004 % Variance
------------ ------------ ---------
Rooms Available 1,457,885 984,956
Rooms Occupied 1,039,771 661,384
Occupancy 71.32% 67.15% 6.2%
Average Daily Rate (ADR) $106.18 $97.48 8.9%
Revenue Per Available Room
(RevPAR) $75.73 $65.45 15.7%
Room Revenues $110,402,840 $64,468,707
Food & Beverage Revenues $12,228,708 $6,059,456
Total Revenues $127,195,075 $72,115,617
EBITDA $39,892,148 $22,625,916
EBITDA Margin 31.4% 31.4%
EBITDA Margin Growth 0.0%
Hersha Hospitality Trust
Total Portfolio
December 31, 2005
(Dollars in thousands)
Year
Opened/Complete Acquisition
Name Rooms Renovation Date
-------------------------------- ----- --------------- -----------
Marriott
-------------------------------- ----- --------------- -----------
1. 1 Mystic, CT 285 2001 8/9/2005
Hilton
-------------------------------- ----- --------------- -----------
2. Hartford, CT (a.) 392 2005 10/6/2005
Courtyard
-------------------------------- ----- --------------- -----------
3. Brookline/Boston, MA 188 2003 6/16/2005
4. Norwich, CT 144 1997 8/9/2005
5. South Boston, MA 164 2005 7/1/2005
6. Wilmington, DE 78 1999 6/17/2005
7. Warwick, RI 92 2003 8/9/2005
8. Ewing/Princeton, NJ 130 2004 7/1/2004
Hampton Inn
-------------------------------- ----- --------------- -----------
9. Chelsea/Manhattan, NY 144 2003 8/29/2003
10. Linden, NJ 149 2003 10/1/2003
11. Newnan, GA 91 1996 4/20/2000
12. Peachtree City, GA 61 1994 4/20/2000
13. Hershey, PA 110 1999 1/1/2000
14. Carlisle,PA 95 1997 1/26/1999
15. Danville, PA 72 1998 9/1/1999
16. Selinsgrove, PA 75 1996 1/26/1999
17. Herald Square, Manhattan, NY 136 2005 4/1/2005
Residence Inn
-------------------------------- ----- --------------- -----------
18. Danbury, CT 78 1999 8/9/2005
19. Framingham, MA 125 2000 3/26/2004
20. Greenbelt, MD 120 2002 7/16/2004
21. Mystic, CT 133 1996 9/15/2005
22. Southington, CT 94 2002 8/9/2005
23. Williamsburg, VA 108 2002 11/22/2005
Holiday Inn Express
-------------------------------- ----- --------------- -----------
24. Duluth, GA 68 1996 5/19/2000
25. Hartford, CT 96 2004 1/14/2004
26. Hershey, PA 85 1997 1/26/1999
27. New Columbia, PA 81 1997 1/26/1999
28. Malvern, PA 88 2004 5/24/2005
29. Oxford Valley, PA 88 2004 5/26/2005
30. South Boston, MA 118 1998 10/7/2005
Hilton Garden Inn
-------------------------------- ----- --------------- -----------
31. Edison, NJ 132 2003 10/1/2003
32. Glastonbury, CT 150 2003 11/13/2003
33. Gettysburg, PA 88 2004 7/23/2004
Springhill Suites
-------------------------------- ----- --------------- -----------
34. Waterford, CT 80 1998 8/9/2005
35. Williamsburg, VA 120 2002 11/22/2005
Holiday Inn Express & Suites
-------------------------------- ----- --------------- -----------
36. Harrisburg, PA 77 1997 9/1/1999
37. King of Prussia, PA 155 2004 5/23/2005
Four Points - Sheraton
-------------------------------- ----- --------------- -----------
38. Revere/Boston, MA 180 2001 3/11/2004
Mainstay
-------------------------------- ----- --------------- -----------
39. Valley Forge, PA 69 2000 6/1/2001
40. Frederick, MD 72 2001 1/1/2002
Holiday Inn (HICC)
-------------------------------- ----- --------------- -----------
41. Harrisburg, PA 196 1970 1/26/1999
Comfort Inn
-------------------------------- ----- --------------- -----------
42. Harrisburg, PA 81 1998 1/26/1999
43. Frederick, MD 73 2004 5/27/2004
Fairfield Inn
-------------------------------- ----- --------------- -----------
44. Laurel, MD 109 1999 1/31/2005
Independent
-------------------------------- ----- --------------- -----------
45. Wilmington, DE 71 1999 6/17/2005
Comfort Suites
-------------------------------- ----- --------------- -----------
46. Duluth, GA 85 1996 5/19/2000
Sleep Inn
-------------------------------- ----- --------------- -----------
47. Valley Forge, PA 87 2000 6/1/2001
-------------------------------- ----- --------------- -----------
TOTAL 5,513
=====
Hersha
