HT Hersha Hospitality Trust

Hersha Hospitality Trust (NYSE: HT) owner of nationally franchised premium select service and full service hotels, today announced earnings for the second quarter ended June 30, 2008. Financial Highlights for the Second Quarter 2008 Growth in hotel revenues along with increased income from development loans resulted in improved net income applicable to common shareholders. For the second quarter of 2008, net income applicable to common shareholders grew 6.1% to $7.0 million from $6.6 million in the second quarter of 2007. Net income applicable to common shareholders of $0.16 per weighted average common share outstanding in the second quarter of 2008 was comparable to the second quarter of 2007 due to an increase in common shares outstanding during the quarter, the proceeds of which were utilized to reduce the Company�s line of credit, initiate development loans and to acquire three new hotels. Operating income for the second quarter ended June 30, 2008 grew 7.4% to $18.8 million from $17.5 million for the same period in 2007. The growth in operating income was a result of improved operating margins from rate-led hotel revenue growth, continued stabilization of several new hotels and accretive asset acquisitions. Adjusted funds from operations (AFFO) for the second quarter of 2008 increased 2.4% to $0.43 per diluted common share and unit from $0.42 per diluted common share and unit for the same quarter of 2007. Growth in the Company�s hotel portfolio and performance of its assets helped to offset the impact of increased shares outstanding in the second quarter of 2008 relative to the second quarter of 2007. A reconciliation of AFFO to net income applicable to common shares, the most directly applicable U.S. GAAP measure, is included at the end of this release. Mr. Jay H. Shah, Chief Executive Officer, commented, �We are pleased to have produced another excellent quarter of earnings and to have maintained top-tier operating margins. Our East Coast urban focused hotels performed solidly, led by 14% same-store RevPAR growth from our metro-New York City hotels. The managers of these properties were able to leverage the strategic locations and low effective age of these properties into increased Hotel EBITDA. We believe that possessing a young portfolio, located in high barrier-to-entry markets, is a winning strategy, regardless of the market conditions, given the growth potential these assets can provide in the coming years. To this end, we purchased three additional newly opened hotels during the quarter and one subsequent to the close of the quarter. The median age of our portfolio of hotels is below six years and we believe that this will continue to enhance our growth prospects going forward.� For the three-month period ended June 30, 2008, consolidated total hotel operating revenues increased 9.4% to $67.4 million from $61.6 million in the second quarter of 2007. This increase was primarily driven by our growth in same-store room revenues and revenue contributions from acquisitions completed in prior periods. Revenue per available room (RevPAR) for the Company�s consolidated hotels (59 hotels) increased 4.3% on a year-over-year basis to $109.73, which was driven entirely by an average daily rate (ADR) increase of 6.1% to $139.56. During the quarter, the Company�s hotel managers chose to aggressively maintain rate levels in order to optimize operating margins, resulting in a decline in occupancy, which fell to 78.63% from 79.99%. Hotel earnings before interest, taxes, depreciation and amortization (Hotel EBITDA) for Hersha�s consolidated hotels grew 9.8% to $27.6 million for the second quarter of 2008 compared to the second quarter of 2007. Hotel EBITDA margins of 41.0% for the second quarter of 2008 increased 14 basis points compared to the prior year level. The Company�s portfolio of Hyatt Summerfield Suites experienced margin deterioration due to increased Hyatt brand initiatives and guest reward program expenses. These initiatives, which were implemented in the third quarter of 2007, negatively impacted the Company�s EBITDA margins during the second quarter of 2008. Excluding the Company�s portfolio of Hyatt Summerfield Suites, Hotel EBITDA margins for the consolidated hotels increased 100 basis points. On a same-store basis for Hersha�s consolidated hotels (53 hotels), RevPAR for the second quarter of 2008 increased 4.0% on a year-over-year basis to $109.16, which was driven by a 5.1% increase in ADR to $137.92. Occupancy