PHILADELPHIA, May 17, 2021 (GLOBE NEWSWIRE) — Hersha Hospitality Trust (NYSE: HT), owner of high-quality hotels in urban gateway markets and regional resort destinations, today announced operating results for April 2021 and the closing of the sale of the 43-room Duane Street Hotel.
April Operating Results
- Property-level cash flow of $3.8 million, 15% above forecast
- Corporate-level cash burn of $3.2 million, including preferred dividends
- 40% GOP margin for comparable portfolio
- Resort portfolio continued its outperformance in April
- $4.2 million in absolute EBITDA generation
- 41% weighted average EBITDA margin
- 44% RevPAR growth at the Parrot Key Hotel & Villas
- 26% RevPAR growth at the Sanctuary Beach Resort
“Demand sequentially improved from March into April, highlighted by robust performance from our South Florida and Resort-oriented hotels. Results exceeded our expectations on both the top and bottom line as total portfolio revenue was 30% above our forecast at the beginning of the month. Strong demand, coupled with the stringent cost containment measures we have implemented across our hotels, led to 72% flow through in April. Thus far during the second quarter, we have seen early stages of the business travel recovery take shape, with many of our hotels housing guests in the Financial, Pharmaceutical, and Technology sectors with small corporate groups booked in the second half of the year. As cities continue to lift restrictions, we anticipate travel from both business and leisure customers to materially improve through the summer in our urban gateway markets,” stated Mr. Jay H. Shah, Hersha’s Chief Executive Officer.
Duane Street Hotel Disposition
Hersha closed on the previously announced sale of the 43-room Duane Street Hotel in TriBeCa, NYC for $18.0 million or $419,000 per key. The transaction was executed at a 19.5x multiple and a 4.3% capitalization rate on 2019 Hotel EBITDA and net operating income, respectively. Proceeds from the sale were utilized to pay down debt.
Mr. Shah continued, “Last week, we successfully closed on the sale of the Duane Street Hotel in New York City at an attractive price bringing the asset-disposition strategy we embarked on 9 months ago to equitize the portfolio to a conclusion. With all previously announced hotel sales completed, we are hyper focused on operational performance across our portfolio, which has generated robust results year-to-date. May performance month-to-date at our South Florida and West Coast hotels highlights our ability to maintain rate integrity in the early stages of the cycle, which will remain a critical component of the sector’s recovery as occupancies incrementally build through the balance of the year. We believe our purpose-built suite of hotels is best situated to capture this increased demand from both leisure and business travelers over the next several months and through the recovery.”
Cushman and Wakefield served as advisor to Hersha Hospitality Trust on the sale of the Duane Street Hotel.
Hersha Hospitality Trust (HT) is a self-advised real estate investment trust in the hospitality sector, which owns and operates high-quality hotels in urban gateway markets and regional resort destinations. The Company’s 36 hotels totaling 5,802 rooms are located in New York, Washington, DC, Boston, Philadelphia, South Florida and select markets on the West Coast. The Company’s common shares are traded on The New York Stock Exchange under the ticker “HT.” For more information on the Company, and the Company’s hotel portfolio, please visit the Company’s website at www.hersha.com
