Hersha reports Q3 earnings, buys California hotel
Hersha Hospitality Trust, a real estate investment trust with offices in Harrisburg, Philadelphia and New York City, announced third-quarter earnings and added a new hotel to its portfolio on Wednesday.
The trust finished the quarter with $26.5 million in adjusted funds from operations, or AFFO. That was up from $23.2 million in the third quarter of 2012.
That translated to AFFO of 13 cents per diluted common share compared to 11 cents per diluted common share in the same quarter a year ago.
Hersha reported net loss applicable to common shareholders of $1.1 million compared to net income of $2.7 million for the third quarter of 2012. That loss was due to a non-cash impairment charge on assets held for sale.
The company is selling 16 noncore hotels for gross proceeds of $217 million. The sale will complete a portfolio transformation that accelerated about five years ago to focus solely on select-service hotels in urban gateway markets with high barriers to entry.
Hersha’s primary focus is hotels in Boston, Miami, New York, Philadelphia, Washington, D.C., and select markets on the West Coast, including Los Angeles and San Diego.
Meanwhile, the trust bolstered its West Coast presence by entering into a definitive agreement to purchase the 122-room Hotel Oceana in Santa Barbara, Calif., for $42 million.
The hotel had an average daily rate of $208.51 and occupancy of 93 percent over the 12-month period that ended Sept. 30, according to Hersha.
That deal is expected to close by the end of the first quarter 2014.