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Investment In Unconsolidated Joint Ventures (Tables)
 6 Months Ended
Jun. 30, 2016
Investment In Unconsolidated Joint Ventures [Abstract]  
Investment In Unconsolidated Joint Ventures



 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

Percent

 

Preferred

 

 

June 30,

 

 

December 31,

Joint Venture

 

Hotel Properties

 

Owned

 

Return

 

 

2016

 

 

2015



 

 

 

 

 

 

 

 

 

 

 

 

SB Partners, LLC

 

Holiday Inn Express, South Boston, MA

 

 50.0% 

 

N/A

 

$

 982 

 

$

 795 

Hiren Boston, LLC

 

Courtyard by Marriott, South Boston, MA

 

 50.0% 

 

N/A

 

 

 3,034 

 

 

 4,499 

Mystic Partners, LLC

 

Hilton and Marriott branded hotels in CT

 

8.8%-66.7%

 

8.5% non-cumulative

 

 

 4,864 

 

 

 5,022 

Cindat Hersha Owner JV, LLC

 

Hilton and IHG branded hotels in NYC

 

 30.0% 

 

*

 

 

 8,364 

 

 

 -



 

 

 

 

 

 

 

$

 17,244 

 

$

 10,316 

*See explanation below of the Cindat Hersha Owner JV, LLC (“Owner JV”) for more information on the preferred return provisions of this joint venture.

Income Or Loss From Unconsolidated Joint Ventures



 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 



 

 

Three Months Ended June 30,

 

Six Months Ended June 30,



 

 

2016

 

 

2015

 

 

2016

 

 

2015

SB Partners, LLC

 

$

 326 

 

$

 287 

 

$

 287 

 

$

 198 

Hiren Boston, LLC

 

 

 379 

 

 

 316 

 

 

 285 

 

 

 207 

Mystic Partners, LLC

 

 

 (76)

 

 

 (77)

 

 

 (157)

 

 

 (153)

Cindat Hersha Owner JV, LLC

 

 

 892 

 

 

 -

 

 

 892 

 

 

 -

Income from Unconsolidated Joint Venture Investments

 

$

 1,521 

 

$

 526 

 

$

 1,307 

 

$

 252 



Summary Financial Information Related To Unconsolidated Joint Ventures



 

 

 

 

 

 



 

 

 

 

 

 

Balance Sheets

 

 

 

 

 

 



 

 

June 30,

 

 

December 31,



 

 

2016

 

 

2015

Assets

 

 

 

 

 

 

Investment in Hotel Properties, Net

 

$

 652,905 

 

$

 105,354 

Other Assets

 

 

 37,513 

 

 

 15,558 

Total Assets

 

$

 690,418 

 

$

 120,912 



 

 

 

 

 

 

Liabilities and Equity

 

 

 

 

 

 

Mortgages and Notes Payable

 

$

 444,392 

 

$

 113,532 

Other Liabilities

 

 

 24,911 

 

 

 30,575 

Equity:

 

 

 

 

 

 

Hersha Hospitality Trust

 

 

 126,224 

 

 

 22,698 

Joint Venture Partner(s)

 

 

 94,891 

 

 

 (45,893)

Total Equity

 

 

 221,115 

 

 

 (23,195)



 

 

 

 

 

 

Total Liabilities and Equity

 

$

 690,418 

 

$

 120,912 









 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

Statements of Operations

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 



 

 

Three Months Ended June 30,

 

Six Months Ended June 30,



 

 

2016

 

 

2015

 

 

2016

 

 

2015

Room Revenue

 

$

 31,578 

 

$

 15,939 

 

$

 43,958 

 

$

 28,621 

Other Revenue

 

 

 6,789 

 

 

 6,131 

 

 

 11,492 

 

 

 11,199 

Operating Expenses

 

 

 (20,681)

 

 

 (14,313)

 

 

 (33,565)

 

 

 (27,506)

Lease Expense

 

 

 (276)

 

 

 (276)

 

 

 (581)

 

 

 (551)

Property Taxes and Insurance

 

 

 (2,316)

 

 

 (720)

 

 

 (3,077)

 

 

 (1,475)

General and Administrative

 

 

 (2,116)

 

 

 (1,333)

 

 

 (3,348)

 

 

 (2,738)

Depreciation and Amortization

 

 

 (3,335)

 

 

 (1,572)

 

 

 (5,009)

 

 

 (3,138)

Interest Expense

 

 

 (4,658)

 

 

 (1,635)

 

 

 (6,264)

 

 

 (3,257)

Acquisition Costs

 

 

 (1,499)

 

 

 -

 

 

 (1,499)

 

 

 -

Loss allocated to Noncontrolling Interests

 

 

 (72)

 

 

 (62)

 

 

 (40)

 

 

 (86)

   Net Income

 

$

 3,414 

 

$

 2,159 

 

$

 2,067 

 

$

 1,069 



Reconciliation Of Share In Unconsolidated Joint Ventures' Equity In Investment In Unconsolidated Joint Ventures







 

 

 

 

 

 



 

 

 

 

 

 



 

 

June 30,

 

 

December 31,



 

 

2016

 

 

2015

Company's share of equity recorded on the joint ventures' financial statements

 

$

 126,224 

 

$

 22,698 

Adjustment to reconcile the Company's share of equity recorded on the joint ventures' financial statements to our investment in unconsolidated joint ventures(1)

 

 

 (108,980)

 

 

 (12,382)

Investment in Unconsolidated Joint Ventures

 

$

 17,244 

 

$

 10,316 



(1)  Adjustment to reconcile the Company's share of equity recorded on the joint ventures' financial statements to our investment in unconsolidated joint ventures consists of the following:



·

cumulative impairment of the Company’s investment in joint ventures not reflected on the joint ventures' financial statements;

·

the difference between the Company’s basis in the investment in joint ventures and the equity recorded on the joint ventures' financial statements; and

accumulated amortization of the Company’s equity in joint ventures that reflects the difference in the Company’s portion of the fair value of joint ventures' assets on the date of our investment when compared to the carrying value of the assets recorded on the joint ventures’ financial statements (this excess or deficit investment is amortized over the life of the properties, and the amortization is included in Income (Loss) from Unconsolidated Joint Venture Investments on the Company’s consolidated statement of operations).