INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Tables)

9 Months Ended

Sep. 30, 2023

Equity Method Investments and Joint Ventures [Abstract]

Schedule of Investment in Unconsolidated Joint Ventures

As of September 30, 2023 and December 31, 2022, our investment in unconsolidated joint ventures consisted of the following:

Joint Venture	Hotel Properties	Percent Owned			September 30, 2023		December 31, 2022
SB Partners, LLC	Holiday Inn Express, South Boston, MA	50	%	*	$	—	$	—
SB Partners Three, LLC	Home2 Suites, South Boston, MA	50	%		4,068		4,989
					$	4,068	$	4,989

Schedule of Income (Loss) from Unconsolidated Joint Ventures

Income (Loss) recognized during the three and nine months ended September 30, 2023 and 2022 for our investments in unconsolidated joint ventures is as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Hiren Boston, LLC*	$	—	$	394	$	—	$	436
SB Partners, LLC	—		—		—		(310)
SB Partners Three, LLC	5		84		(421)		(227)
Income (Loss) from Unconsolidated Joint Venture Investments	$	5	$	478	$	(421)	$	(101)

*On November 30, 2022, we sold our 50% membership interest in Hiren Boston, LLC.

Schedule of Financial Information Related to Unconsolidated Joint Ventures

The following tables set forth the total assets, liabilities, equity and components of net income or loss, including the Company’s share, related to the unconsolidated joint ventures discussed above as of September 30, 2023 and December 31, 2022 and for the three and nine months ended September 30, 2023 and 2022.

Balance Sheets

	September 30, 2023		December 31, 2022
Assets
Investment in Hotel Properties, Net	$	44,247	$	47,356
Other Assets	12,131		11,803
Total Assets	$	56,378	$	59,159
Liabilities and Equity
Mortgages	$	49,304	$	50,236
Other Liabilities	10,196		10,012
Equity:
Hersha Hospitality Trust	1,613		2,630
Joint Venture Partner(s)	(4,735)		(3,719)
Total Equity	(3,122)		(1,089)
Total Liabilities and Equity	$	56,378	$	59,159

Statements of Operations

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Room Revenue	$	5,668	$	8,166	$	13,003	$	17,661
Other Revenue	208		405		531		909
Operating Expenses	(2,854)		(4,156)		(7,182)		(10,239)
Lease Expense	(159)		(320)		(478)		(834)
Property Taxes and Insurance	(417)		(588)		(1,170)		(1,732)
General and Administrative	7		(71)		78		(107)
Depreciation and Amortization	(1,041)		(1,244)		(3,184)		(3,746)
Interest Expense	(851)		(923)		(2,490)		(2,364)
Income Tax Expense	(140)		(114)		(140)		(62)
Net Income (Loss)	$	421	$	1,155	$	(1,032)	$	(514)

Schedule of Reconciliation of Share in Unconsolidated Joint Ventures Equity in Investment in Unconsolidated Joint Ventures

The following table is a reconciliation of our share in the unconsolidated joint ventures’ equity to our investment in the unconsolidated joint ventures as presented on our balance sheets as of September 30, 2023 and December 31, 2022.

	September 30, 2023		December 31, 2022
Our share of equity recorded on the joint ventures' financial statements	$	1,613	$	2,630
Adjustment to reconcile our share of equity recorded on the joint ventures' financial statements to our investment in unconsolidated joint ventures(1)	2,455		2,359
Investment in Unconsolidated Joint Ventures	$	4,068	$	4,989

(1)  Adjustment to reconcile our share of equity recorded on the joint ventures' financial statements to our investment in unconsolidated joint ventures consists of the difference between our basis in the investment in joint ventures and the equity recorded on the joint ventures' financial statements.