WASHINGTON, DC–Philadelphia-based Hersha Hospitality's best performing market during the first quarter was its Washington DC, urban portfolio, which reported 15.4% revenue per available room growth. The REIT's Washington, DC metro area portfolio reported 11.9% RevPAR growth, followed by the Philadelphia and Boston portfolios at 11.1% and 8.2%, respectively, for the quarter.
Rate-based gains, and robust performance in the Washington, DC cluster from January's presidential inauguration drove a Hotel EBITDA increase of 3.5% to $32.5 million, according to CEO Jay Shah.
“We are constructive on the cycle's duration based on an improving macroeconomic environment and healthy employment, coupled with positive demand trends and solid convention calendars across the majority of our markets,” he said in a prepared statement when releasing the quarterly results.
The West Coast (33%), South Florida (25%) and Washington, DC (18%) portfolios contributed approximately 76% of total consolidated EBITDA in the first quarter 2017 compared to approximately 70% in the first quarter 2016. New York City contributed 13%, Boston contributed 5%, while Philadelphia contributed 3% of consolidated EBITDA in the first quarter 2017.
At the start of the year Hersha sold the 203-room Courtyard by Marriott in Alexandria, Va., and the 120-room Residence Inn in Greenbelt, Md. for $62 million.
The following month in February it acquired the 115-room Ritz-Carlton in Coconut Grove, Fla. for $36 million, funding that the acquisition with proceeds from the sale of the Residence Inn Greenbelt as part of a tax-deferred like-kind exchange.
Last year the REIT made a similar exchange when it acquired the Ritz-Carlton Georgetown for $50 million and the 238-room Hilton Garden Inn M Street for almost $107 million, using some of the proceeds from its sale of the controlling interest in seven of its limited service hotels in Manhattan for $571.4 million.
Currently its DC area portfolio consists of:
- The Ritz-Carlton Georgetown
- The St. Gregory Hotel
- The Capitol Hill Hotel
- Hilton Garden Inn M Street
- Hampton Inn Washington DC
- Residence Inn Tysons Corner
- Hyatt House Gaithersburg
WASHINGTON, DC–Philadelphia-based Hersha Hospitality's best performing market during the first quarter was its Washington DC, urban portfolio, which reported 15.4% revenue per available room growth. The REIT's Washington, DC metro area portfolio reported 11.9% RevPAR growth, followed by the Philadelphia and Boston portfolios at 11.1% and 8.2%, respectively, for the quarter.
Rate-based gains, and robust performance in the Washington, DC cluster from January's presidential inauguration drove a Hotel EBITDA increase of 3.5% to $32.5 million, according to CEO Jay Shah.
“We are constructive on the cycle's duration based on an improving macroeconomic environment and healthy employment, coupled with positive demand trends and solid convention calendars across the majority of our markets,” he said in a prepared statement when releasing the quarterly results.
The West Coast (33%), South Florida (25%) and Washington, DC (18%) portfolios contributed approximately 76% of total consolidated EBITDA in the first quarter 2017 compared to approximately 70% in the first quarter 2016.
At the start of the year Hersha sold the 203-room Courtyard by Marriott in Alexandria, Va., and the 120-room Residence Inn in Greenbelt, Md. for $62 million.
The following month in February it acquired the 115-room Ritz-Carlton in Coconut Grove, Fla. for $36 million, funding that the acquisition with proceeds from the sale of the Residence Inn Greenbelt as part of a tax-deferred like-kind exchange.
Last year the REIT made a similar exchange when it acquired the Ritz-Carlton Georgetown for $50 million and the 238-room
Currently its DC area portfolio consists of:
- The Ritz-Carlton Georgetown
- The St. Gregory Hotel
- The Capitol Hill Hotel
- Hampton Inn Washington DC
- Residence Inn Tysons Corner
- Hyatt House Gaithersburg
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