Despite the drop in net income, adjusted funds from operations shot up 38.3% in the most recent quarter, compared with the same period of 2004. The portfolio gained eight properties--seven in its Mystic Partners joint venture with Waterford Hospitality Group, and Courtyard by Marriott in South Boston--through its JV with Jiten Management. Hersha has a 50% stake in both JVs.
The properties along with 10 others acquired this year are in the Northeastern corridor, which Jay Shah, president and COO, calls "a region we believe has the greatest long-term potential for hotel ownership. …New supply remains constrained [and]…in many cases we are creating unique joint ventures to lock up new properties under development."
Revenue per available room for the entire Hersha portfolio rose 13.2% in this third quarter to $86.98, with an 8.3% improvement in average daily rate to $112.09, and a 4.6% increase in occupancy to 77.6%. Same-store RevPAR was up 7.6% in the most recent quarter, to reach $81.12, reflecting a 2.4% increase in ADR to $103.90, and a 5% rise in occupancy to 78.1%.
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