Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Mar. 29, 2021 | Jun. 30, 2020 | |
Statement | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-14765 | ||
Entity Registrant Name | HERSHA HOSPITALITY TRUST | ||
Entity Incorporation, State or Country Code | MD | ||
Entity Tax Identification Number | 25-1811499 | ||
Entity Address, Address Line One | 44 Hersha Drive | ||
Entity Address, City or Town | Harrisburg | ||
Entity Address, State or Province | PA | ||
Entity Address, Postal Zip Code | 17102 | ||
City Area Code | 717 | ||
Local Phone Number | 236-4400 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 223.4 | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive proxy statement, to be filed with the Securities and Exchange Commission not later than 120 days after the end of the registrant’s last fiscal year pursuant to Regulation 14A, are incorporated herein by reference into Part II, Item 5 and Part III. | ||
Entity Central Index Key | 0001063344 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Class A Common Shares | |||
Statement | |||
Title of 12(b) Security | Class A Common Shares of Beneficial Interest, par value $.01 per share | ||
Trading Symbol | HT | ||
Security Exchange Name | NYSE | ||
Shares outstanding (shares) | 39,132,307 | ||
Series C | |||
Statement | |||
Title of 12(b) Security | 6.875% Series C Cumulative Redeemable Preferred Shares of Beneficial Interest, par value $.01 per share | ||
Trading Symbol | HT-PC | ||
Security Exchange Name | NYSE | ||
Series D | |||
Statement | |||
Title of 12(b) Security | 6.50% Series D Cumulative Redeemable Preferred Shares of Beneficial Interest, par value $.01 per share | ||
Trading Symbol | HT-PD | ||
Security Exchange Name | NYSE | ||
Series E | |||
Statement | |||
Title of 12(b) Security | 6.50% Series E Cumulative Redeemable Preferred Shares of Beneficial Interest, par value $.01 per share | ||
Trading Symbol | HT-PE | ||
Security Exchange Name | NYSE | ||
Class B Common Shares | |||
Statement | |||
Shares outstanding (shares) | 0 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Assets: | ||
Investment in Hotel Properties, Net of Accumulated Depreciation | $ 1,784,838 | $ 1,975,973 |
Investment in Unconsolidated Joint Ventures | 6,633 | 8,446 |
Cash and Cash Equivalents | 16,637 | 27,012 |
Escrow Deposits | 6,970 | 9,973 |
Hotel Accounts Receivable | 5,690 | 9,213 |
Due from Related Parties | 2,641 | 6,113 |
Intangible Assets, Net of Accumulated Amortization of $6,840 and $6,545 | 1,739 | 2,137 |
Right of Use Assets | 44,126 | 45,384 |
Other Assets | 15,494 | 38,177 |
Hotel Assets Held for Sale | 96,220 | 0 |
Total Assets | 1,980,988 | 2,122,428 |
Liabilities and Equity: | ||
Line of Credit | 133,053 | 48,000 |
Secured Term Loans, Net of Unamortized Deferred Financing Costs | 681,744 | 697,183 |
Unsecured Notes Payable, Net of Unamortized Deferred Financing Costs | 50,789 | 50,736 |
Mortgages Payable, Net of Unamortized Premium and Unamortized Deferred Financing Costs | 330,848 | 332,280 |
Lease Liabilities | 53,852 | 54,548 |
Accounts Payable, Accrued Expenses and Other Liabilities | 58,453 | 47,626 |
Dividends and Distributions Payable | 0 | 17,058 |
Total Liabilities | 1,308,739 | 1,247,431 |
Redeemable Noncontrolling Interests - Consolidated Joint Venture (Note 1) | 0 | 3,196 |
Shareholders' Equity: | ||
Preferred Shares: $.01 Par Value, 29,000,000 Shares Authorized, 3,000,000 Series C, 7,701,700 Series D and 4,001,514 Series E Shares Issued and Outstanding at December 31, 2020 and December 31, 2019, with Liquidation Preferences of $25 Per Share | 147 | 147 |
Accumulated Other Comprehensive (Loss) Income | (19,275) | 1,010 |
Additional Paid-in Capital | 1,150,985 | 1,144,808 |
Distributions in Excess of Net Income | (509,243) | (338,695) |
Total Shareholders' Equity | 623,003 | 807,657 |
Noncontrolling Interests (Note 1): | 49,246 | 64,144 |
Total Equity | 672,249 | 871,801 |
Total Liabilities, Redeemable Noncontrolling Interests, and Equity | 1,980,988 | 2,122,428 |
Class A Common Shares | ||
Shareholders' Equity: | ||
Common Shares | 389 | 387 |
Class B Common Shares | ||
Shareholders' Equity: | ||
Common Shares | $ 0 | $ 0 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Assets: | ||
Intangible assets, accumulated amortization | $ 6,840 | $ 6,545 |
Shareholders' Equity: | ||
Preferred Shares - Outstanding (in shares) | 14,703,214 | 14,703,214 |
Series C, D and E Preferred Shares | ||
Shareholders' Equity: | ||
Preferred Shares - Par Value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred Shares - Authorized (in shares) | 29,000,000 | 29,000,000 |
Preferred Shares - Liquidation Preference Value (in dollars per share) | $ 25 | $ 25 |
Series C | ||
Shareholders' Equity: | ||
Preferred Shares - Issued (in shares) | 3,000,000 | 3,000,000 |
Preferred Shares - Outstanding (in shares) | 3,000,000 | 3,000,000 |
Series D | ||
Shareholders' Equity: | ||
Preferred Shares - Issued (in shares) | 7,701,700 | 7,701,700 |
Preferred Shares - Outstanding (in shares) | 7,701,700 | 7,701,700 |
Series E | ||
Shareholders' Equity: | ||
Preferred Shares - Issued (in shares) | 4,001,514 | 4,001,514 |
Preferred Shares - Outstanding (in shares) | 4,001,514 | 4,001,514 |
Class A Common Shares | ||
Shareholders' Equity: | ||
Common Shares - Par Value (in dollars per share) | $ 0.01 | $ 0.01 |
Common Shares - Authorized (in shares) | 104,000,000 | 104,000,000 |
Common Shares - Issued (in shares) | 38,843,482 | 38,652,650 |
Common Shares - Outstanding (in shares) | 38,843,482 | 38,652,650 |
Class B Common Shares | ||
Shareholders' Equity: | ||
Common Shares - Par Value (in dollars per share) | $ 0.01 | $ 0.01 |
Common Shares - Authorized (in shares) | 1,000,000 | 1,000,000 |
Common Shares - Issued (in shares) | 0 | 0 |
Common Shares - Outstanding (in shares) | 0 | 0 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Revenue: | ||||
Other Revenues | $ 217 | $ 292 | $ 1,385 | |
Total Revenues | 176,660 | 529,960 | 495,063 | |
Operating Expenses: | ||||
Hotel Ground Rent | 4,301 | 4,581 | 4,228 | |
Real Estate and Personal Property Taxes and Property Insurance | 40,928 | 38,601 | 35,194 | |
General and Administrative (including Share Based Payments of $9,488, $10,803, and $11,436 for the years ended December 31, 2020, 2019, and 2018, respectively) | 20,078 | 26,431 | 26,881 | |
Acquisition and Terminated Transaction Costs | 4,419 | 0 | 29 | |
Loss on Impairment of Assets | 1,069 | 0 | 0 | |
Depreciation and Amortization | 96,958 | 96,529 | 89,831 | |
(Gains from) Property Losses in Excess of Insurance Recoveries | (8,960) | 12 | (12,649) | |
Total Operating Expenses | 299,049 | 483,590 | 442,363 | |
Operating (Loss) Income | (122,389) | 46,370 | 52,700 | |
Interest Income | 39 | 253 | 114 | |
Interest Expense | (53,279) | (52,205) | (48,491) | |
Other Expense | (522) | (584) | (901) | |
Gain on Disposition of Hotel Properties | 1,158 | 0 | 4,148 | |
Loss on Debt Extinguishment | 0 | (280) | (22) | |
(Loss) Income Before Results from Unconsolidated Joint Venture Investments and Income Taxes | (174,993) | (6,446) | 7,548 | |
Income (Loss) from Unconsolidated Joint Ventures | (2,938) | 691 | 1,084 | |
(Loss) Income Before Income Taxes | (177,931) | (5,755) | 8,632 | |
Income Tax Expense | (11,329) | (92) | (267) | |
Net (Loss) Income | (189,260) | (5,847) | 8,365 | |
Preferred Distributions | (24,176) | (24,174) | (24,174) | |
Net Loss Applicable to Common Shareholders | $ (190,521) | $ (27,843) | $ (14,184) | |
BASIC | ||||
(Loss) Income from Continuing Operations Applicable to Common Shareholders (in dollars per share) | $ (4.93) | $ (0.74) | $ (0.38) | |
DILUTED | ||||
(Loss) Income from Continuing Operations Applicable to Common Shareholders (in dollars per share) | $ (4.93) | $ (0.74) | $ (0.38) | |
Weighted Average Common Shares Outstanding: | ||||
Basic (in shares) | 38,613,563 | 38,907,894 | 39,383,763 | |
Diluted (in shares) | [1] | 38,613,563 | 38,907,894 | 39,383,763 |
Noncontrolling Interests Common Units And LTIP Units | ||||
Operating Expenses: | ||||
Net (Loss) Income | $ (19,698) | $ (2,366) | $ (916) | |
(Income) Loss Allocated to Noncontrolling Interests | 19,698 | 2,366 | 916 | |
Consolidated Joint Ventures | ||||
Operating Expenses: | ||||
Net (Loss) Income | (21) | (300) | (3,417) | |
(Income) Loss Allocated to Noncontrolling Interests | 3,217 | (188) | 709 | |
Room | ||||
Revenue: | ||||
Hotel Operating Revenues | 142,260 | 424,698 | 397,907 | |
Operating Expenses: | ||||
Hotel Operating Expenses | 38,787 | 93,488 | 88,663 | |
Food & Beverage | ||||
Revenue: | ||||
Hotel Operating Revenues | 15,418 | 65,379 | 64,546 | |
Operating Expenses: | ||||
Hotel Operating Expenses | 16,199 | 52,820 | 52,122 | |
Other Operating | ||||
Revenue: | ||||
Hotel Operating Revenues | 18,765 | 39,591 | 31,225 | |
Operating Expenses: | ||||
Hotel Operating Expenses | $ 85,270 | $ 171,128 | $ 158,064 | |
[1] | Income allocated to noncontrolling interest in Hersha Hospitality Limited Partnership (the “Operating Partnership” or “HHLP”) has been excluded from the numerator and the Class A common shares issuable upon any redemption of the Operating Partnership’s common units of limited partnership interest (“Common Units”) and the Operating Partnership’s vested LTIP units (“Vested LTIP Units”) have been omitted from the denominator for the purpose of computing diluted earnings per share because the effect of including these shares and units in the numerator and denominator would have no impact. In addition, potentially dilutive common shares, if any, have been excluded from the denominator if they are anti-dilutive to income applicable to common shareholders. |
Consolidated Statements Of Op_2
Consolidated Statements Of Operations (Parenthetical) - shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Potentially dilutive securities that have been excluded from earnings per share: | |||
Potentially Dilutive Securities Excluded from the Denominator (in shares) | 5,452,726 | 4,482,199 | 4,027,511 |
Common Units and Vested LTIP Units | |||
Potentially dilutive securities that have been excluded from earnings per share: | |||
Potentially Dilutive Securities Excluded from the Denominator (in shares) | 3,926,767 | 3,363,169 | 3,141,981 |
Unvested Stock Awards and LTIP Units Outstanding | |||
Potentially dilutive securities that have been excluded from earnings per share: | |||
Potentially Dilutive Securities Excluded from the Denominator (in shares) | 971,287 | 651,093 | 358,141 |
Contingently Issuable Share Awards | |||
Potentially dilutive securities that have been excluded from earnings per share: | |||
Potentially Dilutive Securities Excluded from the Denominator (in shares) | 554,672 | 467,937 | 527,389 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net (Loss) Income | $ (189,260) | $ (5,847) | $ 8,365 |
Other Comprehensive Income (Loss) | |||
Change in Fair Value of Derivative Instruments | (26,431) | (4,502) | 3,343 |
Less: Reclassification Adjustment for Change in Fair Value of Derivative Instruments Included in Net Income | 4,083 | 1,007 | (2,827) |
Total Other Comprehensive (Loss) Income | (22,348) | (3,495) | 516 |
Comprehensive (Loss) Income | (211,608) | (9,342) | 8,881 |
Less: Preferred Distributions | (24,176) | (24,174) | (24,174) |
Comprehensive Loss Applicable to Common Shareholders | (210,806) | (31,060) | (13,706) |
Noncontrolling Interests Common Units And LTIP Units | |||
Net (Loss) Income | (19,698) | (2,366) | (916) |
Other Comprehensive Income (Loss) | |||
Less: Comprehensive Loss (Income) Applicable to Noncontrolling Interests | 21,761 | 2,644 | 878 |
Consolidated Joint Ventures | |||
Net (Loss) Income | (21) | (300) | (3,417) |
Other Comprehensive Income (Loss) | |||
Less: Comprehensive Loss (Income) Applicable to Noncontrolling Interests | $ 3,217 | $ (188) | $ 709 |
Consolidated Statements Of Equi
Consolidated Statements Of Equity - USD ($) $ in Thousands | Total | Common Shares | Common SharesAdjusted Balance | Common SharesClass A Common Shares | Common SharesClass A Common SharesAdjusted Balance | Common SharesClass B Common Shares | Common SharesClass B Common SharesAdjusted Balance | Preferred Shares | Preferred SharesAdjusted Balance | Additional Paid-In Capital | Additional Paid-In CapitalAdjusted Balance | Accumulated Other Comprehensive Income | Accumulated Other Comprehensive IncomeAdjusted Balance | Distributions in Excess of Net Income | Distributions in Excess of Net IncomeAdjustment | Distributions in Excess of Net IncomeAdjusted Balance | Total Shareholders' Equity | Total Shareholders' EquityAdjustment | Total Shareholders' EquityAdjusted Balance | Noncontrolling Interests Common Units And LTIP Units | Noncontrolling Interests Common Units And LTIP UnitsAdjustment | Noncontrolling Interests Common Units And LTIP UnitsAdjusted Balance | Total Equity | Total EquityAdjustment | Total EquityAdjusted Balance | Consolidated Joint Venture | Consolidated Joint VentureAdjusted Balance |