Debt Balance Preferred
as of Ownership Equity
Name 12/31/05 % Return
------------------------------- ------------- --------- ----------
Marriott
------------------------------- ------------- --------- ----------
1. 1 Mystic, CT $34,195 66.7% 8.5%
Hilton
------------------------------- ------------- --------- ----------
2. Hartford, CT (a.) $22,000 44.0% 8.5%
Courtyard
------------------------------- ------------- --------- ----------
3. Brookline/Boston, MA $38,913 100.0%
4. Norwich, CT $9,400 66.7% 8.5%
5. South Boston, MA $16,200 50.0% 10.0%
6. Wilmington, DE $8,000 100.0%
7. Warwick, RI $9,450 66.7% 8.5%
8. Ewing/Princeton, NJ $13,500 50.0% 11.0%
Hampton Inn
------------------------------- ------------- --------- ----------
9. Chelsea/Manhattan, NY $15,720 33.3%
10. Linden, NJ $9,974 100.0%
11. Newnan, GA $2,933 100.0%
12. Peachtree City, GA $1,949 100.0%
13. Hershey, PA $3,528 100.0%
14. Carlisle,PA $3,713 100.0%
15. Danville, PA $2,350 100.0%
16. Selinsgrove, PA $3,102 100.0%
17. Herald Square, Manhattan, NY $22,000 100.0%
Residence Inn
------------------------------- ------------- --------- ----------
18. Danbury, CT $8,050 66.7% 8.5%
19. Framingham, MA $9,382 100.0%
20. Greenbelt, MD $12,769 100.0%
21. Mystic, CT $7,974 66.7% 8.5%
22. Southington, CT $10,950 44.7% 8.5%
23. Williamsburg, VA $8,491 75.0% 12.0%
Holiday Inn Express
------------------------------- ------------- --------- ----------
24. Duluth, GA $2,529 100.0%
25. Hartford, CT NA 100.0%
26. Hershey, PA $4,418 100.0%
27. New Columbia, PA $1,692 100.0%
28. Malvern, PA $5,740 100.0%
29. Oxford Valley, PA $5,460 100.0%
30. South Boston, MA $6,382 50.0% 10.0%
Hilton Garden Inn
------------------------------- ------------- --------- ----------
31. Edison, NJ $7,979 100.0%
32. Glastonbury, CT $9,409 40.0% 11.0%
33. Gettysburg, PA $5,339 100.0%
Springhill Suites
------------------------------- ------------- --------- ----------
34. Waterford, CT $6,335 66.7% 8.5%
35. Williamsburg, VA $5,781 75.0% (b.)
Holiday Inn Express & Suites
------------------------------- ------------- --------- ----------
36. Harrisburg, PA NA 100.0%
37. King of Prussia, PA $11,270 100.0%
Four Points - Sheraton
------------------------------- ------------- --------- ----------
38. Revere/Boston, MA $8,654 55.0% 12.0%
Mainstay
------------------------------- ------------- --------- ----------
39. Valley Forge, PA NA 100.0%
40. Frederick, MD $3,471 100.0%
Holiday Inn (HICC)
------------------------------- ------------- --------- ----------
41. Harrisburg, PA $3,196 100.0%
Comfort Inn
------------------------------- ------------- --------- ----------
42. Harrisburg, PA $2,256 100.0%
43. Frederick, MD $2,900 100.0%
Fairfield Inn
------------------------------- ------------- --------- ----------
44. Laurel, MD NA 100.0%
Independent
------------------------------- ------------- --------- ----------
45. Wilmington, DE $3,760 100.0%
Comfort Suites
------------------------------- ------------- --------- ----------
46. Duluth, GA $3,050 100.0%
Sleep Inn
------------------------------- ------------- --------- ----------
47. Valley Forge, PA NA 100.0%
------------------------------- ------------- --------- ----------
TOTAL
(a.) - Equity Ownership adjusted to 8.8% as of February 8, 2006
(b.) - Preferred Return tier of 8% and 10% during years 1 and 2,
respectively, and then a 12% preferred return thereafter
Hersha Hospitality Trust
Mortgages and Notes Payable
December 31, 2005
Capped '12/31/05
'12/31/05 or Floating
Fixed Rate Fixed Rate Floating
Owned Properties Balance Rate Balance Rate Maturity
------------------ ------------- ------ ------------ -------- --------
Four Points
Sheraton - Revere,
MA (SBA Loan) $568,020 4.00% 01/2032
Courtyard -
Brookline, MA $38,913,000 5.35% 07/2015
Hampton Inn -
Linden, NJ $9,974,142 6.25% 10/2008
Hilton Garden Inn
- Edison, NJ $7,979,314 6.25% 10/2008
Residence Inn -
