The greatest increases occurred during the closing quarter of the year. While modest, the hospitality REIT's gains in all four measures, prompt Jay. A. Shah, president and COO, to say, "We believe the hotel industry is poised for a recovery and that we are well-positioned to benefit from it." Hersha added to its management team in 2003 and added a 40% interest in Hilton Garden Inn Hartford South in Glastonbury, CT.
FFO for the year rose to $9 million, up from $8.3 million in 2002. Full-year RevPAR increased 3.6% to $54.10, based on a 2.5% increase in occupancy to 65.5% and a 1.1% increase in ADR to $82.56.
The fourth-quarter increases were more significant. Occupancy rose 3.7% compared with the same quarter the previous year. RevPAR was up 4.9% from fourth-quarter 2002 levels, and ADR paralleled the 1.1% full-year increase.
The REIT's portfolio outperformed its competitive set in both fourth quarter and full-year 2003. Shah reports that according to Smith Travel Research, Hersha's portfolio achieved a 105.8% market share for the fourth quarter, and a 107.7% market share for the year.
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