Beginning Balance at Dec. 31, 2017 | $ 399 | $ 399 | $ 0 | $ 0 | $ 147 | $ 147 | $ 1,164,946 | $ 1,164,946 | $ 3,749 | $ 3,749 | $ (335,373) | $ 123,228 | $ (212,145) | $ 833,868 | $ 123,228 | $ 957,096 | $ 54,286 | $ 5,793 | $ 60,079 | $ 888,154 | $ 129,021 | $ 1,017,175 | $ 0 | $ 0 | |||
Beginning Balance (in shares) at Dec. 31, 2017 | 39,916,661 | 39,916,661 | 14,701,700 | 14,701,700 | 3,223,366 | 3,223,366 | |||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||||||||||||||
Unit Conversion | 1 | 1,172 | 1,173 | $ (1,173) | |||||||||||||||||||||||
Unit Conversion (in shares) | 62,807 | 62,807 | (62,807) | ||||||||||||||||||||||||
Repurchase of Common Shares | (6) | (10,827) | (10,833) | (10,833) | |||||||||||||||||||||||
Repurchase of Common Shares (in shares) | (635,590) | ||||||||||||||||||||||||||
Preferred Shares | (128) | (128) | (128) | ||||||||||||||||||||||||
Preferred Shares ATM Issuance, Net of Costs (in shares) | 1,514 | ||||||||||||||||||||||||||
Dividends and Distributions declared: | |||||||||||||||||||||||||||
Common Shares | (44,119) | (44,119) | (44,119) | ||||||||||||||||||||||||
Preferred Shares | (24,174) | (24,174) | (24,174) | ||||||||||||||||||||||||
Common Units | $ (2,331) | (2,331) | |||||||||||||||||||||||||
LTIP Units | $ (1,980) | (1,980) | |||||||||||||||||||||||||
Dividend Reinvestment Plan | $ 77 | 77 | 77 | 77 | |||||||||||||||||||||||
Dividend Reinvestment Plan (in shares) | 4,132 | ||||||||||||||||||||||||||
Share Based Compensation: | |||||||||||||||||||||||||||
Grants | 1 | 997 | 998 | 998 | |||||||||||||||||||||||
Grants (in shares) | 110,616 | 589,106 | |||||||||||||||||||||||||
Amortization | 2,247 | 2,247 | $ 8,293 | 10,540 | |||||||||||||||||||||||
Equity Contribution to Consolidated Joint Venture | 3,417 | ||||||||||||||||||||||||||
Change in Fair Value of Derivative Instruments | 516 | 478 | 478 | 38 | 516 | ||||||||||||||||||||||
Adjustment to Record Noncontrolling Interest at Redemption Value | (2,708) | (2,708) | (2,708) | 2,708 | |||||||||||||||||||||||
Net Income (Loss) | $ 8,365 | 12,698 | 12,698 | (916) | 11,782 | (3,417) | |||||||||||||||||||||
Ending Balance at Dec. 31, 2018 | 395 | 0 | $ 147 | 1,155,776 | 4,227 | (267,740) | 892,805 | $ 62,010 | 954,815 | 2,708 | |||||||||||||||||
Ending Balance (in shares) at Dec. 31, 2018 | 39,458,626 | 14,703,214 | 3,749,665 | ||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||||||||||||||
Unit Conversion (in shares) | 0 | ||||||||||||||||||||||||||
Repurchase of Common Shares | (9) | (14,277) | (14,286) | (14,286) | |||||||||||||||||||||||
Repurchase of Common Shares (in shares) | (933,436) | (933,436) | |||||||||||||||||||||||||
Dividends and Distributions declared: | |||||||||||||||||||||||||||
Common Shares | (43,600) | (43,600) | (43,600) | ||||||||||||||||||||||||
Preferred Shares | (24,174) | (24,174) | (24,174) | ||||||||||||||||||||||||
Common Units | $ (2,314) | (2,314) | |||||||||||||||||||||||||
LTIP Units | $ (2,601) | (2,601) | |||||||||||||||||||||||||
Dividend Reinvestment Plan | $ 60 | 60 | 60 | 60 | |||||||||||||||||||||||
Dividend Reinvestment Plan (in shares) | 3,760 | ||||||||||||||||||||||||||
Share Based Compensation: | |||||||||||||||||||||||||||
Grants | 1 | 675 | 676 | 676 | |||||||||||||||||||||||
Grants (in shares) | 123,700 | 530,281 | |||||||||||||||||||||||||
Amortization | 3,062 | 3,062 | $ 9,693 | 12,755 | |||||||||||||||||||||||
Equity Contribution to Consolidated Joint Venture | 300 | ||||||||||||||||||||||||||
Change in Fair Value of Derivative Instruments | (3,495) | (3,217) | (3,217) | (278) | (3,495) | ||||||||||||||||||||||
Adjustment to Record Noncontrolling Interest at Redemption Value | (488) | (488) | (488) | 488 | |||||||||||||||||||||||
Net Income (Loss) | (5,847) | (3,181) | (3,181) | (2,366) | (5,547) | (300) | |||||||||||||||||||||
Ending Balance at Dec. 31, 2019 | $ 871,801 | 387 | 0 | $ 147 | 1,144,808 | 1,010 | (338,695) | 807,657 | $ 64,144 | 871,801 | 3,196 | ||||||||||||||||
Ending Balance (in shares) at Dec. 31, 2019 | 38,652,650 | 14,703,214 | 4,279,946 | ||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||||||||||||||
Unit Conversion (in shares) | 0 | ||||||||||||||||||||||||||
Issuance Costs | (137) | (137) | (137) | ||||||||||||||||||||||||
Dividends and Distributions declared: | |||||||||||||||||||||||||||
Preferred Shares | (1,007) | (1,007) | (1,007) | ||||||||||||||||||||||||
Dividend Reinvestment Plan | $ 14 | 14 | 14 | 14 | |||||||||||||||||||||||
Dividend Reinvestment Plan (in shares) | 1,094 | ||||||||||||||||||||||||||
Share Based Compensation: | |||||||||||||||||||||||||||
Grants | 2 | (2) | |||||||||||||||||||||||||
Grants (in shares) | 189,738 | 1,112,862 | |||||||||||||||||||||||||
Amortization | 3,106 | 3,106 | $ 6,863 | 9,969 | |||||||||||||||||||||||
Equity Contribution to Consolidated Joint Venture | 21 | ||||||||||||||||||||||||||
Change in Fair Value of Derivative Instruments | 22,348 | (20,285) | (20,285) | (2,063) | (22,348) | ||||||||||||||||||||||
Adjustment to Record Noncontrolling Interest at Redemption Value | 3,196 | 3,196 | 3,196 | (3,196) | |||||||||||||||||||||||
Net Income (Loss) | (189,260) | (169,541) | (169,541) | (19,698) | (189,239) | (21) | |||||||||||||||||||||
Ending Balance at Dec. 31, 2020 | $ 672,249 | $ 389 | $ 0 | $ 147 | $ 1,150,985 | $ (19,275) | $ (509,243) | $ 623,003 | $ 49,246 | $ 672,249 | $ 0 | ||||||||||||||||
Ending Balance (in shares) at Dec. 31, 2020 | 38,843,482 | 14,703,214 | 5,392,808 |
Consolidated Statements Of Eq_2
Consolidated Statements Of Equity (Parenthetical) - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Dividends [Abstract] | ||
Common Stock, Dividends declared (in dollars per share) | $ 1.12 | $ 1.12 |
Common Units, Distributions declared (in dollars per share) | 1.12 | 1.12 |
LTIP Units, Distributions declared (in dollars per share) | $ 1.12 | $ 1.12 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating Activities: | |||
Net (Loss) Income | $ (189,260) | $ (5,847) | $ 8,365 |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | |||
Gain on Disposition of Hotel Properties, Net | (1,158) | 0 | (4,148) |
Property Impairment and Terminated Transaction Costs | 5,488 | 0 | 0 |
(Gains from) Property Losses in Excess of Insurance Recoveries | (8,960) | 12 | (12,649) |
Deferred Taxes | 11,290 | (312) | (144) |
Depreciation | 96,527 | 95,982 | 88,897 |
Amortization | 3,540 | 2,137 | 2,816 |
Loss on Debt Extinguishment | 0 | 280 | 22 |
Equity in (Income) Loss of Unconsolidated Joint Ventures | 2,938 | (691) | (1,084) |
Loss Recognized on Change in Fair Value of Derivative Instrument | 4,084 | 1,007 | 215 |
Share Based Compensation Expense | 9,488 | 10,803 | 11,436 |
Distributions from Unconsolidated Joint Ventures | 0 | 728 | 1,426 |
Proceeds Received for Business Interruption Insurance Claims, net | 4,411 | 0 | 8,440 |
(Increase) Decrease in: | |||
Hotel Accounts Receivable | 3,523 | 1,028 | 1,760 |
Other Assets | 7,738 | (1,476) | (2,556) |
Due from Related Parties | 3,472 | (2,819) | 1,307 |
(Decrease) Increase in: | |||
Accounts Payable, Accrued Expenses and Other Liabilities | (10,586) | 2,280 | 10,719 |
Net Cash (Used in) Provided by Operating Activities | (57,465) | 103,112 | 114,822 |
Investing Activities: | |||
Purchase of Hotel Property Assets | 0 | 0 | (41,230) |
Deposits on Hotel Acquisitions | 0 | 0 | 0 |
Capital Expenditures | (26,340) | (48,936) | (65,629) |
Cash Paid for Hotel Development Projects | 21 | ||
Cash Paid for Hotel Development Projects | (152) | (38,754) | |
Proceeds from Disposition of Hotel Properties | 19,591 | 0 | 64,880 |
Contributions to Unconsolidated Joint Ventures | (1,125) | (6,100) | (1,000) |
Proceeds from Insurance Claims | 6,338 | 0 | 15,806 |
Distributions from Unconsolidated Joint Ventures | 0 | 1,622 | 47,962 |
Net Cash Used in Investing Activities | (1,515) | (53,566) | (17,965) |
Financing Activities: | |||
Borrowings Under Line of Credit | 88,000 | 38,000 | |
Repayment of Borrowings Under Line of Credit | (2,947) | 0 | (6,100) |
Repayment of Borrowings Under Secured Term Loan | (16,395) | 0 | (18,000) |
Principal Repayment of Mortgages and Notes Payable | (1,684) | (57,418) | (1,611) |
Proceeds from Mortgages and Notes Payable | 0 | 56,469 | 28,000 |
Cash Paid for Deferred Financing Costs | (3,188) | (3,198) | (409) |
Cash Paid for Debt Extinguishment | 0 | (210) | 0 |
Repurchase of Common Shares | 0 | (14,195) | (10,833) |
Dividends Paid on Common Shares | (10,809) | (43,760) | (44,176) |
Dividends Paid on Preferred Shares | (6,044) | (24,173) | (24,174) |
Distributions Paid on Common Units and LTIP Units | (1,198) | (4,768) | (4,164) |
Other Financing Activities | (133) | (91) | (193) |
Net Cash Provided (Used in) by Financing Activities | 45,602 | (53,344) | (81,660) |
Net (Decrease) Increase in Cash and Cash Equivalents | (13,378) | (3,798) | 15,197 |
Cash, Cash Equivalents, and Restricted Cash - Beginning of Period | 36,985 | 40,783 | 25,586 |
Cash, Cash Equivalents, and Restricted Cash - End of Period | $ 23,607 | $ 36,985 | $ 40,783 |
Organization And Summary Of Sig
Organization And Summary Of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization And Summary Of Significant Accounting Policies | ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Hersha Hospitality Trust (“we” or the “Company”) was formed in May 1998 as a self-administered, Maryland real estate investment trust. We have elected to be taxed and expect to continue to elect to be taxed as a real estate investment trust, or REIT, for federal income tax purposes. The Company owns a controlling general partnership interest in Hersha Hospitality Limited Partnership (“HHLP” or the “Partnership”), which owns a 99% limited partnership interest in various subsidiary partnerships. Hersha Hospitality, LLC (“HHLLC”), a Virginia limited liability company, owns a 1% general partnership interest in the subsidiary partnerships and the Partnership is the sole member of HHLLC. The Partnership owns a taxable REIT subsidiary (“TRS”), 44 New England Management Company (“44 New England” or “TRS Lessee”), which leases certain of the Company’s hotels. Hersha’s common shares of beneficial interest trade on the New York Stock Exchange (“the NYSE”) under the ticker symbol "HT," its 6.875% Series C Cumulative Redeemable Preferred Shares of Beneficial Interest trade on the NYSE under the ticker symbol “HT PRC,” its 6.500% Series D Cumulative Redeemable Preferred Shares of Beneficial Interest trade on the NYSE under the ticker symbol “HT PRD,” and it’s 6.500% Series E Cumulative Redeemable Preferred Shares of Beneficial Interest trade on the NYSE under the ticker symbol “HT PRE.” As of December 31, 2020, the Company, through the Partnership and subsidiary partnerships, wholly owned 37 limited and full service hotels. All of the wholly owned hotel facilities are leased to the Company’s TRS, 44 New England. In addition to the wholly owned hotel properties, as of December 31, 2020, the Company owned an unconsolidated joint venture interest in ten properties and a consolidated joint venture interest in one property. The properties owned by the joint ventures are leased to a TRS owned by the joint venture or to an entity owned by the joint venture partners and 44 New England. The following table lists the properties owned by these joint ventures: Joint Venture Ownership Interest Property Location Lessee/Sublessee Consolidated Joint Ventures Hersha Holding RC Owner, LLC 85% Ritz-Carlton Coconut Grove, FL Hersha Holding RC Lessee, LLC Unconsolidated Joint Ventures Cindat Hersha Owner JV, LLC 31.2% Hampton Inn Herald Square, New York, NY Cindat Hersha Lessee JV, LLC Hampton Inn Chelsea, New York, NY Cindat Hersha Lessee JV, LLC Hampton Inn Times Square, New York, NY Cindat Hersha Lessee JV, LLC Holiday Inn Express Times Square, New York, NY Cindat Hersha Lessee JV, LLC Candlewood Suites Times Square, New York, NY Cindat Hersha Lessee JV, LLC Holiday Inn Wall Street, New York, NY Cindat Hersha Lessee JV, LLC Holiday Inn Express Water Street, New York, NY Cindat Hersha Lessee JV, LLC SB Partners, LLC 50% Holiday Inn Express South Boston, MA South Bay Sandeep, LLC Hiren Boston, LLC 50% Courtyard South Boston, MA South Bay Boston, LLC SB Partners Three, LLC 50% Home2 Suites South Boston, MA SB Partners Three Lessee, LLC Subsequent to December 31, 2020, the mezzanine lender to Cindat Hersha Owner JV, LLC foreclosed and took ownership of properties owned by the joint venture. See “Note 2 – Investment in Unconsolidated Joint Venture.” NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) The