Hotels For Sale in NYC - OFF MARKET Hotel Properties For Sale in New York - Hotel Development NYC

Hersha Hospitality Trust - Healthy Future for NYC Hotels

Hotel Real Estate News NYC

On May 4, the Pennsylvania-based Hersha Hospitality Trust (NYSE: HT), owner of select service and luxury hotels in major markets, released their first quarter results ended March 31, 2011. Among other announcements, Hersha Hospitality predicts a healthy future for NYC hotels. The company is encouraged by the state of the New York City hospitality market.

NYC Developments

According to Hersha Hospitality’s Chief Executive Officer, Mr. Jay H. Shah, the firm has finished most of the renovations at their nine NYC hotels. The projects reflect Hersha Hospitality's standard of excellence and increase the properties' cash flow and profitability. Shah is confident about the company's NYC assets. Hersha Hospitality expects booking trends to emerge as business picks up even further during the second quarter of 2011.

NYC Market

Economic recovery is the source of optimism in the hospitality sector. Continued recovery makes its presence felt in the marketplace. Investors have confidence in NYC hotels.

NYC Acquisitions

Recently, Hersha Hospitality added to their portfolio in New York City. On March 25, 2011, the Company closed on the purchase of the 112-room Holiday Inn Express Wall Street for about $36.7 million ($328 thousand per key) plus closing costs and fees. The sale price was paid in cash and the hotel was purchased unencumbered by mortgage debt.

In addition, the company purchased the 81-room Hampton Inn Financial District for $32.4 million. Hersha Hospitality Trust expects to close this deal during the second quarter of the year. This company focuses on profitable off market opportunities in core markets like New York City. Hersha Hospitality Trust has shown overall confidence in the established NYC market.

New York City Portfolio

• Includes five NYC boroughs
• Consists of 14 consolidated hotels as of March 31, 201
• During the first quarter of 2011, Hersha's New York City portfolio experienced a 5.3% decline in RevPAR to $110.25 as a 0.4% increase in ADR to $151.08 was offset by a 436 basis point decrease in occupancy to 72.97% from 77.33%.
• On a pro forma basis and not including the hotels under renovation, the Company’s same-store NYC portfolio saw a 4.8% rise in RevPAR compared to a market growth of 1.9%, spurred on by a 2.2% increase in ADR to $150.58, and a 190 basis point increase in occupancy to 75.50.
• At the beginning of the second quarter of 2011, trends are improving and RevPAR in the NYC portfolio has increased to almost 14% in April. During 2010, Hersha Hospitality acquired three hotels in Times Square. These properties are showing steady stabilization in April with RevPAR over thirty per cent. The company is encouraged by the NYC trends and performance of its hotels in the first month of the second quarter.

Hersha Hospitality Trust - New York City Hotels

Hilton Garden Inn Tribeca
Holiday Inn Express Wall Street
Holiday Inn Express Times Square South
Candlewood Suites Times Square South
Hampton Inn Manhattan/Times Square
Duane Street Hotel Tribeca
NU Hotel-Brooklyn
Hotel 373 Fifth Avenue
Hampton Inn Manhattan/Chelsea
Hampton Inn Manhattan/Herald Square
Hampton Inn Manhattan/Seaport
Holiday Inn Express Manhattan/Madison Square
Sheraton Hotel JFK International Airport
Hilton Garden Inn JFK International Airport
Hyatt Summerfield Suites-White Plains
Hampton Inn Brookhaven-Long Island/Farmingville
Holiday Inn Express-Long Island/Hauppauge
Holiday Inn Express Hotel and Suites-Chester
Hilton Garden Inn-Edison/Raritan Center
Courtyard by Marriott-Ewing/Princeton
Hyatt Summerfield Suites-Bridgewater

Hersha Hospitality Trust, a self-advised real estate investment trust, owns interests in 78 hotels (10,442 rooms) primarily along the Northeast Corridor from Boston to Washington as well as in Northern California and Scottsdale, Arizona. Hersha specializes in upscale, mid-scale, and extended stay hotels in major centers.

Hersha Hospitality Announces First Quarter Results

Image courtesy of thehotelinventory.com