EX-99.1 4 ex99_1.htm EXHIBIT 99.1 Exhibit 99.1

Exhibit 99.1
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)

Operating Data
 
2005
  
2004
  
2003
  
2002
  
2001
  
 
  
 
  
 
  
 
  
 
  
 
  
Revenue:
 
 
  
 
  
 
  
 
  
 
  
Percentage Lease Revenues - HHMLP (1)
 
$
-
  
$
1,192
  
$
10,144
  
$
9,846
  
$
9,360
  
Hotel Operating Revenues
   
75,212
   
42,470
   
1,631
   
-
   
-
 
Total Revenue
   
75,212
   
43,662
   
11,775
   
9,846
   
9,360
 
Expenses:
                     
Hotel Operating Expenses
   
46,082
   
26,890
   
1,242
   
-
   
-
 
Land Lease - Related Party
   
-
   
-
   
-
   
-
   
13
 
Land Lease
   
433
   
504
   
50
   
-
   
-
 
Real Estate and Personal Property Taxes and Property Insurance
   
4,067
   
2,851
    
1,021
   
748
   
643
 
General and Administrative
   
4,972
    
3,150
   
631
   
514
   
492
 
Prepayment Penalties
   
-
   
-
   
116
   
-
   
-
 
Gain on Sale of Assets
   
-
   
-
   
-
   
-
   
(598
)
Unrecognized Loss on Derivatives
   
(13
)
  
62
   
-
   
-
   
-
 
Compensation Expense related to Option Redemption
   
-
   
-
   
1,307
   
-
   
-
 
Depreciation and Amortization
   
9,548
   
5,964
   
3,315
   
2,862
   
3,095
 
Total Operating Expenses
   
65,089
   
39,421
   
7,682
   
4,124
   
3,645
 
Operating Income
    
10,123
   
4,241
   
4,093
   
5,722
   
5,715
 
Interest
   
359
   
241
   
86
   
7
   
32
 
Interest - Secured Loans Related Party
   
4,046
   
1,498
   
715
   
207
   
154
 
Intrest - Secured Loans
   
137
   
693
   
-
   
-
   
-
 
Other Revenue
   
520
   
176
   
8
   
-
   
-
 
Interest expense
   
(13,150
)
  
(5,151
)
  
(3,294
)
  
(3,376
)
  
(3,637
)
Interest expense - Related Party
   
-
   
-
   
(60
)
  
(60
)
  
(72
)
Income before income (loss) from Unconsolidated Joint Venture Investments, Distributions to Preferred Unitholders, Minority Interests and Discontinued Operations
   
2,035
   
1,698
   
1,548
   
2,500
   
2,192
 
Income (Loss) from Unconsolidated Joint Venture Investments
   
457
   
481
   
(24
)
  
-
   
-
 
Income Before Distribution to Preferred Unitholders, Minority Interest and Discontinued Operations
    
2,492
   
2,179
   
1,524
   
2,500
   
2,192
 
Distributions to Preferred Unitholders
   
-
   
499
   
1,195
   
-
   
-
 
Income Allocated to Minority Interest
   
38
   
210
   
148
   
2,211
   
1,818
 
Income from continuing operations
    
2,454
   
1,470
   
181
   
289
   
374
 
Discontinued Operations:
                     
Gain on Sale of Discontinued Operations
   
1,161
   
-
   
-
   
449
   
-
 
(Loss) Income from Discontinued Operations
   
(318
)
  
579
   
604
   
554
    
460
 
Net income
  
$
3,297
 
$
2,049
  
$
785
  
$
1,292
  
$
834
  
 
                      
Preferred Distributions
    
1,920
   
-
   
-
   
-
   
-
 
Net Income applicable to Common Shareholders
  
$
1,377
  
$
2,049
  
$
785
  
$
1,292
  
$
834
  
Basic Earnings from Continuing Operations applicable to Common Shareholders Per Common Share (3)
 
$
0.03
  
$
0.09
  
$
0.04
  
$
0.11
  
$
0.17
  
Diluted Earnings from Continuing Operations applicable to Common Shareholders Per Common Share
 
$
0.03
  
$
0.09
  
$
0.04
  
$
0.11
  
$
0.17
  
Dividends declared per Common Share
 
$
0.72
  
$
0.72
  
$
0.72
  
$
0.72
  
$
0.72
  
 
1
 
 
  
2005
  
2004
  
2003
  
2002
  
2001
  
Balance Sheet Data
 
  
  
  
  
  
  
  
  
  
  
Net investment in hotel properties
 
$
317,980
  
$
163,923
  
$
121,076
  
$
93,814
  
$
88,100
  
Assets Held for Sale
 
$
3,407
  
$
18,758
  
$
-
  
$
-
  
$
-
  
Minority interest in Partnership
 
$
15,147
  
$
16,779
  
$
38,971
  
$
20,258
  
$
20,436
  
Shareholder's equity
 
$
164,703
  
$
119,792
  
$
71,460
  
$
11,378
  
$
10,210
  
Total assets
 
$
455,355
  
$
261,021
  
$
196,568
  
$
101,516
  
$
96,017
  
Total debt
 
$
256,146
  
$
97,761
  
$
71,837
  
$
65,341
  
$
61,535
  
Debt related to Assets Held for Sale
 
$
375
  
$
13,058
  
$
0
  
$
0
  
$
0
  
Other Data
                     
Funds from Operations (3)
 
$
13,474
  
$
10,477
  
$
6,533
  
$
8,293
  
$
7,998
  
Net cash provided by operating activities
 
$
15,413
  
$
12,148
  
$
5,193
  
$
8,177
  
$
6,828
  
Net cash (used in) provided by investing activities
 
$
(191,236
)
$
(78,378
)
$
(58,370
)
$
(345
)
$
5,513
  
Net cash provided by (used in) financing activities
 
$
163,989
 
$
46,137
  
$
93,744
  
$
(7,859
)
$
(12,174
)
Weighted average shares outstanding
                     
Basic
   
20,293,554
    
16,391,805
    
4,614,316
    
2,519,820
    
2,275,000
  
Diluted
   
20,335,181
    
16,391,805
    
4,614,316
    
2,519,820
    
2,275,000
  

_________________________

(1)   Represents initial fixed rent plus aggregate percentage rent paid by HHMLP to the Partnership pursuant to percentage leases, which payments are calculated by applying the rent provisions in the respective percentage leases to the historical room revenues.
 
(2)   Represents basic earnings per share computed in accordance with FAS No. 128.

(3)   See “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Funds From Operations” for an explanation of FFO, why we believe Adjusted FFO is a meaningful measure of our operating performance and a reconciliation of Adjusted FFO to net income calculated in accordance with GAAP.
 
 
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