properties are managed by eligible independent management companies, including Hersha Hospitality Management, LP (“HHMLP”). HHMLP is owned in part by certain of our trustees and executive officers and other unaffiliated third party investors as defined by the Internal Revenue Code. Principles of Consolidation and Presentation The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") and include all of our accounts as well as accounts of the Partnership, subsidiary partnerships and our wholly owned TRS Lessee. All significant inter-company amounts have been eliminated. Consolidated properties are either wholly owned or owned less than 100% by the Partnership and are controlled by the Company as general partner of the Partnership. Properties owned in joint ventures are also evaluated for consolidation. Entities are consolidated if the determination is made that we are the primary beneficiary in a variable interest entity ("VIE") or we maintain control of the asset through our voting interest or other rights in the operation of the entity. To determine if we are the primary beneficiary of a VIE, we evaluate whether we have a controlling financial interest in that VIE. An enterprise is deemed to have a controlling financial interest if it has i) the power to direct the activities of a variable interest entity that most significantly impacts the entity’s economic performance, and ii) the obligation to absorb losses of the VIE that could be significant to the VIE or the rights to receive benefits from the VIE that could be significant to the VIE. Control can also be demonstrated by the ability of a member to manage day-to-day operations, refinance debt and sell the assets of the partnerships without the consent of the other member and the inability of the members to replace the managing member. Based on our examination, the following entities were determined to be VIE’s: HHLP; Cindat Hersha Lessee JV, LLC; South Bay Boston, LLC; SB Partners Three Lessee, LLC; Hersha Holding RC Owner, LLC; Hersha Statutory Trust I; and Hersha Statutory Trust II. The Company’s most significant asset is its investment in HHLP, and consequently, substantially all of the Company’s assets and liabilities represent those assets and liabilities of HHLP. Cindat Hersha Lessee JV, LLC is a VIE that leases hotel property. The entity is consolidated by the lessors, the primary beneficiary. Our maximum exposure to losses due to our investment in Cindat Hersha Owner JV, LLC is limited to our investment in the joint venture which is $0 as of December 31, 2020. South Bay Boston, LLC and SB Partners Three Lessee, LLC, are consolidated by the respective lessors, the primary beneficiaries. Hersha Holding RC Owner, LLC is the owner entity of the Ritz Carlton Coconut Grove and is a VIE. HHLP is considered the primary beneficiary of the VIE and consolidates the joint venture with the minority owner interest presented as part of noncontrolling interest within the Consolidated Balance Sheets as of December 31, 2020 and December 31, 2019. Hersha Statutory Trust I and Hersha Statutory Trust II are VIEs but HHLP is not the primary beneficiary in these entities. Accordingly, the accounts of Hersha Statutory Trust I and Hersha Statutory Trust II are not consolidated. Segment Reporting We allocate resources and assess operating performance based on individual hotels and consider each one of our hotels to be an operating segment. No operating segment, individually, meets the threshold for a reportable segment as defined within ASC Topic 280 – Segment Reporting, nor do they fully satisfy the requisite aggregation criteria therein. As a result, the Company does not present separate operating segment information within the Notes to the Consolidated Financial Statements. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Although we believe the assumptions and estimates we made are reasonable and appropriate, as discussed in the applicable sections throughout these Consolidated Financial Statements, different assumptions and estimates could materially impact our reported results. NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Investment in Hotel Properties The Company records the value of hotel properties acquired based on the fair value of the acquired real estate, furniture, fixtures and equipment, and intangible assets and the fair value of liabilities assumed, including debt. The fair value allocations were determined using Level 3 inputs, which are typically unobservable and are based on our own assumptions, as there is little, if any, related market activity. The Company’s investments in hotel properties are carried at cost and are depreciated using the straight-line method over the following estimated useful lives: Building and Improvements 7 to 40 years Furniture, Fixtures and Equipment 2 to 7 years Based on the occurrence of certain events or changes in circumstances, we review the recoverability of the property's carrying value. Such events or changes in circumstances include the following: • a significant decrease in the market price of a long-lived asset; • a significant adverse change in the extent or manner in which a long-lived asset is being used or in its physical condition; • a significant adverse change in legal factors or in the business climate that could affect the value of a long-lived asset, including an adverse action or assessment by a regulator; • an accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of a long-lived asset; • a current-period operating or cash flow loss combined with a history of operating or cash flow losses or a projection or forecast that demonstrates continuing losses associated with the use of a long-lived asset; and • a current expectation that, it is more likely that not that, a long-lived asset will be sold or otherwise disposed of significantly before the end of its previously estimated useful life. We review our portfolio on an ongoing basis to evaluate the existence of any of the aforementioned events or changes in circumstances that would require us to test for recoverability. In general, our review of recoverability is based on an estimate of the future undiscounted cash flows, excluding interest charges, expected to result from the property's use and eventual disposition. These estimates consider factors such as expected future operating income, market and other applicable trends and residual value expected, as well as the effects of hotel demand, competition and other factors. Other assumptions used in the review of recoverability include the holding period and expected terminal capitalization rate. If impairment exists due to the inability to recover the carrying value of a property, an impairment loss is recorded to the extent that the carrying value exceeds the estimated fair value of the property. We are required to make subjective assessments as to whether there are impairments in the values of our investments in hotel properties. We consider a hotel to be held for sale when management and our independent trustees commit to a plan to sell the property, the property is available for sale, management engages in an active program to locate a buyer for the property and it is probable the sale will be completed within a year of the initiation of the plan to sell. ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business offers guidance when evaluating whether a transaction will be accounted for as an acquisition of an asset or a business. We expect most of our hotel property acquisitions to qualify as asset acquisitions under the standard which requires capitalization of acquisition costs to the underlying assets. Acquisition-related cost, such as due diligence, legal and accounting fees, are not capitalized or applied in determining the fair value of the above acquired assets in the acquisition of a business. NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Investment in Unconsolidated Joint Ventures If it is determined that we do not have a controlling interest in a joint venture, either through our financial interest in a VIE or our voting interest in a voting interest entity, the equity method of accounting is used. Under this method, the investment, originally recorded at cost, is adjusted to recognize our share of net earnings or losses of the affiliates as they occur rather than as dividends or other distributions are received, limited to the extent of our investment in, advances to and commitments for the investee. Pursuant to our joint venture agreements, allocations of profits and losses of some of our investments in unconsolidated joint ventures may be allocated disproportionately as compared to nominal ownership percentages due to specified preferred return rate thresholds. See Note 3 – Investment in Unconsolidated Joint Ventures for a more detailed explanation of the methodology used in determining the allocation of profits and losses within our joint ventures. The Company periodically reviews the carrying value of its investment in unconsolidated joint ventures to determine if circumstances indicate impairment to the carrying value of the investment that is other than temporary. When an impairment indicator is present, we will estimate the fair value of the investment. Our estimate of fair value takes into consideration factors such as expected future operating income, trends and prospects, as well as the effects of demand, competition and other factors. This determination requires significant estimates by management, including the expected cash flows to be generated by the assets owned and operated by the joint venture. To the extent impairment has occurred and the impairment is considered other than temporary, the loss will be measured as the excess of the carrying amount over the fair value of our investment in the unconsolidated joint venture. Cash and Cash Equivalents Cash and cash equivalents represent cash on hand and in banks plus short-term investments with an initial maturity of three months or less when purchased. NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Escrow Deposits Escrow deposits include reserves for debt service, real estate taxes, and insurance and reserves for furniture, fixtures, and equipment replacements, as required by certain mortgage debt agreement restrictions and provisions. Hotel Accounts Receivable Hotel accounts receivable consists primarily of meeting and banquet room rental and hotel guest receivables. The Company generally does not require collateral. Ongoing credit evaluations are performed and potential losses from uncollectible accounts are written off against revenue when they are estimated to be uncollectible. Deferred Financing Costs Deferred financing costs are recorded at cost and amortized over the terms of the related indebtedness using the effective interest method. Deferred financing costs associated with our line of credit are recorded within the Other Assets line item in our Consolidated Balance Sheets. Deferred financing costs associated with our term loans, mortgage debt, or subordinated notes are recorded as contra-liabilities within each respective line item on our Consolidated Balance Sheets. All amortization of deferred financing costs is presented with in the Interest Expense line on our Consolidated Statements of Operations. Due from/to Related Parties Due from/to Related Parties represents current receivables and payables resulting from transactions related to hotel management and project management with affiliated entities. Due from related parties results primarily from advances of shared costs incurred. Due to affiliates results primarily from hotel management and project management fees incurred. Both due to and due from related parties are generally settled within a period not to exceed one year. Intangible Assets and Liabilities Intangible assets consist of leasehold intangibles for in-place leases at the time of hotel acquisition and deferred franchise fees. The leasehold intangibles are amortized over the remaining lease term. Deferred franchise fees are amortized using the straight-line method over the life of the franchise agreement. Intangible liabilities consist of leasehold intangibles for in-place leases at the time of hotel acquisition. The leasehold intangibles are amortized over the remaining lease term. Intangible liabilities are included in the accounts payable, accrued expenses and other liabilities on the Company’s consolidated balance sheets. Development Project Capitalization We have opportunistically engaged in the development and re-development of hotel assets. We capitalize expenditures related to hotel development projects and renovations, including indirect costs such as interest expense, real estate taxes and utilities related to hotel development projects and