fell to 79.15% from 80.02%. Same-store Hotel EBITDA for the second quarter of 2008 increased 3.6% to $25.8 million from $24.9 million. The Company�s same-store Hotel EBITDA margin declined 8 basis points to 40.6% for the second quarter of 2008, as compared to the second quarter of 2007 for the reasons discussed above. Excluding the Hyatt Summerfield Suites portfolio, Hotel EBITDA margins increased 97 basis points. Other Highlights In May and June, the Company purchased three newly opened hotels, the 107-suite Towne Place Suites, Harrisburg, Pennsylvania, the 150-room Sheraton Hotel, JFK Airport and the 127-room Holiday Inn Express, Camp Springs (Andrews Air Force Base), Maryland, in separate transactions, for a total of $61.8 million. In July, Hersha opened the nu Hotel in Brooklyn, New York, a 93-room independent boutique hotel newly developed by the Company. The nu Hotel Brooklyn and the Duane Street Hotel (Tribeca) serve as the foundation of Hersha's collection of independent hotels operating in the vibrant metro-New York City market. In August, subsequent to the close of the quarter, the Company purchased a brand new 101-room Hampton Inn, located in Smithfield, Rhode Island for $12.6 million. Balance Sheet The Company ended the second quarter of 2008 with approximately $72.7 million in development loans and approximately $23.4 million in land leases outstanding to 13 hotel development projects. At June 30, 2008, Hersha Hospitality Trust had approximately $721.0 million of total consolidated debt outstanding, which included approximately $51.5 million of trust preferred securities and approximately $47.6 million outstanding on the Company�s line of credit. Fixed rate debt, including variable rate debt fixed by an interest rate swap, amounted to approximately 87.8% of total consolidated debt. For the second quarter of 2008, the weighted average interest rate on all of the Company�s fixed and floating rate debt was approximately 6.13% and 4.83%, respectively. The weighted average life to maturity of the Company�s debt, excluding the credit line, was approximately 8.0 years. Total common shares and units of limited partnership interest of Hersha Hospitality Limited Partnership outstanding at June 30, 2008 were approximately 48.1 million and 8.9 million, respectively. Dividend For the second quarter of 2008, Hersha Hospitality Trust declared common share and limited partnership unit dividends of $0.18 per common share and unit. The Board of Trustees also declared a second quarter cash dividend of $0.50 per Series A Preferred Share. Hersha�s forecasted AFFO for the full year ended December 31, 2008, less maintenance capital expenditures, is expected to exceed its annualized dividend of $0.72 per common share by 1.7 times, providing both coverage for its current dividend and internally generated funds for investment. Financial Outlook for 2008 The Company is revising its previous financial outlook for the full year ended December 31, 2008, as compared to the full year ended December 31, 2007, as a downturn in economic conditions in the U.S., reduced travel capacity from airlines, low consumer confidence and corporate profits have given rise to expectations of lower demand for lodging services from business and leisure travelers in the second half of 2008. The Company�s updated financial guidance and underlying assumptions for the full year ended December 31, 2008 are as follows: � � Prior Guidance � Updated Guidance Consolidated same-store RevPAR growth compared to the full year 2007 � 5.0% to 6.0% � 4.0% to 5.0% Consolidated portfolio RevPAR growth compared to the full year 2007 � 6.0% to 7.0% � 5.0% to 6.0% Net income available to common shareholders � $12.25 to $13.75 million � $13.0 to $14.5 million Adjusted EBITDA � $121.4 to $123.8 million � $124.5 to $126.5 million AFFO per diluted weighted average share/unit � $1.30 to $1.33 � $1.26 to $1.30 �We expect our RevPAR growth for the second half of 2008 to slow in comparison to the strong results we posted in the first half of 2008 and the second half of 2007, but we still believe that our portfolio is well positioned to weather the downturn better than the industry at large. Our net income and EBITDA are expected to be positively impacted by the acquisitions we have completed this year. However, this growth is expected to be offset by the shares and units issued during the second quarter of 2008. Our revised guidance still represents a range of growth in AFFO per share of approximately 4 to 7% for the full year 