EX-99.1 3 ex99_1.htm EXHIBIT 99.1 ex99_1.htm
Exhibit 99.1

Item 6.
Selected Financial Data

The following sets forth selected financial and operating data on a historical consolidated basis. The following data should be read in conjunction with the financial statements and notes thereto and Management’s Discussion and Analysis of Financial Condition and Results of Operations included elsewhere in this Form 10-K.

HERSHA HOSPITALITY TRUST
SELECTED FINANCIAL DATA
(In thousands, except per share data)

   
2007
    
2006
    
2005
    
2004
    
2003
  
Revenue:
                              
Hotel Operating Revenues
   $ 229,461     $ 132,354     $ 65,493     $ 33,228     $ 920  
Interest Income From Development Loans
     6,046       2,487       3,940       2,191       715  
Land Lease Revenue
     4,860       2,071       -       -       -  
Hotel Lease Revenue
     -       -       -       1,192       8,433  
Other Revenues
     980       737       529       176       8  
Total Revenue
     241,347       137,649       69,962       36,787       10,076  
Operating Expenses:
                                        
Hotel Operating Expenses
     130,910       76,694       38,573       19,875       836  
Hotel Ground Rent
     856       804       433       504       50  
Land Lease Expense
     2,721       1,189       -       -       -  
Real Estate and Personal Property Taxes and Property Insurance
     11,349       5,979       3,374       2,129       809  
General and Administrative
     8,185       6,238       4,962       3,130       618  
Compensation Expense related to Option Redemption
     -       -       -       -       1,307  
Depreciation and Amortization
     33,863       18,420       8,336       4,754       2,628  
Total Operating Expenses
     187,884       109,324       55,678       30,392       6,248  
Operating Income
     53,463       28,325       14,284       6,395       3,828  
Interest Income
     686       1,182       602       241       86  
Interest expense
     42,115       25,123       12,167       4,155       2,844  
Loss on Debt Extinguishment
     -       1,485       -       -       116  
Income before income (loss) from Unconsolidated Joint Venture Investments, Distributions to Preferred Unitholders, Minority Interests and Discontinued Operations
     12,034       2,899       2,719       2,481       954  
Income (Loss) from Unconsolidated Joint Venture Investments
     3,476       1,799       457       481       (24 )
Income Before Distribution to Preferred Unitholders, Minority Interest and Discontinued Operations
     15,510       4,698       3,176       2,962       930  
Distributions to Preferred Unitholders
     -       -       -       499       1,195  
Income (Loss) Allocated to Minority Interest  in Continuing Operations
     1,773       579       122       307       (60 )
Income from Continuing Operations
     13,737       4,119       3,054       2,156       (205 )
Discontinued Operations, net of minority interest:
                                        
Gain on Disposition of Hotel Properties
     3,745       693       1,161       -       -  
Income (Loss) from Discontinued Operations
     365       286       (918 )     (107 )     990  
Net Income
     17,847       5,098       3,297       2,049       785  
Preferred Distributions
     4,800       4,800       1,920       -       -  
Net Income applicable to Common Shareholders
   $ 13,047     $ 298     $ 1,377     $ 2,049     $ 785  
Basic Income (Loss) from Continuing Operations applicable to Common Shareholders
   $ 0.22     $ (0.03 )   $ 0.06     $ 0.13     $ (0.04 )
Diluted Income (Loss) from Continuing Operations applicable to Common Shareholder (1)
   $ 0.22     $ (0.03 )   $ 0.06     $ 0.13     $ (0.04 )
Dividends declared per Common Share
   $ 0.72     $ 0.72     $ 0.72     $ 0.72     $ 0.72  

 
1
 
 
   
2007
    
2006
    
2005
    
2004
    
2003
  
Balance Sheet Data
                              
Net investment in hotel properties
   $ 893,297     $ 807,784     $ 317,980     $ 163,923     $ 121,076  
Hotel Assets Held for Sale
   $ -     $ -     $ 3,407     $ 18,758     $ -  
Minority interest in Partnership
   $ 42,845     $ 25,933     $ 15,147     $ 16,779     $ 38,971  
Shareholder's equity
   $ 330,405     $ 331,619     $ 164,703     $ 119,792     $ 71,460  
Total assets
   $ 1,067,607     $ 968,208     $ 455,355     $ 261,021     $ 196,568  
Total debt
   $ 663,008     $ 580,542     $ 256,146     $ 98,788     $ 71,837  
Liabilities Related to Hotel Assets Held for Sale
   $ -     $ -     $ 375     $ 13,058     $ -  
Other Data
                                        
Funds from Operations (2)
   $ 49,821     $ 25,936     $ 14,495     $ 10,539     $ 6,533  
Net cash provided by operating activities
   $ 59,300     $ 27,217     $ 15,002     $ 12,148     $ 5,193  
Net cash used in investing activities
   $ (46,027 )   $ (413,881 )   $ (190,825 )   $ (78,378 )   $ (58,370 )
Net cash (used in) provided by  financing activities
   $ (11,262 )   $ 388,200     $ 163,989     $ 46,137     $ 93,744  
Weighted average shares outstanding
                                        
Basic
     40,718,724       27,118,264       20,293,554       16,391,805       4,614,316  
Diluted (1)
     40,718,724       27,118,264       20,299,937       16,391,805       4,614,316  


(1)           Income allocated to minority interest in the Partnership has been excluded from the numerator and Partnership units have been omitted from the denominator for the purpose of computing diluted earnings per share since the effect of including these amounts in the numerator and denominator would have no impact.
(2)           See Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Funds From Operations” for an explanation of FFO, why we believe FFO is a meaningful measure of our operating performance and a reconciliation of FFO to net income calculated in accordance with GAAP.
 
 
2