renovations. Noncontrolling Interest Noncontrolling interest in the Partnership represents the limited partner’s proportionate share of the equity of the Partnership. Income (loss) is allocated to noncontrolling interest in accordance with the weighted average percentage ownership of the Partnership during the period. At the end of each reporting period the appropriate adjustments to the income (loss) are made based upon the weighted average percentage ownership of the Partnership during the period. Our ownership interest in the Partnership as of December 31, 2020, 2019 and 2018 was 87.8%, 90.0%, and 91.3%, respectively. We define a noncontrolling interest as the portion of equity in a subsidiary not attributable, directly or indirectly, to a parent. Such noncontrolling interests are reported on the consolidated balance sheets within equity, but separately from the shareholders’ equity. Revenues, expenses and net income or loss attributable to both the Company and noncontrolling interests are reported on the consolidated statements of operations. NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) In accordance with US GAAP, we classify securities that are redeemable for cash or other assets at the option of the holder, or not solely within the control of the issuer, outside of permanent equity in the consolidated balance sheet. The Company makes this determination based on terms in applicable agreements, specifically in relation to redemption provisions. Additionally, with respect to noncontrolling interests for which the Company has a choice to settle the contract by delivery of its own shares, the Company considers the guidance in US GAAP to evaluate whether the Company controls the actions or events necessary to issue the maximum number of common shares that could be required to be delivered at the time of settlement of the contract. We classify the noncontrolling interests of our common units of limited partnership interest in HHLP ("Common Units"), and Long Term Incentive Plan Units ("LTIP Units") as equity. LTIP Units are a separate class of limited partnership interest in the Operating Partnership that are convertible into Common Units under certain circumstances. The noncontrolling interest of Common Units and LTIP Units totaled $49,246 as of December 31, 2020 and $64,144 as of December 31, 2019. As of December 31, 2020, there were 5,392,808 Common Units and LTIP Units collectively outstanding with a fair market value of $42,549, based on the price per share of our common shares on the NYSE on such date. In accordance with the partnership agreement of the Partnership, holders of these units may redeem them for cash unless we, in our sole and absolute discretion, elect to issue common shares on a one-for-one basis in lieu of paying cash. On April 2, 2018, we entered into a joint venture with the party from which we acquired the Ritz-Carlton Coconut Grove, FL. By exercising an option provided to the seller in connection with our purchase of the property in 2017, our joint venture partner will have a noncontrolling equity interest of 15% in the property. Hersha Holding RC Owner, LLC, the owner entity of the Ritz-Carlton Coconut Grove joint venture ("Ritz Coconut Grove"), will distribute income based on cash available for distribution which will be distributed as follows: (1) to us until we receive a cumulative return on our contributed senior common equity interest, currently at 8%, and (2) then to the owner of the noncontrolling interest until they receive a cumulative return on their contributed junior common equity interest, currently at 8%, and (3) then 75% to us and 25% to the owner of the noncontrolling interest until we both receive a cumulative return on our contributed senior common equity interest, currently at 12%, and (4) finally, any remaining operating profit shall be distributed 70% to us and 30% to the owner of the noncontrolling interest. Additionally, the noncontrolling interest in the Ritz Coconut Grove has the right to put their ownership interest to us for cash consideration at any time during the life of the venture. The balance sheet and financial results of the Ritz Coconut Grove are included in our consolidated financial statements and book value of the noncontrolling interest in the Ritz Coconut Grove is classified as temporary equity within our Consolidated Balance Sheet. The noncontrolling interest in the Ritz Coconut Grove was initially measured at fair value upon formation of the joint venture and will be subsequently measured at the greater of historical cost or the put option redemption value. For the years ended December 31, 2020, 2019 and 2018, based on the income allocation methodology described above, the noncontrolling interest in this joint venture was allocated losses of $21, $300 and $3,417, respectively, and is recorded as part of the (Income) Loss Allocated to Noncontrolling Interests line item within the Consolidated Statements of Operations. We reclassified $(3,196) and $488 from Additional Paid in Capital to Noncontrolling Joint Venture Interest to recognize interest at the put option redemption value of $0 and $3,196, at December 31, 2020 and December 31, 2019, respectively. Net income or loss attributed to Common Units and LTIP Units, as well as the net income or loss related to the noncontrolling interests of our consolidated variable interest entity, is included in net income or loss in the consolidated statements of operations. Net income or loss attributed to the Common Units, LTIP Units, and the noncontrolling interests of our consolidated joint ventures is excluded from net income or loss applicable to common shareholders in the consolidated statements of operations. NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Shareholders’ Equity As of December 31, 2020, we have 14,703,214 Cumulative Redeemable Preferred Shares outstanding consisting of three separate Series issuances. Terms of the Series C, Series D and Series E Preferred Shares outstanding at December 31, 2020 and 2019 are summarized as follows: Dividend Per Share Shares Outstanding Year Ended December 31, (1) Series December 31, 2020 December 31, 2019 Aggregate Liquidation Preference Distribution Rate 2020 2019 Series C 3,000,000 3,000,000 $ 75,000 6.875 % $ — $ 1.7188 Series D 7,701,700 7,701,700 $ 192,543 6.500 % $ — 1.6250 Series E 4,001,514 4,001,514 $ 100,038 6.500 % $ — 1.6250 Total 14,703,214 14,703,214 (1) As a result of the turmoil in the financial markets resulting from the spread of the novel coronavirus and the global COVID-19 pandemic, on March 19, 2020, in order to preserve liquidity, we revoked our previously announced first quarter 2020 quarterly cash dividends on our common shares, 6.875% Series C Cumulative Redeemable Preferred Shares, 6.50% Series D Cumulative Redeemable Preferred Shares and 6.50% Series E Cumulative Redeemable Preferred Shares. The payment by us of dividends, with limited exceptions, has been prohibited under the terms of the amendments to the Credit Agreements entered into on April 2, 2020. Unpaid dividends on our preferred shares shall accrue without interest. No cash dividends may be paid on our common shares unless all accrued but unpaid dividends on our preferred shares have been (or contemporaneously are) declared and paid, or declared and a sum sufficient for such payment has been set apart for payment for all past dividend periods. Subsequent to December 31, 2020, we entered into amendments to the Credit Agreements which allowed for the payment of the total arrearage of unpaid cash dividends due on each of our 6.875% Series C Cumulative Redeemable Preferred Shares, 6.50% Series D Cumulative Redeemable Preferred Shares and 6.50% Series E Cumulative Redeemable Preferred Shares and allows us, subject to the discretion and approval of our Board of Trustees, to declare regular quarterly dividends on our preferred shares on an ongoing basis. The total arrearage as of December 31, 2020 of approximately $24,176 was paid on March 26, 2021. In December 2018, our Board of Trustees authorized a new share repurchase program for up to $50,000 of common shares which commenced on January 1, 2019 and expired on December 31, 2019. For the year ended December 31, 2019, we repurchased 933,436 common shares for an aggregate purchase price of $14,194. Upon repurchase by the Company, these common shares ceased to be outstanding and became authorized but unissued common shares. There was no share repurchase program for the year-ended December 31, 2020. Stock Based Compensation We measure the cost of employee service received in exchange for an award of equity instruments based on the grant-date fair value of the award. The compensation cost is amortized on a straight line basis over the period during which an employee is required to provide service in exchange for the award. The compensation cost related to performance awards that are contingent upon market-based criteria being met is recorded at the fair value of the award on the date of the grant and amortized over the performance period. NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Derivatives and Hedging The Company’s objective in using derivatives is to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps and interest rate caps as part of its cash flow hedging strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts in exchange for fixed-rate payments over the life of the agreements without exchange of the underlying principal amount. Interest rate caps designated as cash flow hedges limit the Company’s exposure to increased cash payments due to increases in variable interest rates. Liquidity and Management's Plan Due to the COVID-19 pandemic and the effects of travel restrictions both globally and in the United States, the hospitality industry has experienced drastic drops in demand. The global impact of the pandemic has been rapidly evolving and, in the United States, certain states and cities, including most of the states and cities where we own properties, have reacted by instituting various restrictive measures such as quarantines, restrictions on travel, school closings, "stay at home" rules and restrictions on types of business that may continue to operate. During the first quarter of 2020 as a result of the impact of the COVID-19 pandemic, we had temporarily closed 21 of our 48 hotels while our remaining hotels operated in a significantly reduced capacity. During the second quarter of 2020 we reopened 5 hotels, during the third quarter of 2020 we reopened 8 hotels, and during the fourth quarter of 2020 we reopened 2 hotels resulting in 6 hotels remaining closed as of December, 2020. We believe the ongoing effects of the COVID-19 pandemic on our operations have had, and will continue to have a material negative impact on our financial results and liquidity, and such negative impact may continue beyond the containment of the pandemic. In February of 2021, we entered into an unsecured notes facility that provided an initial $150,000 and access to an incremental $50,000, which can be drawn through September 30, 2021. Proceeds from the initial $150,000 provided by this facility, along with a portion of the proceeds from asset sales, were used to repay amounts outstanding under our senior secured credit facility and our two secured term loans and allowed us to negotiate amendments to this senior facility. The amendments to the senior secured credit facility and two secured term loans eliminate term loan maturities until August of 2022, waive all financial covenants through March 31, 2022, establish accommodative covenant testing methodology through December 31, 2022, enable the Company to pay down the accrual of the Company's preferred dividends and the ongoing preferred dividend accrual to be kept current, and provide additional liquidity at the Company's discretion. We cannot assure you that our assumptions used to estimate our liquidity requirements will be correct because the lodging industry has not previously experienced such an abrupt and drastic reduction in hotel demand, and as a consequence, our ability to be predictive is uncertain. In addition, the magnitude, duration, and speed of the pandemic is uncertain and we cannot estimate when travel demand will recover. NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Revenue Recognition We recognize revenue for all consolidated hotels as hotel operating revenue when earned. Revenues are recorded net of any sales or occupancy tax collected from our guests. We participate in frequent guest programs sponsored by the brand owners of our hotels and we expense the charges associated with those programs, as incurred. Hotel operating revenues are disaggregated on the face of the consolidated statement of operations into the categories of rooms