2008 as compared to 2007, which should further support our strong cash dividend and provide meaningful value to our investors,� Mr. Shah added. Second Quarter 2008 Earnings Conference Call The Company will host a conference call to discuss its financial results at 10:00 AM Eastern time on Tuesday, August 5, 2008. Hosting the call will be Mr. Jay H. Shah, Chief Executive Officer, Mr. Neil H. Shah, President and Chief Operating Officer, and Mr. Ashish Parikh, Chief Financial Officer. The live conference call can be accessed by dialing (888) 245-1007 or (913) 312-1397 for international participants. A replay of the call will be available from 1:00 PM Eastern time on August 5, 2008, through midnight Eastern time on August 19, 2008. The replay can be accessed by dialing (888) 203-1112 or (719) 457-0820 for international participants. The passcode for the call and the replay is 7332814. About Hersha Hospitality Hersha Hospitality Trust is a self-advised real estate investment trust, which owns interests in 77 hotels, totaling 9,752 rooms, primarily along the Northeast Corridor from Boston to Washington D.C. The Company also owns hotels in Northern California and Scottsdale, Arizona. Hersha focuses on high quality upscale hotels in high barrier to entry markets. More information on the Company and its portfolio of hotels is available on Hersha�s Web site at http://www.hersha.com. Forward Looking Statement Certain matters within this press release are discussed using forward-looking language as specified in 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 projected in the forward-looking statement. For a description of these factors, please review the information under the heading �Risk Factors� included in our Annual Report on Form 10-K for the year ended December 31, 2007, filed with the Securities Exchange Commission (SEC). HERSHA HOSPITALITY TRUST Balance Sheet June 30, 2008 (Unaudited) and December 31, 2007 (in thousands, except shares and per share data) � June 30, 2008 � December 31, 2007 Assets: Investment in Hotel Properties, net of Accumulated Depreciation $ 987,235 $ 893,297 Investment in Joint Ventures 50,808 51,851 Development Loans Receivable 72,748 58,183 Cash and Cash Equivalents 16,972 12,327 Escrow Deposits 13,670 13,706 Hotel Accounts Receivable, net of allowance for doubtful accounts of $125 and $47 10,820 7,287 Deferred Costs, net of Accumulated Amortization of $4,150 and $3,252 8,096 8,048 Due from Related Parties 2,481 1,256 Intangible Assets, net of Accumulated Amortization of $862 and $764 8,032 5,619 Other Assets 25,112 16,033 � � Total Assets $ 1,195,974 � $ 1,067,607 � � Liabilities and Shareholders� Equity: Line of Credit $ 47,600 $ 43,700 Mortgages and Notes Payable, net of unamortized discount of $67 and $72 673,447 619,308 Accounts Payable, Accrued Expenses and Other Liabilities 16,659 17,728 Dividends and Distributions Payable 11,236 9,688 Due to Related Parties 2,861 2,025 � � Total Liabilities � 751,803 � � 692,449 � � Minority Interests: Common Units $ 60,437 $ 42,845 Interest in Consolidated Joint Ventures � 1,721 � � 1,908 � � Total Minority Interests � 62,158 � � 44,753 � � Shareholders' Equity: Preferred Shares - 8% Series A, $.01 Par Value, 29,000,000 Shares Authorized, 2,400,000 Shares Issued and Outstanding (Aggregate Liquidation Preference $60,000) 24 24 Common Shares - Class A, $.01 Par Value, 80,000,000 Shares Authorized, 48,137,348 and 41,203,612 Shares Issued and Outstanding at June 30, 2008 and December 31, 2007, respectively 481 412 Common Shares - Class B, $.01 Par Value, 1,000,000 Shares Authorized, None Issued and Outstanding - - Accumulated Other Comprehensive Income (21 ) (23 ) Additional Paid-in Capital 461,802 397,127 Distributions in Excess of Net Income � (80,273 ) � (67,135 ) � Total Shareholders' Equity 382,013 330,405 � � Total Liabilities and Shareholders� Equity $ 1,195,974 � $ 1,067,607 � HERSHA HOSPITALITY TRUST Summary Results (in thousands, except shares and per share data) � Three Months Ended � Six Months Ended June 30, 2008 � June 30, 2007 June 30, 2008 � June 30, 2007 Revenues: Hotel Operating Revenues $ 67,377 $ 61,569 $ 119,296 $ 106,372 Interest Income from Development Loans 2,153 1,331 4,173 2,634 Land Lease Revenue 1,390 1,117 2,724 2,205 Hotel Lease Revenue 211 195 348 332 Other Revenue � 342 � 185 � 594 � 327 � Total Revenues � 71,473 � 64,397 � 127,135 � 111,870 � � Expenses: Hotel Operating Expenses 36,686 33,437 69,118 61,513 Hotel Ground Rent 216 190 442 439 Land Lease Expense 