Greenbelt, MD $12,769,366 6.25% 10/2014
Residence Inn -
Williamsburg, VA $8,490,829 6.32% 01/2013
Springhill Suites
- Williamsburg,
VA $5,781,147 6.32% 01/2013
Residence Inn -
Framingham, MA $9,382,164 6.38% 07/2019
Four Points
Sheraton -
Revere, MA $8,086,140 6.50% 07/2009
Hilton Garden Inn
- Gettysburg, PA $5,338,582 6.62% 09/2009
Holiday Inn Express
& Suites - King of
Prussia, PA $11,270,000 7.13% 07/2008
Holiday Inn
Express -
Malvern, PA $5,740,000 7.13% 07/2008
Holiday Inn
Express -
Langhorne, PA $5,460,000 7.13% 07/2008
Courtyard -
Wilmington, DE $8,000,000 7.13% 07/2008
Independent Hotel
- Wilmington, DE $3,760,000 7.13% 07/2008
Mainstay Suites and
Comfort Inn -
Frederick, MD $6,371,392 7.75% 12/2012
Hampton Inn -
Newnan, GA $2,933,039 8.70% 08/2007
Comfort Suites -
Duluth, GA $3,049,729 8.71% 06/2010
Holiday Inn
Express - Duluth,
GA $2,529,044 8.71% 06/2010
Hampton Inn -
Carlisle, PA $3,712,575 8.94% 04/2010
Hampton Inn -
Selinsgrove, PA $3,101,645 8.94% 04/2010
Holiday Inn
Express -
Hershey, PA $4,417,494 8.94% 04/2010
Hampton Inn -
Danville, PA $2,349,731 8.94% 04/2010
HICC - New
Cumberland, PA $3,195,634 8.94% 04/2010
Comfort Inn - West
Hanover, PA $2,255,742 8.94% 04/2010
Holiday Inn
Express - New
Columbia, PA $1,691,806 8.94% 04/2010
Hampton Inn -
Peachtree City,
GA $1,948,996 9.43% 05/2017
Hampton Inn - 30 Day
Herald Square, NY LIBOR +
$22,000,000 3.65% 03/2009
Hampton Inn - 30 Day
Hershey, PA LIBOR +
$3,528,333 2.75% 06/2014
Trust Preferred
Tranche I $25,774,000 7.34% 05/2035
Trust Preferred
Tranche II $25,774,000 7.17% 06/2035
------------- ------------
Sub-Total $230,617,531 $25,528,333
------------- ------------
Total Consolidated
Debt $256,145,864
=============
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 $9,450,000 5.63% 08/2015
HIEXP - South
Boston $6,381,819 6.75% 01/2015
Residence Inn -
Mystic, CT $7,973,917 6.89% 02/2014
Marriott - Mystic,
CT $25,194,901 6.98% 11/2010
Marriott - Mystic,
CT (Mezzanine
Loan) $9,000,000 8.55% 11/2010
Hampton Inn - 30 Day
Chelsea, NY LIBOR +
$15,720,000 3.50% 02/2007
Courtyard - South 30 Day
Boston, MA LIBOR +
$16,200,000 2.25% 10/2009
Hilton Garden Inn 30 Day
- Glastonbury, CT LIBOR +
$9,408,549 3.35% 11/2013
Hilton - Hartford, 30 Day
CT LIBOR +
$22,000,000 2.75% 11/2009
------------- ------------
Sub-Total $106,235,637 $63,328,549
------------- ------------
Total
Unconsolidated
Joint Venture
Debt $169,564,186
=============
Hersha Hospitality Trust
2005 Acquisition Activity
December 31, 2005
(Dollars in thousands)
Year
Opened/Complete Acquisition
Name Rooms Renovation Date
------------------------------------ ----- --------------- -----------
Marriott
------------------------------------ ----- --------------- -----------
Mystic, CT 285 2001 08/09/2005
Courtyard
------------------------------------ ----- --------------- -----------
Brookline/Boston, MA 188 2003 06/16/2005
Norwich, CT 144 1997 08/09/2005
South Boston, MA 164 2005 07/01/2005
Wilmington, DE 78 1999 06/17/2005
Warwick, RI 92 2003 08/09/2005
Hampton Inn
------------------------------------ ----- --------------- -----------
Herald Square, Manhattan, NY 136 2005 04/01/2005
Residence Inn
------------------------------------ ----- --------------- -----------
Williamsburg, VA 120 2002 11/22/2005
Danbury, CT 78 1999 08/09/2005
Mystic, CT 133 1996 09/15/2005
Southington, CT 94 2002 08/09/2005
Holiday Inn Express
------------------------------------ ----- --------------- -----------
Malvern, PA 88 2004 05/24/2005
Oxford Valley, PA 88 2004 05/26/2005
South Boston, MA 118 1998 10/07/2005
Hilton
------------------------------------ ----- --------------- -----------
Hartford Downtown (a.) 392 2005 10/06/05
Springhill Suites
------------------------------------ ----- --------------- -----------
Springhill Suites - Williamsburg, VA 108 2002 11/22/2005
Waterford, CT 80 1998 08/09/2005
Holiday Inn Express & Suites