revenue, food and beverage revenue, and other to demonstrate how economic factors affect the nature, amount, timing, and uncertainty of revenue and cash flows. Room revenue is generated through contracts with customers whereby the customers agree to pay a daily rate for right to use a hotel room. The customer is provided the room and revenue is recognized daily at the contract rate. Payment from the customer is generally secured at the end of the contract upon check-out by the customer from our hotel. The Company records advanced deposits when a customer or group of customers provides a deposit for a future stay at our hotels. Advanced deposits for room revenue are included in the balance of Accounts Payable, Accrued Expenses and Other Liabilities on the consolidated balance sheet. Advanced deposits are recognized as revenue at the time of the guest's stay. The Company notes no significant judgements regarding the recognition of room revenue. Food and beverage revenue is generated through contracts with customers whereby the customer agrees to pay a contract rate for restaurant dining services or banquet services. The Company's contract performance obligations are fulfilled at the time that the meal is provided to the customer or when the banquet facilities and related dining amenities are provided to the customer. The Company recognizes food and beverage revenue upon the fulfillment of the contract with the customer. The Company records contract liabilities in the form of advanced deposits when a customer or group of customers provides a deposit for a future banquet event at our hotels. Advanced deposits for food and beverage revenue are included in the balance of Accounts Payable, Accrued Expenses and Other Liabilities on the consolidated balance sheet. Advanced deposits for banquet services are recognized as revenue following the completion of the banquet services. The Company notes no significant judgements regarding the recognition of food and beverage revenue. Other revenues consist primarily of fees earned for asset management services provided to hotels we own through unconsolidated joint ventures. Fees are earned as a percentage of hotel revenue and are recorded in the period earned to the extent of the noncontrolling interest ownership. NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Income Taxes The Company has elected to be taxed as a REIT under applicable provisions of the Internal Revenue Code of 1986, as amended, or the Code, and intends to continue to qualify as a REIT. In general, under such provisions, a trust which has made the required election and, in the taxable year, meets certain requirements and distributes to its shareholders at least 90% of its REIT t |
Investment In Hotel Properties
Investment In Hotel Properties | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Investment In Hotel Properties | INVESTMENT IN HOTEL PROPERTIES Investment in hotel properties consists of the following at December 31, 2020 and December 31, 2019: December 31, 2020 December 31, 2019 Land $ 488,463 $ 518,243 Buildings and Improvements 1,611,144 1,710,621 Furniture, Fixtures and Equipment 281,440 294,527 Construction in Progress 987 10,202 2,382,034 2,533,593 Less Accumulated Depreciation (597,196) (557,620) Total Investment in Hotel Properties $ 1,784,838 $ 1,975,973 Depreciation expense on hotel properties was $96,216, $95,673 and $88,598 for the years ended December 31, 2020, 2019 and 2018, respectively. During the years ended December 31, 2020 and December 31, 2019, we acquired no hotel properties. Property Damage from Natural Disaster During September 2017, all six of our hotels located in South Florida incurred property damage and an interruption of business operations as a result of Hurricane Irma. Two of our hotels, the Courtyard Cadillac Miami and the Parrot Key Hotel & Resort, incurred significant physical damage and were closed due to the disaster. The Courtyard Cadillac Miami opened for business in the third quarter of 2018, and the Parrot Key Hotel & Resort opened for business in the fourth quarter of 2018, respectively. The remaining four properties had resumed normal business activities as of December 31, 2018. During the year ended December 31, 2018, we recorded a net gain in excess of estimated insurance recoveries of $12,649. During the year ended December 31, 2020, we resolved this remaining open claim and recorded a net gain in excess of estimated insurance recoveries of $8,147. NOTE 2 – INVESTMENT IN HOTEL PROPERTIES (CONTINUED) Hotel Dispositions During the year ended December 31, 2019, we had no hotel dispositions. During the years ended December 31, 2020, and 2018, we had the following hotel dispositions: Hotel Acquisition Disposition Consideration Gain (Loss) on Sheraton Wilmington South, DE 2010-12-21 2020-12-01 $ 19,500 $ 1,158 2020 Total $ 1,158 Hyatt House Gaithersburg, MD 2006-12-01 2018-02-16 $ 19,000 $ 2,441 Hampton Inn Pearl Street, NY 2014-06-01 2018-03-06 32,400 926 Residence Inn Tysons Corner, VA 2006-02-01 2018-10-31 15,700 781 2018 Total $ 4,148 Assets Held For Sale We have classified three assets as held for sale as of December 31, 2020. The sales of the Residence Inn Coconut Grove and Courtyard San Diego hotels closed subsequent to December 31, 2020. During the second quarter of 2020, the Company amended the purchase and sale agreement with the buyer of the Duane Street Hotel to reduce the purchase price by $2,000. As a result of the reduced sales price and after consideration of selling costs to the Company, management determined that the carrying value of the hotel exceeded the anticipated net proceeds from sale, resulting in a $1,069 impairment charge recorded during the second quarter of 2020. The sale of the Duane Street Hotel is expected to close in the first half of 2021. The purchase and sale agreement for the Blue Moon Hotel has expired and we no longer believe sale of the hotel is probable. For this reason, the Blue Moon Hotel was removed from held for sale assets as of December 31, 2020. The table below shows the balances for the properties that were classified as assets held for sale as of December 31, 2020: December 31, 2020 Land $ 28,015 Buildings and Improvements 93,314 Furniture, Fixtures and Equipment 15,469 136,798 Less Accumulated Depreciation (40,578) Assets Held for Sale $ 96,220 NOTE 2 – INVESTMENT IN HOTEL PROPERTIES (CONTINUED) Subsequent Events On January 12, 2021, we entered into a purchase and sale agreement, as amended, to sell the Capitol Hill Hotel to an unrelated third party for a sales price of $51,000. Also on January 12, 2021, we entered into a purchase and sale agreement, as amended, to sell the Holiday Inn Express Cambridge Hotel to the same unrelated third party for a sales price of $32,000. Both transactions closed in the first quarter of 2021 and did not meet the criteria to classify as held for sale as of December 31, 2020. |
Investment In Unconsolidated Jo
Investment In Unconsolidated Joint Ventures | 12 Months Ended |
Dec. 31, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment In Unconsolidated Joint Ventures | INVESTMENT IN UNCONSOLIDATED JOINT VENTURES As of December 31, 2020 and December 31, 2019 our investment in unconsolidated joint ventures consisted of the following: Joint Venture Hotel Properties Percent Owned December 31, 2020 December 31, 2019 Cindat Hersha Owner JV, LLC Hilton and IHG branded hotels in NYC 31 % $ — $ — Hiren Boston, LLC Courtyard by Marriott, South Boston, MA 50 % 219 1,434 SB Partners, LLC Holiday Inn Express, South Boston, MA 50 % — — SB Partners Three, LLC Home2 Suites, South Boston, MA 50 % 6,414 7,012 $ 6,633 $ 8,446 On February 7, 2021, the mezzanine lender to Cindat Hersha Owner JV, LLC foreclosed and took ownership of properties owned by the joint venture. As a result, upon dissolution of the venture, we will no longer maintain an interest in this venture. On January 3, 2020, we entered into an agreement for our joint venture partner to purchase our membership interests in Hiren Boston, LLC and SB Partners, LLC. Net proceeds from the sale of our interests are anticipated to be approximately $24,000 and this transaction is expected to close during the second quarter of 2021. Income/Loss Allocation The Cindat Hersha Owner JV, LLC cash available for distribution will be distributed to (1) Cindat until they receive a return on their contributed $143,650 senior common equity interest, currently at 8%, and (2) then to us until we receive an 8% return on our contributed $64,357 junior common equity interest. Any cash available for distribution remaining will be split 31% to us and 69% to Cindat. Cindat’s senior common equity return is reduced by 0.5% annually for 4 years following the closing until it is set at a rate of 8% for the remainder of the life of the joint venture. As of December 31, 2020 and 2019, based on the income allocation methodology described above, the Company has absorbed cumulative losses equal to our accounting basis in the joint venture resulting in a $0 investment balance in the table above, however, we currently maintain a positive equity balance within the venture. This difference is due to difference in our basis inside the venture versus our basis outside of the venture, which is explained later in this note. For SB Partners, LLC, Hiren Boston, LLC, and SB Partners Three, LLC, income or loss is allocated to us and our joint venture partners consistent with the allocation of cash distributions in accordance with the joint venture agreements. This results in an income allocation consistent with our percentage of ownership interests. Any difference between the carrying amount of any of our investments noted above and the underlying equity in net assets is amortized over the expected useful lives of the properties and other intangible assets. NOTE 3 – INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (CONTINUED) Income (loss) recognized during the years ended December 31, 2020, 2019 and 2018, for our investments in unconsolidated joint ventures is as follows: Year Ended December 31, 2020 2019 2018 Cindat Hersha Owner JV, LLC $ — $ — $ — Hiren Boston, LLC (1,741) 155 866 SB Partners, LLC (600) 626 218 SB Partners Three, LLC (597) (90) — (Loss) Income from Unconsolidated Joint Venture Investments $ (2,938) $ 691 $ 1,084 The following tables set forth the total assets, liabilities, equity and components of net income or loss, including the Company’s share, related to the unconsolidated joint ventures discussed above as of December 31, 2020 and December 31, 2019 and for the years ended December 31, 2020, 2019 and 2018. Balance Sheets December 31, 2020 December 31, 2019 Assets Investment in Hotel Properties, Net $ 581,452 $ 579,287 Other Assets 32,048 33,891 Total Assets $ 613,500 $ 613,178 Liabilities and Equity Mortgages and Notes Payable $ 452,284 $ 430,282 Other Liabilities 42,197 19,185 Equity: Hersha Hospitality Trust 5,699 9,588 Joint Venture Partners 113,452 154,998 Accumulated Other Comprehensive Loss (132) (875) Total Equity 119,019 163,711 Total Liabilities and Equity $ 613,500 $ 613,178 Statements of Operations Year Ended December 31, 2020 2019 2018 Room Revenue $ 25,011 $ 94,384 $ 98,123 Other Revenue 1,020 2,408 2,350 Operating Expenses (18,695) (46,175) (46,319) Lease Expense (770) (693) (658) Property Taxes and Insurance (12,906) (12,477) (11,882) General and Administrative (2,638) (5,783) (5,489) Depreciation and Amortization (16,200) (14,947) (13,403) Interest Expense (23,908) (28,072) (26,289) Loss on Debt Extinguishment — — (7,270) Net Loss $ (49,086) $ (11,355) $ (10,837) NOTE 3 – INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (CONTINUED) The following table is a reconciliation of our share in the unconsolidated joint ventures’ equity to our investment in the unconsolidated joint ventures as presented on our balance sheets as of December 31, 2020 and December 31, 2019. December 31, 2020 December 31, 2019 Our share of equity recorded on the joint ventures' financial statements $ 5,699 $ 9,588 Adjustment to reconcile our share of equity recorded on the joint ventures' financial statements to our investment in unconsolidated joint ventures (1) 934 (1,142) Investment in Unconsolidated Joint Ventures $ 6,633 $ 8,446 (1) Adjustment to reconcile our share of equity recorded on the joint ventures' financial statements to our investment in unconsolidated joint ventures consists of the following: • the difference between our basis in the investment in joint ventures and the equity recorded on the joint ventures' financial statements; • accumulated amortization of our equity in joint ventures that reflects the difference in our portion of the fair value of joint ventures' assets on the date of our investment when compared to the carrying value of the assets recorded on the joint ventures’ financial statements (this excess or deficit investment is amortized over the life of the properties, and the amortization is included in Income (Loss) from Unconsolidated Joint Venture Investments on our consolidated statement of operations); and |
