PHILADELPHIA-Assets, at least in the hotel sector, are finally hitting the market. Problem is, as far has Hersha Hospitality Trust's management is concerned, many are too pricey.

"There's absolutely been a flurry of hotel-investment opportunities since the spring," said Neil Shah, president and chief operating officer. "Princing has been tough, but there seem to be multiple bidders."

In hot markets, like New York City and Washington DC, cap rates are as low as between 3% and 4%. For now, Shah said, the firm will concentrate mostly on trying to capture higher EBITA in its own portfolio of 75 assets across the country. "We remain very selective in pursuing further acquisitions," echoed CEO Jay Shah.

Meanwhile, the firm is looking to sell some of its non-core assets. New York City is where the firm's best-performing hotels are located and make up 22% of Hersha's hotel rooms. New England is also doing well. Tougher areas include assets the firm owns in Arizona and California.

During the second quarter, Hersha's net income came in at $3.2 million, up from a loss of $0.2 million during the same year-ago period. Funds from operations also increased, hitting $19.1 million, up from $14.4 million in Q2 2009. The firm's RevPAR rose 13.3%, to $106.21.