------------------------------------ ----- --------------- -----------
King of Prussia, PA 155 2004 05/23/2005
Fairfield Inn
------------------------------------ ----- --------------- -----------
Laurel, MD 109 1999 01/31/2005
Independent
------------------------------------ ----- --------------- -----------
Wilmington, DE 71 1999 06/17/2005
------------------------------------ ----- --------------- -----------
SUBTOTAL 2,721
==================================== ===== =============== ===========
Hersha
Total Preferred
Purchase Ownership Equity
Name Price % Return
--------------------------------------- -------- ---------- ----------
Marriott
--------------------------------------- -------- ---------- ----------
Mystic, CT $54,500 66.7% 8.50%
Courtyard
--------------------------------------- -------- ---------- ----------
Brookline/Boston, MA $54,500 100.0%
Norwich, CT $12,600 66.7% 8.50%
South Boston, MA $23,350 50.0% 10.00%
Wilmington, DE $11,300 100.0%
Warwick, RI $9,300 66.7% 8.50%
Hampton Inn
--------------------------------------- -------- ---------- ----------
Herald Square, Manhattan, NY $31,300 100.0%
Residence Inn
--------------------------------------- -------- ---------- ----------
Williamsburg, VA $16,000 75.0% 12.00%
Danbury, CT $9,700 66.7% 8.50%
Mystic, CT $17,800 66.7% 8.50%
Southington, CT $14,100 66.7% 8.50%
Holiday Inn Express
--------------------------------------- -------- ---------- ----------
Malvern, PA $8,200 100.0%
Oxford Valley, PA $7,800 100.0%
South Boston, MA $11,250 50.0% 10.00%
Hilton
--------------------------------------- -------- ---------- ----------
Hartford Downtown (a.) $35,175 44.0% 8.50%
Springhill Suites
--------------------------------------- -------- ---------- ----------
Springhill Suites - Williamsburg, VA $14,500 75.0% (b.)
Waterford, CT $8,000 66.7% 8.50%
Holiday Inn Express & Suites
--------------------------------------- -------- ---------- ----------
King of Prussia, PA $16,100 100.0%
Fairfield Inn
--------------------------------------- -------- ---------- ----------
Laurel, MD $7,250 100.0%
Independent
--------------------------------------- -------- ---------- ----------
Wilmington, DE $5,500 100.0%
--------------------------------------- -------- ---------- ----------
SUBTOTAL $368,225
======================================= ======== ========== ==========
(a.) - Equity Ownership adjusted to 8.8% as of February 8, 2006
(b.) - Preferred Return tier of 8% and 10% during years 1 and 2,
respectively, and then a 12% preferred return thereafter
Hersha Hospitality Trust
2005 Disposition Activity
December 31, 2005
(Dollars in thousands)
Disposition Disposition Ownership
Name Rooms Date Price %
----------------------------- ----- ------------ ----------- ---------
Doubletree Club
----------------------------- ----- ------------ ----------- ---------
JFK International Airport, NY 110 05/13/2005 $11,500 100.0%
Holiday Inn Express
----------------------------- ----- ------------ ----------- ---------
Long Island City, NY 79 05/13/2005 $9,000 100.0%
----------------------------- ----- ------------ ----------- ---------
SUBTOTAL 189 $20,500
============================= ===== ============ =========== =========
Hersha Hospitality Trust
Development Loans Receivable
December 31, 2005
Principal
Outstanding
December 31, Interest Maturity
Hotel Property Borrower 2005 Rate Date
------------------------- ------------ ------------ -------- --------
Hilton Garden Inn - JFK Metro Ten
Airport, New York Hotels, LLC $850,000 10.0% (1)
Boutique Hotel - 35th 44 Fifth
Street, New York Avenue, LLC $9,100,000 9.0% (1)
Boutique Hotel - Tribeca, 5444
New York Associates,
LP $9,500,000 10.0% (1)
Hampton Inn - Seaport, HPS Seaport, March
New York LLC and BCM, 31,
LLC $13,000,000 10.0% 2006
------------
$32,450,000
============
(1) - Development loan has been paid off in full as of January 2006.
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