Other Assets And Deposits On Ho
Other Assets And Deposits On Hotel Acquisitions | 12 Months Ended |
Dec. 31, 2020 | |
Other Assets [Abstract] | |
Other Assets And Deposits On Hotel Acquisitions | OTHER ASSETS AND DEPOSITS ON HOTEL ACQUISITIONS Other Assets Other Assets consisted of the following at December 31, 2020 and December 31, 2019: December 31, 2020 December 31, 2019 Derivative Asset $ — $ 2,514 Deferred Financing Costs 2,395 1,330 Prepaid Expenses 5,692 11,279 Investment in Statutory Trusts 1,548 1,548 Investment in Non-Hotel Property and Inventories 2,443 2,987 Deposits with Unaffiliated Third Parties 2,561 2,577 Deferred Tax Asset, Net of Valuation Allowance of $23,591 and $497, respectively — 11,390 Property Insurance Receivable — 1,788 Other 855 2,764 $ 15,494 $ 38,177 Derivative Asset - This category represents the Company’s gross asset fair value of interest rate swaps and interest rate caps. Any swaps and caps resulting in a liability to the Company are accounted for separately within Other Liabilities on the Balance Sheet. Deferred Financing Costs - This category represents financing costs paid by the Company to establish our Line of Credit. These costs have been capitalized and will amortize to interest expense over the life of the Line of Credit. Prepaid Expenses - Prepaid expenses include amounts paid for property tax, insurance and other expenditures that will be expensed in the next twelve months. Investment in Statutory Trusts - We have an investment in the common stock of Hersha Statutory Trust I and Hersha Statutory Trust II. Our investment is accounted for under the equity method. Investment in Non-Hotel Property and Inventories - This category represents the costs paid and capitalized by the Company for items such as office leasehold improvements, furniture and equipment, and property inventories. Deposits with Unaffiliated Third Parties - These deposits represent deposits made by the Company with unaffiliated third parties for items such as lease security deposits, utility deposits, and deposits with unaffiliated third party management companies. Deferred Tax Asset - We have approximately $0 of net deferred tax assets as of December 31, 2020. We have considered various factors, including future reversals of existing taxable temporary differences, future projected taxable income and tax planning strategies in determining a valuation allowance for our deferred tax assets, and we believe that it is more likely than not that we will not be able to realize the net deferred tax assets in the future, and a valuation allowance for the entire deferred tax asset has been recorded. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | DEBT Mortgages Mortgages payable at December 31, 2020 and December 31, 2019 consisted of the following: December 31, 2020 December 31, 2019 Mortgage Indebtedness $ 332,264 $ 333,948 Net Unamortized Premium 354 821 Net Unamortized Deferred Financing Costs (1,770) (2,489) Mortgages Payable $ 330,848 $ 332,280 Net Unamortized Deferred Financing Costs associated with entering into mortgage indebtedness are deferred and amortized over the life of the mortgages. Net Unamortized Premiums are also amortized over the remaining life of the loans. Mortgage indebtedness balances are subject to fixed and variable interest rates, which ranged from 2.14% to 6.30% as of December 31, 2020. Our mortgage indebtedness contains various financial and non-financial covenants customarily found in secured, non-recourse financing arrangements. Our mortgage loans payable typically require that specified debt service coverage ratios be maintained with respect to the financed properties before we can exercise certain rights under the loan agreements relating to such properties. If the specified criteria are not satisfied, the lender may be able to escrow cash flow generated by the property securing the applicable mortgage loan. At December 31, 2020, we failed our debt service coverage ratio ("DSCR") requirement related to four of our mortgage borrowings. Three of these DSCR failures trigger a cash management provision within their respective mortgages, which results in our respective lenders sweeping cash receipts from the properties into a lockbox to service debt payments. The remaining mortgage for which we failed the DSCR requirement has resulted in an event of default on the mortgage. Subsequent to December 31, 2020, we entered into a purchase and sale agreement for the property securing this mortgage and closed on the sale in the first quarter of 2021. This mortgage was repaid in full with proceeds from the sale of the property. As of December 31, 2020, the maturity dates for the outstanding mortgage loans ranged from August 2021 to September 2025. NOTE 5 – DEBT (CONTINUED) Credit Facilities We maintain three secured credit agreements which aggregate to $934,506 with Citigroup Global Markets Inc., Wells Fargo Bank, Inc. and various other lenders. One credit agreement ("Credit Agreement") provides for a senior secured credit facility of $452,158 (“Credit Facility”). The Credit Facility consists of a $250,000 senior secured revolving line of credit (“Line of Credit”), and a $202,158 senior secured term loan (“First Term Loan”). The Credit Facility expires on August 10, 2022, and, provided no event of default has occurred, we may request that the lenders renew the credit facility for an additional one- year We maintain another credit agreement which provides for a $292,983 senior secured loan agreement (“Second Term Loan”) and expires on September 10, 2024. A separate credit agreement provides for a $189,365 senior secured term loan agreement (“Third Term Loan” and collectively with the Credit Agreement and the Second Term Loan, the "Credit Agreements") and expires on August 2, 2021. On April 2, 2020, the Company signed amendments to the Credit Agreements, which, among other things, changed each borrowing facility under the agreements from unsecured to secured. Additionally, the Company received $100,000 in available funds on its Line of Credit. Since the amendment, the Company has drawn a total of $66,000 and repaid $2,947 through December 31, 2020. As of both December 31, 2020 and 2019, the Company had an outstanding balance on the term loans of $684,506 and $700,900, respectively. As of December 31, 2020 and 2019, the Company had an outstanding balance on the line of credit of $133,053 and $48,000. On February 17, 2021, the Company signed amendments to the Credit Agreements, which, among other things, provide for: • an extension of the maturity date of the Third Term Loan to August 10, 2022; • a limited waiver of financial covenants through March 31, 2022; and • the ability to borrow up to $174,729, inclusive of amounts already outstanding, under the Line of Credit, the proceeds of which may only be used to fund certain costs and expenses. Certain provisions within these amendments were contingent upon, among other things, the following conditions: • The Company must have liquid assets in an aggregate amount of at least $30,000; • The Company must raise at least $75,000 of net cash proceeds through the issuance of subordinated junior capital by March 31, 2021, with proceeds and all future proceeds of subordinated junior capital applied in accordance with defined prepayment waterfalls; • The Company shall raise at least $150,000 of net cash proceeds from asset sales on or prior to June 30, 2021, with net cash proceeds applied in accordance with certain mandatory prepayment waterfalls; and • Certain negative covenants and restrictions that are considered normal and customary. These conditions, some of which are non-recurring in nature, have been met. Certain conditions, such as minimum liquid assets in an aggregate amount of at least $30,000, and certain negative covenants and restrictions that are considered normal and customary, must be met on a recurring basis as outlined within the amendments. The amendments to the Credit Agreements make certain other amendments to financial covenants in place beginning in the second quarter of 2022: • a fixed charge coverage ratio of not less than 1.20 to 1.00 (was 1.50 to 1.00); • a maximum leverage ratio of not more than 65% (was 60%); and • a new financial covenant that requires the borrowing base leverage ratio to not exceed 60% at any time. The amount that we can borrow at any given time under our Line of Credit, and the First, Second and Third Term Loan (each a “Term Loan” and together the “Term Loans”) is governed by certain operating metrics of designated unencumbered hotel properties known as borrowing base assets. As of December 31, 2020, the following hotel properties were borrowing base assets: - Courtyard by Marriott Brookline, Brookline, MA - Hampton Inn, Washington, DC - Holiday Inn Express Cambridge, Cambridge, MA - Ritz-Carlton Georgetown, Washington, DC - The Envoy Boston Seaport, Boston, MA - Hilton Garden Inn, M Street, Washington, DC - The Boxer, Boston, MA - Residence Inn Miami Coconut Grove, Coconut Grove, FL - Hampton Inn Seaport, Seaport, New York, NY - The Winter Haven Hotel Miami Beach, Miami, FL - The Duane Street Hotel, New York, NY - The Blue Moon Hotel Miami Beach, Miami, FL - Holiday Inn Express Chelsea, 29th Street, New York, NY - Cadillac Hotel & Beach Club, Miami, FL - Gate Hotel JFK Airport, New York, NY - The Parrot Key Hotel & Villas, Key West, FL - Hilton Garden Inn JFK Airport, New York, NY - TownePlace Suites, Sunnyvale, CA - NU Hotel, Brooklyn, New York, NY - The Ambrose Hotel, Santa Monica, CA - Hyatt House White Plains, White Plains, NY - Courtyard by Marriott Downtown San Diego, San Diego, CA - Hampton Inn Center City/ Convention Center, Philadelphia, PA - The Pan Pacific Hotel Seattle, Seattle, WA - The Rittenhouse, Philadelphia, PA - Mystic Marriott Hotel & Spa, Groton, CT - Philadelphia Westin, Philadelphia, PA NOTE 5 – DEBT (CONTINUED) The interest rate for borrowings under the Line of Credit and Term Loans are based on a pricing grid with a range of one month U.S. LIBOR plus a spread. The following table summarizes the balances outstanding and interest rate spread for each borrowing: Outstanding Balance Borrowing Spread December 31, 2020 December 31, 2019 Line of Credit 1.50% to 2.25% $ 133,053 $ 48,000 Secured Term Loan: First Term Loan 1.45% to 2.20% 202,158 207,000 Second Term Loan 1.35% to 2.00% 292,983 300,000 Third Term Loan 1.45% to 2.20% 189,365 193,900 Deferred Loan Costs $ (2,762) (3,717) Total Secured Term Loan $ 681,744 $ 697,183 Prior to the amendments noted above, the Credit Facility and the Term Loans included certain financial covenants and require that we maintain: (1) a minimum tangible net worth (calculated as total assets, plus accumulated depreciation, less total liabilities, intangibles and other defined adjustments) of $1,119,500, plus an amount equal to 75% of the net cash proceeds of all issuances and primary sales of equity interests of the parent guarantor or any of its subsidiaries consummated following the closing date; (2) annual distributions not to exceed 95% of adjusted funds from operations; and (3) certain financial ratios, including the following: • a fixed charge coverage ratio of not less than 1.50 to 1.00; • a maximum leverage ratio of not more than 60%; and • a maximum secured debt leverage ratio of 45%. The weighted average interest rate on our credit facilities was 4.07%, 4.11% and 3.83% for the years ended December 31, 2020, 2019 and 2018, respectively. Subordinated Notes Payable We have two junior subordinated notes payable in the aggregate amount of $51,548 to the Hersha Statutory Trusts pursuant to indenture agreements which will mature on July 30, 2035, but may be redeemed at our option, in whole or in part, prior to maturity in accordance with the provisions of the indenture agreements. The $25,774 notes issued to Hersha Statutory Trust I and Hersha Statutory Trust II, bear interest at a variable rate of LIBOR plus 3% per annum. This rate resets two NOTE 5 – DEBT (CONTINUED) Junior Notes Payable On February 17, 2021, the Company entered into a note purchase agreement (the “Purchase Agreement”) with several purchasers (the “Purchasers”). The Company agreed to issue and sell to the Purchasers an initial $150,000 aggregate principal amount (the “Initial Notes”) of the Company’s 9.50% Unsecured PIK Toggle Notes due 2026 (the “Notes”), and an incremental $50,000 aggregate principal amount of the Notes that can be drawn at the Company’s discretion, subject