Hersha Hospitality Trust (HT) Stock

Presented at the NYU International Hospitality Industry Investment Conference; First Time the Award Presented to a Family Presented at the NYU International Hospitality Industry Investment Conference; First Time the Award Presented to a Family

PHILADELPHIA, Oct. 03, 2023 (GLOBE NEWSWIRE) -- Hersha Hospitality Trust (NYSE: HT) (“Hersha” or the “Company”), owner of luxury and lifestyle hotels in coastal gateway and resort markets, announced that it has set November 8, 2023 as the date for the special meeting of shareholders (the “Special Meeting”) to approve the previously announced acquisition by affiliates of KSL Capital Partners, LLC ("KSL"), a leading investor in travel and leisure businesses.

Hersha Hospitality Trust agreed to be acquired by private equity firm KSL Capital Partners at a 60% premium to Friday's closing price. The deal still requires shareholder approval, but is expected to close by the end of 2023.

Shares of Hersha Hospitality Trust HT, soared 56.7% toward an eight-month high in premarket trading Monday, after the real estate investment trust focused on the hospitality sector announced an agreement to be acquired by private equity firm KSL Capital Partners LLC in a cash deal valued at $1.4 billion. Under terms of the deal, KSL will pay $10 in cash for each Hersha share outstanding, which represents a 59.2% premium to Friday's closing price of $6.28.

Although the revenue and EPS for Hersha Hospitality (HT) give a sense of how its business performed in the quarter ended June 2023, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.

Hersha Hospitality (HT) came out with quarterly funds from operations (FFO) of $0.38 per share, missing the Zacks Consensus Estimate of $0.41 per share. This compares to FFO of $0.56 per share a year ago.

The article discusses an arbitrage opportunity between Hersha Hospitality Trust 6.875% Series C Preferred and Hersha Hospitality Trust 6.50% Series E Preferred. I highlight the challenges of arbitrage trading within small-cap issues, including illiquidity and low trading volumes. Despite these challenges, I argue that attentive, active investors can achieve superior results through disciplined investment strategies.

Hersha Hospitality Trust is a hospitality REIT focused on luxury, upscale, and upper midscale hotels in key markets such as New York City, Boston, Washington D.C., and Philadelphia. The company has recently reinstated its dividend and pays a forward dividend yield of 3.30%, with several valuation metrics indicating that the company is undervalued at present. However, concerns over the company's financial performance, including a declining AFFO over the past few years, make it a "Hold" for investors seeking better opportunities in the hospitality industry.

Hersha Hospitality Trust is a real estate investment trust specializing in upscale and luxury hotels. The company has been recovering well after Covid and has been increasing its revenue. After analyzing this company, I believe it is worth investing in.