745 619 1,494 1,233 Real Estate and Personal Property Taxes and Property Insurance 2,964 2,753 6,146 5,500 General and Administrative 2,003 1,621 3,906 3,832 Depreciation and Amortization � 10,012 � 8,260 � 19,634 � 16,217 � Total Operating Expenses � 52,626 � 46,880 � 100,740 � 88,734 � � Operating Income 18,847 17,517 26,395 23,136 � Interest Income 101 324 183 454 Interest Expense � 10,346 � 10,701 � 21,123 � 20,738 � Income before income from Unconsolidated Joint Venture Investments, Minority Interests and Discontinued Operations 8,602 7,140 5,455 2,852 � Income from Unconsolidated Joint Venture Investments � 1,360 � 1,741 � 622 � 903 � � Income before Minority Interests and Discontinued Operations 9,962 8,881 6,077 3,755 � Income allocated to Minority Interest in Continuing Operations � 1,737 � 1,167 � 730 � 178 � Income from Continuing Operations � 8,225 � 7,714 � 5,347 � 3,577 � � Discontinued Operations � � � � Income (Loss) from Discontinued Operations � - � 81 � - � (19 ) � Net Income 8,225 7,795 5,347 3,558 Preferred Distributions � 1,200 � 1,200 � 2,400 � 2,400 � � Net Income applicable to Common Shareholders $ 7,025 $ 6,595 $ 2,947 $ 1,158 � � Basic earnings per share Income from continuing operations applicable to common shareholders $ 0.16 $ 0.16 $ 0.07 $ 0.03 Discontinued Operations � 0.00 � 0.00 � 0.00 � 0.00 � � Net Income applicable to common shareholders $ 0.16 $ 0.16 $ 0.07 $ 0.03 � � Diluted earnings per share Income from continuing operations applicable to common shareholders $ 0.16 $ 0.16 $ 0.07 $ 0.03 Discontinued Operations � 0.00 � 0.00 � 0.00 � 0.00 � � Net Income applicable to common shareholders $ 0.16 $ 0.16 $ 0.07 $ 0.03 � � Weighted Average Common Shares Outstanding Basic 44,253,641 40,642,569 42,572,390 40,590,499 Diluted 44,253,641 40,642,569 42,572,390 40,590,499 FFO and GAAP Reconciliation The National Association of Real Estate Investment Trusts (�NAREIT�) developed Funds from Operations (�FFO�) as a non-GAAP financial measure of performance of an equity REIT in order to recognize that income-producing real estate historically has not depreciated on the basis determined under GAAP. We calculate FFO applicable to common shares and Partnership units in accordance with the April 2002 National Policy Bulletin of NAREIT, which we refer to as the White Paper. The White Paper defines FFO as net income (loss) (computed in accordance with GAAP) excluding extraordinary items as defined under GAAP and gains or losses from sales of previously depreciated assets, plus certain non-cash items, such as depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. Our interpretation of the NAREIT definition is that minority interest in net income (loss) should be added back to (deducted from) net income (loss) as part of reconciling net income (loss) to FFO. Our FFO computation may not be comparable to FFO reported by other REITs that do not compute FFO in accordance with the NAREIT definition, or that interpret the NAREIT definition differently than we do. The GAAP measure that we believe to be most directly comparable to FFO, net income (loss) applicable to common shares, includes depreciation and amortization expenses, gains or losses on property sales and minority interest. In computing FFO, we eliminate these items because, in our view, they are not indicative of the results from our property operations. Hersha also presents Adjusted Funds from Operations (AFFO), which reflects FFO in accordance with the NAREIT definition further adjusted by: adding back write-offs of deferred financing costs on debt extinguishment, both for consolidated and unconsolidated properties; adding back amortization of deferred financing costs; making adjustments for the amortization of original issue discount/premium; adding back non-cash stock expense; adding back FFO attributed to our partners in consolidated joint ventures; and making adjustments to ground lease payments, which are required by GAAP to be amortized on a straight-line basis over the term of the lease, to reflect the actual lease payment. FFO and AFFO do not represent cash flows from operating activities in accordance with GAAP and should not be considered an alternative to net income as an indication of Hersha�s performance or to cash flow as a measure of liquidity or ability to make distributions. We consider FFO and AFFO to be meaningful, additional measures of our operating performance because they exclude the effects of the assumption that the value of real estate assets diminishes