to certain conditions, in minimum installments of $25,000 on or prior to September 30, 2021. The Initial Notes were issued on February 23, 2021. The Notes will mature on February 23, 2026. The Notes bear interest at a rate of 9.50% per year, payable in arrears on June 30, September 30, December 31 and March 31 of each year, beginning on June 30, 2021. For any interest period ending on or prior to March 31, 2022, the Issuer, in its sole discretion may elect to pay interest (a) in cash at a rate per annum equal to 4.75% per annum, and (b) in kind at a rate per annum equal to 4.75% per annum (“PIK Interest”). Any PIK Interest will be paid by increasing the principal amount of the Notes at the end of the applicable interest period by the amount of such PIK Interest. The Notes may not be redeemed prior to February 23, 2022. The notes may be redeemed during the 12 month period beginning February 23, 2022 and the 12 month period beginning February 23, 2023, at a redemption price equal to 104% and 102% of the principal amount of the Notes being redeemed, respectively. After February 23, 2024, the notes may be redeemed at the principal amount. The Notes are subject to representations, warranties, covenants, terms and conditions customary for transactions of this type, including limitations on liens, incurrence of debt, investments, mergers and asset dispositions, covenants to preserve corporate existence and comply with laws and default provisions. The Company may only use the net proceeds from the issuance of the Notes in accordance with the mandatory prepayment waterfalls, which includes the repayment of outstanding borrowings under the Credit Agreement and use for certain other general corporate purposes. Aggregate annual principal payments for the Company’s credit facility and secured term loan, as amended, mortgages, and subordinated notes payable for the five years following December 31, 2020 and thereafter are as follows: Year Ending December 31, Amount 2021 $ 406,436 2022 248,599 2023 78,139 2024 378,817 2025 37,832 Thereafter 51,548 Net Unamortized Premium 354 $ 1,201,725 NOTE 5 – DEBT (CONTINUED) Interest Expense The table below shows the interest expense incurred by the Company during the twelve months ended December 31, 2020, 2019, and 2018: Years Ended December 31, 2020 2019 2018 Mortgage Loans Payable 12,277 15,804 15,050 Interest Rate Swap Contracts on Mortgages 1,895 (453) * (66) * Unsecured Notes Payable 2,037 2,837 2,712 Credit Facility and Term Loans 21,927 33,745 31,189 Interest Rate Swap Contracts on Credit Facility and Term Loans 11,018 (2,630) * (2,839) * Deferred Financing Costs Amortization 3,551 2,241 2,278 Capitalized Interest — (74) * (662) * Other 574 735 829 Total Interest Expense $ 53,279 $ 52,205 $ 48,491 *Negative amount indicates decrease to interest expense. New Debt/Refinance On December 4, 2019, we refinanced the outstanding mortgage debt with an original principal balance of $44,325 secured by the Hilton Garden Inn, 52nd Street, NY. The loan was due to mature on February 24, 2020, but will now mature on December 4, 2022. Contemporaneous with the mortgage refinance, we entered into an interest rate swap that matures December 4, 2022 that fixes the interest rate at 3.84% until maturity. On September 10, 2019, we refinanced our Second Term Loan. We maintained the $300,000 principal balance. The Second Term Loan was due to expire on August 10, 2020 but will now expire on September 10, 2024. The financial covenants on the new loan are substantially the same as the previous loan. Also during September 2019 we entered into new interest rate swap contracts for $700,900 of our Credit Facility and Term Loans. See "Note 8 - Fair Value Measurements and Derivative Instruments" for more information on the interest rate swaps. On July 25, 2019, we refinanced the outstanding mortgage debt with an original principal balance of $45,000 secured by the Hilton Garden Inn Tribeca, New York, NY. The loan was due to mature on November 13, 2019, but will now mature on July 25, 2024. Contemporaneous with the mortgage refinance, we entered into an interest rate swap that matures July 25, 2024 that fixes the interest rate at 4.02% until maturity. One June 7, 2019, we refinanced the outstanding mortgage debt with an original principal balance of $56,000 secured by the Hyatt Union Square, New York, NY. The loan was due to mature on June 9, 2019, but will now mature on June 7, 2023. Also on June 7, 2019, we entered into an interest rate swap that matures June 7, 2023. See "Note 8 - Fair Value Measurements and Derivative Instruments" for more information on the interest rate swap. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | LEASES In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which provides the principles for the recognition, measurement, presentation and disclosure of leases. The Company adopted the provisions of the update effective January 1, 2019. We elected the modified retrospective transition method upon adoption, which resulted in no cumulative-effect adjustment to the balance of opening retained earnings. As part of our adoption, we elected to utilize the package of practical expedients which allowed us to not reassess existing contracts for embedded leases and not reassess the classification of existing leases. As a result of our adoption, the Company recorded a lease liability and corresponding right of use asset of $55,515 at January 1, 2019 for leases where we are the lessee. Our most significant leases are land leases. We own five hotels within our consolidated portfolio of hotels where we do not own the land on which the hotels reside, rather we lease the land from an unrelated third-party lessor. All of our land leases are classified as operating leases and have initial terms, with extension options that range from May 2062 to October 2103. Based on the nature of these leases, the Company assumed that all extension options would be fully executed. For land leases that include variable payments, those include payments that are tied to an index such as the consumer price index or include rental payments based partially on the hotel revenues. Two additional office space leases are also factored into the lease liability and are classified as operating leases with terms ranging from January 2022 to December 2027. For office space leases that include variable payments, those include payments for the Company's proportionate share of the building's property taxes, insurance, and common area maintenance. The Company applied judgments related to the determination of the discount rates used to calculate the lease liability upon adoption at January 1, 2019. Since the discount rate implicit in the leases could not be readily determinable, we had to calculate our incremental borrowing rate as defined by ASC Topic 842. In order to calculate our incremental borrowing rate, the Company utilized judgments and estimates regarding the Company's market credit rating, comparable market bond yield curve, and adjustments to market yield curves to determine a securitized rate. We are also a lessor in certain office space and retail lease agreements related to our hotels and the adoption of this ASU did not have a material impact on our accounting for leases where we are the lessor. The adoption of this ASU did not impact revenue recognition policies for the Company. We record lease costs incurred from ground leases as expenses as presented within Hotel Ground Rent in the Consolidated Statements of Operations. Lease costs incurred from office leases are recorded to expense and presented within General and Administrative Expense in the Consolidated Statements of Operations. The components of lease costs for the year ended December 31, 2020 and 2019 were as follows: Year Ended December 31, 2020 Ground Lease Office Lease Total Operating lease costs $ 4,153 $ 483 $ 4,636 Variable lease costs 139 253 392 Total lease costs $ 4,292 $ 736 $ 5,028 Year Ended December 31, 2019 Ground Lease Office Lease Total Operating lease costs $ 4,195 $ 483 $ 4,678 Variable lease costs 386 308 694 Total lease costs $ 4,581 $ 791 $ 5,372 For the year ended December 31, 2018 we incurred $4,228 of rent expense payable pursuant to ground leases related to certain hotel properties. For the year ended December 31, 2018, we incurred $785 of rent expense pursuant to office leases. NOTE 6 – LEASES (CONTINUED) Other information related to leases as of and for the year ended December 31, 2020 and 2019 is as follows: December 31, 2020 December 31, 2019 Cash paid from operating cash flows for operating leases $ 4,383 $ 4,851 Weighted average remaining lease term in years 64.2 64.2 Weighted average discount rate 7.86 % 7.86 % Minimum lease payments against lease liabilities are as follows: Amount 2021 $ 5,001 2022 4,463 2023 4,445 2024 4,473 2025 4,515 Thereafter 284,478 Total undiscounted lease payments 307,375 Less imputed interest (253,523) Total lease liability $ 53,852 |
Leases | LEASES In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which provides the principles for the recognition, measurement, presentation and disclosure of leases. The Company adopted the provisions of the update effective January 1, 2019. We elected the modified retrospective transition method upon adoption, which resulted in no cumulative-effect adjustment to the balance of opening retained earnings. As part of our adoption, we elected to utilize the package of practical expedients which allowed us to not reassess existing contracts for embedded leases and not reassess the classification of existing leases. As a result of our adoption, the Company recorded a lease liability and corresponding right of use asset of $55,515 at January 1, 2019 for leases where we are the lessee. Our most significant leases are land leases. We own five hotels within our consolidated portfolio of hotels where we do not own the land on which the hotels reside, rather we lease the land from an unrelated third-party lessor. All of our land leases are classified as operating leases and have initial terms, with extension options that range from May 2062 to October 2103. Based on the nature of these leases, the Company assumed that all extension options would be fully executed. For land leases that include variable payments, those include payments that are tied to an index such as the consumer price index or include rental payments based partially on the hotel revenues. Two additional office space leases are also factored into the lease liability and are classified as operating leases with terms ranging from January 2022 to December 2027. For office space leases that include variable payments, those include payments for the Company's proportionate share of the building's property taxes, insurance, and common area maintenance. The Company applied judgments related to the determination of the discount rates used to calculate the lease liability upon adoption at January 1, 2019. Since the discount rate implicit in the leases could not be readily determinable, we had to calculate our incremental borrowing rate as defined by ASC Topic 842. In order to calculate our incremental borrowing rate, the Company utilized judgments and estimates regarding the Company's market credit rating, comparable market bond yield curve, and adjustments to market yield curves to determine a securitized rate. We are also a lessor in certain office space and retail lease agreements related to our hotels and the adoption of this ASU did not have a material impact on our accounting for leases where we are the lessor. The adoption of this ASU did not impact revenue recognition policies for the Company. We record lease costs incurred from ground leases as expenses as presented within Hotel Ground Rent in the Consolidated Statements of Operations. Lease costs incurred from office leases are recorded to expense and presented within General and Administrative Expense in the Consolidated Statements of Operations. The components of lease costs for the year ended December 31, 2020 and 2019 were as follows: Year Ended December 31, 2020 Ground Lease Office Lease Total Operating lease costs $ 4,153 $ 483 $ 4,636 Variable lease costs 139 253 392 Total lease costs $ 4,292 $ 736 $ 5,028 Year Ended December 31, 2019 Ground Lease Office Lease Total Operating lease costs $ 4,195 $ 483 $ 4,678 Variable lease costs 386 308 694 Total lease costs $ 4,581 $ 791 $ 5,372 For the year ended December 31, 2018 we incurred $4,228 of rent expense payable pursuant to ground leases related to certain hotel properties. For the year ended December 31, 2018, we incurred $785 of rent expense pursuant to office leases. NOTE 6 – LEASES (CONTINUED) Other information related to leases as of and for the year ended December 31, 2020 and 2019 is as follows: December 31, 2020 December 31, 2019 Cash paid from operating cash flows for operating leases $ 4,383 $ 4,851 Weighted average remaining lease term in years 64.2 64.2 Weighted average discount rate 7.86 % 7.86 % Minimum lease payments against lease liabilities are as follows: Amount 2021 $ 5,001 2022 4,463 2023 4,445 2024 4,473 2025 4,515 Thereafter 284,478 Total undiscounted lease payments 307,375 Less imputed interest (253,523) Total lease liability $ 53,852 |
