Investor Presentation January 2022
The Envoy, Boston Seaport
Table of Contents
Lodging Recovery
3
Investment Thesis
13
Strategic Capitalization
22
Core Market Drivers
27
Sustainability
32
The Parrot Key Hotel & Villas, Key West, FL
Lodging Recovery
The Cadillac Hotel & Beach Club, Miami Beach, FL
Q4 Performance Exceeds Forecast
October - Best Performing Month Post-COVID:
- Proprietary operating strategy offset seasonality at 5 highest ADR-producing resorts, resulting in $10.9 million of property-level EBITDA
- Property-levelEBITDA surpassed July's results by approximately $1 million
November - Continued Strength in Urban Markets:
- Most notable strength in Manhattan (79% Occ, $172.52 RevPAR, $1.8M EBITDA) and Boston (66% Occ, $153.53 RevPAR, $700K EBITDA)
December - Exceeded Expectations Driven by Strong Rates:
- The comparable portfolio experienced 7.2% ADR growth to December 2019 driven by 28.8% growth at our resorts with our urban markets ADR only falling 5% despite ~1,800 bps of occ loss to 2019
$270 | Hersha's Comparable Portfolio Monthly Performance | $249.55 | 70% | |||||||||
$238.8 | ||||||||||||
$240 | ||||||||||||
$211.1 | 60.5% | 65% | ||||||||||
$210 | 57.3% | 60% | ||||||||||
$180 | $151.2 | 55.3% | $136.7 | $151.0955% | ||||||||
$150 | ||||||||||||
$116.7 | 50% | |||||||||||
$120 | ||||||||||||
45% | ||||||||||||
$90 | 40.9% | |||||||||||
$60 | $61.9 | 40% | ||||||||||
$30 | 35% | |||||||||||
$0 | 30% | |||||||||||
January | February | March | April | May | June | July | August | September | October | November December | ||
'21 | ||||||||||||
ADR | RevPAR | Occupancy |
| Page 4
December Results Continue to Outperform
December RevPAR results continued to improve, narrowing performance gap to 2019
October and November RevPAR trailed 2019 comparable month results by 30% and 21%, respectively, while our December results trailed by 14%
Comparable portfolio generated 430 and 180 basis points of margin expansion for GOP and EBITDA, respectively
Resort hotels continued to see strong demand with resort portfolio generating 28.8% ADR growth, resulting in 16% RevPAR growth versus the December 2019
South Florida portfolio generated 23.1% ADR Growth, resulting in 13.9% RevPAR growth versus December 2019
Despite the Omicron Surge, urban portfolio achieved 59% occupancy in December, driven most notably by Manhattan (75%)
Manhattan maintained weekday strength with 72% occupancy and $177.45 RevPAR while posting 82% occupancy and $244.96 RevPAR on weekends
| Page 5
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Hersha Hospitality Trust published this content on 19 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 January 2022 21:25:20 UTC.