predictably over time, and because they are widely used by industry analysts as performance measures. We show both FFO from consolidated hotel operations and FFO from unconsolidated joint ventures because we believe it is meaningful for the investor to understand the relative contributions from our consolidated and unconsolidated hotels. The display of both FFO from consolidated hotels and FFO from unconsolidated joint ventures allows for a detailed analysis of the operating performance of our hotel portfolio by management and investors. We present FFO and AFFO applicable to common shares and Partnership units because our Partnership units are redeemable for common shares. We believe it is meaningful for the investor to understand FFO applicable to all common shares and Partnership units. The following table reconciles FFO and AFFO for the periods presented to the most directly comparable GAAP measure, net income (loss) applicable to common shares, for the same periods: HERSHA HOSPITALITY TRUST Adjusted Funds from Operations (AFFO) (in thousands, except shares and per share data) � � � � Three Months Ended Six Months Ended June 30, 2008 June 30, 2007 June 30, 2008 June 30, 2007 � Net income applicable to common shares $ 7,025 $ 6,595 $ 2,947 $ 1,158 Income allocated to minority interest 1,737 1,167 730 178 Income (loss) from discontinued operations allocated to minority interest - 9 - (2 ) Income from unconsolidated joint ventures (1,360 ) (1,741 ) (622 ) (903 ) Depreciation and amortization 10,012 8,260 19,634 16,217 Depreciation and amortization from discontinued operations - 300 - 583 FFO related to the minority interests in consolidated joint ventures � (302 ) � (310 ) � (62 ) � (112 ) Funds from consolidated hotel operations applicable to common shares and Partnership units 17,112 14,280 22,627 17,119 � Income from Unconsolidated Joint Ventures 1,360 1,741 622 903 Add: Depreciation and amortization of purchase price in excess of historical cost 523 451 1,046 945 Interest in depreciation and amortization of unconsolidated joint ventures � 2,175 � � 1,809 � � 3,628 � � 3,002 � Funds from unconsolidated joint venture operations applicable to common shares and Partnership units 4,058 4,001 5,296 4,850 � � � � Funds from Operations applicable to common shares and Partnership units 21,170 18,282 27,924 21,969 � Add: FFO related to the minority interests in consolidated joint ventures 302 310 62 112 Amortization of deferred financing costs 403 410 897 756 Amortization of discounts and premiums (138 ) - (276 ) 16 Non cash stock compensation expense 312 186 627 294 Straight-line amortization of ground lease expense � 64 � � 66 � � 139 � � 133 � � Adjusted Funds from Operations $ 22,113 � $ 19,253 � $ 29,372 � $ 23,280 � � AFFO per Diluted Weighted Average Common Shares and Units Outstanding $ 0.43 � $ 0.42 � $ 0.59 � $ 0.51 � � Diluted Weighted Average Common Shares and Units Outstanding 51,700,790 45,542,425 49,885,364 45,244,074 HERSHA HOSPITALITY TRUST Adjusted Funds from Operations (FFO) - 2008 FORECAST RECONCILIATION (in thousands, except shares and per share data) � Low � High Twelve Months Ending � 12/31/2008 � � 12/31/2008 � � Net Income applicable to common shares $ 13,000 $ 14,500 Less: (Income) from Unconsolidated Joint Ventures (2,500 ) (3,300 ) FFO related to the minority interests in consolidated joint ventures (450 ) (550 ) Add: Income allocated to minority interest in our operating partnership 3,000 3,500 Depreciation and amortization � 41,000 � � 41,000 � Funds from Consolidated Hotel Operations 54,050 55,150 � Income from Unconsolidated Joint Ventures 2,500 3,300 Add: Depreciation and amortization � 7,200 � � 7,200 � Funds from Unconsolidated Joint Venture Operations 9,700 10,500 � � Funds from Operations 63,750 65,650 � Add: FFO related to the minority interests in consolidated joint ventures 450 550 Amortization of deferred financing costs 1,700 1,700 Amortization of OID Discount/Premium (550 ) (550 ) Non cash stock expense 1,500 1,500 Amortization of ground lease expense � 275 � � 275 � � Adjusted Funds from Operations $ 67,125 � $ 69,125 � � Diluted Weighted Average Common Shares and Units Outstanding 53,225,000 53,225,000 Adjusted FFO per Diluted Weighted Average Common Shares and Units Outstanding $ 1.26 � $ 1.30 � EBITDA and GAAP Reconciliation Earnings Before Interest, Taxes, and Depreciation and Amortization (EBITDA) and Adjusted EBITDA are non-GAAP financial measure within the meaning of the Securities and Exchange Commission rules. Our