One part water, one part hospitality, mechanical somewhere
They don't normally make the real estate headlines, but three Dauphin County companies have made an impact on the local industry in recent years.
I'm talking about Derry Township-based Pennsylvania American Water Co., Harrisburg-based H.B. McClure Co. and the affiliated Hersha businesses, which have a corporate office on Front Street in Harrisburg.
Wait, they are not real estate companies. I know.
But look at how they have expanded their assets and geographic footprints in recent years.
PAWC has made 25 water and wastewater acquisitions across the state over the last five years. At the same time, company revenue grew by more than $100 million between 2008 and 2012. It was $557.7 million last year, according to company records.
Mechanical contractor H.B. McClure has made six acquisitions around the region, starting in April 2011. Meanwhile, its revenue cracked $32 million last year after a decade in the $20 million-plus range. H.B. McClure is projecting $38 million this year.
And then there is Hersha. The publicly traded Hersha Hospitality Trust has been selling off hotels in smaller markets, including Central Pennsylvania, to focus on new builds and acquisitions in major urban markets with high barriers to entry.
Its assets today are more than $1.8 billion. In January 1999, the trust had total assets of $44.2 million.
While the trust has revamped its portfolio over the last five years, Hersha Hospitality Management has retained many trust hotels and diversified through partnerships with a select group of large asset managers.
HHM nearly doubled revenue between 2010 and 2012. The latter was $23.1 million, according to Business Journal records.
And the Hersha businesses have been renovating the Harrisburg office — so far to the tune of $750,000 — to accommodate for ongoing growth in operational support.
If that's not a real estate headline, I don't know what is.
Oh wait, I just wrote about them last week. Also, feel free to check out cpbj.com for stories on PAWC and H.B. McClure.
Yes, I'm going with shameless self-promotion this week.