Hersha Hospitality Trust Announces New $100 Million Share Repurchase Program
October 03 2016 - 8:00AM
Business Wire
Hersha Hospitality Trust (NYSE:HT) (“Hersha” or the “Company”),
owner of upscale hotels in urban gateway markets, today announced
that its Board of Trustees authorized a new share repurchase
program of up to $100 million of the Company’s outstanding common
shares. This new program will commence upon completion of the
Company’s existing $100 million share repurchase program, of which
approximately $23.1 million remains available for repurchases of
the Company’s outstanding common shares through the end of 2016.
The Company expects to complete the new repurchase program prior to
December 31, 2017, unless extended by the Board of Trustees.
“The Company is on track to successfully dispose over $825
million of stabilized hotels this year. Our ability to execute
these sales has provided the Company tremendous financial
flexibility to acquire assets, de-lever and undertake additional
share repurchases. The new $100 million share repurchase program
underscores confidence in our young, differentiated and
high-quality hotel portfolio, in addition to driving returns to our
shareholders. We believe opportunistic share buybacks are an
attractive use of available capital and a driver of share value
when the share price is temporarily dislocated and at a material
discount to our net asset value. Since 2014, we have repurchased
$192.2 million of our common shares, representing approximately 20%
of common shares outstanding. We intend to continue opportunistic
share repurchases throughout the year to take advantage of capital
market dislocations, remaining steadfast to our sustained and
unique value creation philosophy and commitment to driving total
shareholder returns,” stated Jay H. Shah, Hersha’s Chief Executive
Officer.
The shares may be repurchased from time to time in open market
transactions at prevailing market prices, in privately negotiated
transactions or by other means in accordance with federal
securities laws. The actual timing, number and value of shares
repurchased under the program will be determined by management at
its discretion and will depend on a number of factors, including
the market price of the Company’s common shares and general market
and economic conditions, applicable legal requirements, compliance
with the terms of the Company’s outstanding indebtedness and the
availability of capital for repurchases.
Year-to-date as of September 30, 2016, the Company has
repurchased approximately 2.6 million common shares totaling $49.0
million, representing 5.9% of common shares outstanding.
Hersha Hospitality Trust (HT) is a self-advised real
estate investment trust in the hospitality sector, which owns and
operates high quality upscale hotels in urban gateway markets. The
Company's 55 hotels totaling 8,799 rooms are located in New York,
Boston, Philadelphia, Washington, DC, Miami and select markets on
the West Coast. The Company's shares are traded on The New York
Stock Exchange under the ticker “HT”.
Forward Looking Statements
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. The risks and uncertainties associated
with forward-looking information in this release include, but are
not limited to, factors that are beyond the Company’s control,
including the Company’s ability to identify and execute on property
acquisitions and dispositions on attractive terms, if at all, the
Company’s ability to reduce its leverage, the Company’s ability to
effect share repurchases on the timing it expects and the other
factors identified in the Company’s Annual Report, on Form 10-K for
the year ended December 31, 2015 and subsequent filings with the
U.S. Securities Exchange Commission. Including the information
under the heading “Risk Factors”.
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version on businesswire.com: http://www.businesswire.com/news/home/20161003005407/en/
Hersha Hospitality TrustAshish Parikh, Chief Financial
OfficerPete Majeski, Manager of Investor Relations &
Finance215-238-1046
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