interpretation of Adjusted EBITDA is that EBITDA derived from our investment in unconsolidated joint ventures should be added back to net income (loss) as part of reconciling net income (loss) to Adjusted EBITDA. Our Adjusted EBITDA computation August not be comparable to EBITDA reported by other companies that interpret the definition of EBITDA differently than we do. Management believes EBITDA to be a meaningful measure of a REIT's performance because it is widely followed by industry analysts, lenders and investors and that it should be considered along with, but not as an alternative to, net income, cash flow, FFO and AFFO, as a measure of the company's operating performance. Hotel EBITDA is a commonly used measure of performance in the hotel industry for a specific hotel or group of hotels. We believe Hotel EBITDA provides a more complete understanding of the operating results of the individual hotel or group of hotels. We calculate Hotel EBITDA by utilizing the total revenues generated from hotel operations less all operating expenses, property taxes, insurance and management fees, which calculation excludes Company expenses not specific to a hotel. Because Hotel EBITDA is specific to individual hotels or groups of hotels and not to the Company as a whole, it is not reconcilable to any comparable GAAP measure for the Company. HERSHA HOSPITALITY TRUST Adjusted EBITDA (in thousands, except shares and per share data) � Three Months Ended � Six Months Ended June 30, 2008 � June 30, 2007 June 30, 2008 � June 30, 2007 � Net Income applicable to common shares $ 7,025 $ 6,595 $ 2,947 $ 1,158 Less: Income from Unconsolidated Joint Ventures (1,360 ) (1,741 ) (622 ) (903 ) Interest income (101 ) (324 ) (183 ) (454 ) Add: Income allocated to minority interest for continuing operations 1,737 1,167 730 178 Income (Loss) allocated to minority interest for discontinued operations and gain on disposition of hotel properties - 9 - (2 ) Interest expense from continuing operations 10,346 10,701 21,123 20,738 Interest expense from discontinued operations - 274 - 547 Distributions to Series A Preferred Shareholders 1,200 1,200 2,400 2,400 Depreciation and amortization from continuing operations 10,012 8,260 19,634 16,217 Depreciation from discontinued operations - 300 - 583 Non-cash stock compensation expense 312 186 627 294 Straight-line amortization of ground lease expense � 64 � � 66 � � 139 � � 133 � � Adjusted EBITDA from consolidated hotel operations � 29,235 � � 26,693 � � 46,795 � � 40,889 � � Income from Unconsolidated Joint Ventures 1,360 1,741 622 903 Add: Depreciation and amortization of purchase price in excess of historical cost 523 451 1,046 945 Adjustment for interest in interest expense, depreciation and amortization of unconsolidated joint ventures � 5,708 � � 6,341 � � 10,482 � � 10,583 � � Adjusted EBITDA from unconsolidated joint venture operations � 7,591 � � 8,533 � � 12,150 � � 12,431 � � Adjusted EBITDA $ 36,826 � $ 35,226 � $ 58,945 � $ 53,320 � HERSHA HOSPITALITY TRUST Adjusted EBITDA - 2008 FORECAST RECONCILIATION (in thousands, except shares and per share data) � Low High Twelve Months Ended � 12/31/2008 � � 12/31/2008 � � Net Income applicable to common shares $ 13,000 $ 14,500 Less: Income from Unconsolidated Joint Ventures (2,500 ) (3,300 ) Interest income (500 ) (500 ) Add: Income allocated to minority interest in common units 3,000 3,500 Interest expense 42,000 42,000 Distributions to Series A Preferred Shareholders 4,800 4,800 Depreciation and amortization from continuing operations 41,000 41,000 Amortization of deferred financing costs 1,700 1,700 Non cash stock expense 1,500 1,500 Amortization of ground lease expense � 275 � � 275 � � Adjusted EBITDA from consolidated hotel operations � 104,275 � � 105,475 � � Income (Loss) from Unconsolidated Joint Ventures 2,500 3,300 Add: Interest expense 10,500 10,500 Depreciation and amortization of purchase price in excess of historical cost 2,100 2,100 Interest in depreciation and amortization of unconsolidated joint venture � 5,100 � � 5,100 � � Adjusted EBITDA from unconsolidated joint venture operations � 20,200 � � 21,000 � � Adjusted EBITDA $ 124,475 � $ 126,475 � Supplemental Schedules The company has published supplemental earnings schedules in order to provide additional disclosure and financial information for the benefit of the company's stakeholders. These can found in the Investor Relations section and the �SEC Filings and Presentations� page of the Company�s Web site, www.hersha.com.