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Hersha Hospitality Trust Announces Special Dividend and Continuation of Quarterly Cash Dividend

PRESS RELEASE: Paid content from Globe Newswire
Press release content from Globe Newswire. The AP news staff was not involved in its creation.
December 15, 2022 GMT

PHILADELPHIA, Dec. 15, 2022 (GLOBE NEWSWIRE) -- Hersha Hospitality Trust (NYSE: HT) (“Hersha” or the “Company”), owner of luxury and lifestyle hotels in coastal gateway and resort markets, today announced its Board of Trustees has approved a special dividend of $0.50 per common share and per limited partnership unit for the year ending December 31, 2022. In addition to this special dividend, the Board also approved a cash dividend of $0.05 per common share and per limited partnership unit for the fourth quarter ending December 31, 2022. These common share dividends and limited partnership unit distributions are both payable on January 18, 2023, to holders of record as of December 30, 2022.

The Board of Trustees also declared a cash dividend of $0.4297 per Series C Preferred Share, $0.40625 per Series D Preferred Share, and $0.40625 per Series E Preferred Share for the fourth quarter ending December 31, 2022. The preferred share dividends are payable January 17, 2023, to holders of record as of December 30, 2022

Mr. Jay H. Shah, Hersha’s Chief Executive Officer, stated, “I am very pleased to announce that our Board of Trustees has approved this significant special dividend as a result of the gains generated from our strategic dispositions. The $650M in sales generated nearly $200M in gains. The proceeds from these sales facilitated a comprehensive refinancing which substantially de-levered our balance sheet and eliminated near-term maturities. The impact of these transformational sales, in conjunction with the cash generation of our portfolio, will lead to $225M in year-end cash holdings. This special dividend, along with the continuation of our common dividend, demonstrates not only the success of our disposition strategy but also our confidence and outlook for our streamlined portfolio. As we highlighted in our latest investor materials, our portfolio composition is levered to the urban recovery, while still benefiting from strong demand in the leisure segment. We are already exceeding pre-COVID performance and expect to continue driving profitability through operations. With ample cash on hand, we maintain significant flexibility as we head into the new year.”

Hersha Hospitality Trust (HT) is a self-advised real estate investment trust in the hospitality sector, which owns and operates luxury and lifestyle hotels in coastal gateway and resort markets. The Company’s 25 hotels totaling 3,811 rooms are located in New York, Washington, DC, Boston, Philadelphia, South Florida, and California.

The Company’s common shares are traded on The New York Stock Exchange under the ticker “HT.” For more information on the Company, and the Company’s hotel portfolio, please visit the Company’s website at www.hersha.com.

Forward-Looking Statement
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, and, as such, may involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance to differ from those reflected in the forward-looking statement. Forward-looking statements are generally identifiable by use of forward-looking terminology such as “believe,” “could,” “outlook,” “consider,” “expect,” “anticipate,” “forecast,” “project,” “likely,” “estimate,” “plan,” “continue,” “maintain,” “intend,” “should,” “may,” and words of similar import. Because these forward-looking statements relate to future events, the Company’s plans, strategies, prospects and future financial performance, and involve known and unknown risks that are difficult to predict and may be outside the Company’s control, they are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed in any forward-looking statement. Therefore, you should not rely on any of these forward-looking statements. For a description of factors that may cause the Company’s actual results or performance to differ from its forward-looking statements, please review the information under the heading “Risk Factors” included in the Company’s most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q filed by the Company with the Securities and Exchange Commission (“SEC”) and other documents filed by the Company with the SEC from time to time. All information provided in this press release, unless otherwise stated, is as of December 15, 2022, and the Company undertakes no duty to update this information unless required by law.

Contact:  Ashish Parikh, Chief Financial Officer
Andrew Tamaccio, Director of Investor Relations & Finance
Phone: (215) 238-1046