Commitments And Contingencies A
Commitments And Contingencies And Related Party Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies And Related Party Transactions | COMMITMENTS AND CONTINGENCIES AND RELATED PARTY TRANSACTIONS Management Agreements Our wholly-owned TRS, 44 New England Management Company, and certain of our joint venture entities engage eligible independent contractors in accordance with the requirements for qualification as a REIT under the Internal Revenue Code of 1986, as amended, including Hersha Hospitality Management Limited Partnership (“HHMLP”), as the property managers for hotels it leases from us pursuant to management agreements. HHMLP is owned, in part, by certain executives and trustees of the Company. Our management agreements with HHMLP provide for five-year terms and are subject to early termination upon the occurrence of defaults and certain other events described therein. As required under the REIT qualification rules, HHMLP must qualify as an “eligible independent contractor” during the term of the management agreements. Under the management agreements, HHMLP generally pays the operating expenses of our hotels. All operating expenses or other expenses incurred by HHMLP in performing its authorized duties are reimbursed or borne by our TRS to the extent the operating expenses or other expenses are incurred within the limits of the applicable approved hotel operating budget. HHMLP is not obligated to advance any of its own funds for operating expenses of a hotel or to incur any liability in connection with operating a hotel. Management agreements with other unaffiliated hotel management companies have similar terms. For its services, HHMLP receives a base management fee and, if a hotel exceeds certain thresholds, an incentive management fee. The base management fee for a hotel is due monthly and is equal to 3% of gross revenues associated with each hotel managed for the related month. The incentive management fee, if any, for a hotel is due annually in arrears on the ninetieth day following the end of each fiscal year and is based upon the financial performance of the hotels. For the years ended December 31, 2020, 2019 and 2018, base management fees incurred totaled $4,795, $14,123 and $13,309 respectively, and are recorded as Other Hotel Operating Expenses. For the year ended December 31, 2020, 2019 and 2018, incentive management fees incurred totaled $0, $161 and $98 respectively. Franchise Agreements Our branded hotel properties are operated under franchise agreements assumed by the hotel property lessee. The franchise agreements have 10 to 20 year terms, but may be terminated by either the franchisee or franchisor on certain anniversary dates specified in the agreements. The franchise agreements require annual payments for franchise royalties, reservation, and advertising services, and such payments are based upon percentages of gross room revenue. These payments are paid by the hotels and charged to expense as incurred. Franchise fee expenses for the years ended December 31, 2020, 2019 and 2018 were $7,237, $23,389 and $22,802 respectively, and are recorded in Other Hotel Operating Expenses. The initial fees incurred to enter into the franchise agreements are amortized over the life of the franchise agreements. Accounting and Information Technology Fees Each of the wholly-owned hotels and consolidated joint venture hotel properties managed by HHMLP incurs a monthly accounting and information technology fee. Monthly fees for accounting services are between $2 and $3 per property and monthly information technology fees range from $1 to $2 per property. For the years ended December 31, 2020, 2019 and 2018, the Company incurred accounting fees of $1,298, $1,261 and $1,235 respectively. For the years ended December 31, 2020, 2019 and 2018, the Company incurred information technology fees of $419, $402 and $402 respectively. Accounting fees and information technology fees are included in Other Hotel Operating Expenses. Capital Expenditure Fees HHMLP charges a 5% fee on certain capital expenditures and pending renovation projects at the properties as compensation for procurement services related to capital expenditures and for project management of renovation projects. For the years ended December 31, 2020, 2019 and 2018, we incurred fees of $1,148, $2,525 and $2,511 respectively, which were capitalized with the cost of the related capital expenditures. NOTE 7 – COMMITMENTS AND CONTINGENCIES AND RELATED PARTY TRANSACTIONS (CONTINUED) Acquisitions from Affiliates We have entered into an option agreement with certain of our officers and trustees such that we obtain a right of first refusal to purchase any hotel owned or developed in the future by these individuals or entities controlled by them at fair market value. This right of first refusal would apply to each party until one year after such party ceases to be an officer or trustee of the Company. Our Acquisition Committee of the Board of Trustees is comprised solely of independent trustees, and the purchase prices and all material terms of the purchase of hotels from related parties are approved by the Acquisition Committee. Hotel Supplies For the years ended December 31, 2020, 2019 and 2018, we incurred charges for hotel supplies of $82, $307 and $470 respectively. For the years ended December 31, 2020, 2019 and 2018, we incurred charges for capital expenditure purchases of $1,212, $12,721 and $2,258 respectively. These purchases were made from Hersha Purchasing and Design, a hotel supply company owned, in part, by certain executives and trustees of the Company. Hotel supplies are expensed and included in Hotel Operating Expenses on our consolidated statements of operations, and capital expenditure purchases are included in investment in hotel properties on our consolidated balance sheets. Insurance Services The Company utilizes the services of the Hersha Group, a risk management business owned, in part, by certain executives and trustees of the Company. The Hersha Group provides brokerage services to the Company related to the placement of property and casualty insurance, and general liability insurance for our hotel properties. The total costs of property insurance that we paid through the Hersha Group were $6,968, $5,934, and $4,799 for the years ended December 31, 2020, 2019 and 2018. These amounts paid to the Hersha Group include insurance premiums and brokerage fees as compensation for brokerage services. Restaurant Lease Agreements with Independent Restaurant Group The Company enters into lease agreements with a number of restaurant management companies for the lease of restaurants located within our hotels. The Company previously entered into lease agreements with Independent Restaurant Group (“IRG”) for restaurants at three of its hotel properties. Jay H. Shah and Neil H. Shah, executive officers and/or trustees of the Company, collectively own a 70.0% interest in IRG. The Company’s restaurant lease agreements with IRG generally provide for a term of five years and the payment of base rents and percentage rents, which are based on IRG’s revenue in excess of defined thresholds. Effective April 1, 2020, each of these lease agreements became a management agreement between the Company and IRG, subject to the supervision of HHMLP, as property manager. At the time of the conversion of the lease agreements to management agreements, there was rent due of $103, which was forgiven due to the impact of the COVID-19 pandemic on the operations of our hotels and IRG's restaurants. The total amount of revenue recognized from IRG was $0 and $323 for the years ended December 31, 2020 and 2019, respectively. Due From Related Parties The due from related parties balance as of December 31, 2020 and December 31, 2019 was approximately $2,641 and $6,113, respectively. The balances primarily consisted of working capital deposits made to HHMLP and other entities owned, in part, by certain executives and trustees of the Company. Due to Related Parties The balance due to related parties as of December 31, 2020 and December 31, 2019 was $0. Litigation We are not presently subject to any material litigation nor, to our knowledge, is any other litigation threatened against us, other than routine actions for negligence or other claims and administrative proceedings arising in the ordinary course of business, some of which are expected to be covered by liability insurance and all of which collectively are not expected to have a material adverse effect on our liquidity, results of operations or business or financial condition. |
Fair Value Measurements And Der
Fair Value Measurements And Derivative Instruments | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value Measurements And Derivative Instruments | FAIR VALUE MEASUREMENTS AND DERIVATIVE INSTRUMENTS Fair Value Measurements Our determination of fair value measurements are based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, we utilize a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy). Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access. Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates, foreign exchange rates and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs for the asset or liabilities, which are typically based on an entity’s own assumptions, as there is little, if any, related market activity. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability. As of December 31, 2020, the Company’s derivative instruments represented the only financial instruments measured at fair value. Currently, the Company uses derivative instruments, such as interest rate swaps and caps, to manage its interest rate risk. The valuation of these instruments is determined using widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs. We incorporate credit valuation adjustments to appropriately reflect both our own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, we have considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts and guarantees. Although we have determined that the majority of the inputs used to value our derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with our derivatives utilize Level 3 inputs, such as estimates of current credit spreads, to evaluate the likelihood of default by us and the counterparties. However, as of December 31, 2020 we have assessed the significance of the effect of the credit valuation adjustments on the overall valuation of our derivative positions and have determined that the credit valuation adjustments are not significant to the overall valuation of our derivatives. As a result, we have determined that our derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy. Derivative Instruments The Company’s objective in using derivatives is to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps and interest rate caps as part of its cash flow hedging strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts in exchange for fixed-rate payments over the life of the agreements without exchange of the underlying principal amount. Interest rate caps designated as cash flow hedges limit the Company’s exposure to increased cash payments due to increases in variable interest rates. The table on the following page presents our derivative instruments as of December 31, 2020 and 2019. NOTE 8 – FAIR VALUE MEASUREMENTS AND DERIVATIVE INSTRUMENTS (CONTINUED) Estimated Fair Value Asset / (Liability) Balance Hedged Debt Type Strike Rate Index Effective Date Derivative Contract Maturity Date Notional Amount December 31, 2020 December 31, 2019 Term Loan Instruments: Secured Credit Facility Swap 1.341 % 1-Month LIBOR + 2.20% 2019-10-03 2021-08-02 150,000 (1,070) 539 Secured Credit Facility Swap 1.316 % 1-Month LIBOR + 2.20% 2019-09-03 2021-08-02 43,900 (307) 175 Secured Credit Facility Swap 1.824 % 1-Month LIBOR + 2.20% 2019-09-03 2022-08-10 103,500 (2,793) (718) Secured Credit Facility Swap 1.824 % 1-Month LIBOR + 2.20% 2019-09-03 2022-08-10 103,500 (2,793) (718) Secured Credit Facility Swap 1.460 % 1-Month LIBOR + 2.00% 2019-09-10 2024-09-10 300,000 (13,286) 1,776 Mortgages: Courtyard, LA Westside, Culver City, CA Swap 1.683 % 1-Month LIBOR + 2.75% 2017-08-01 2020-08-01 35,000 — (8) Annapolis Waterfront Hotel, MD Cap 3.350 % 1-Month LIBOR + 2.65% 2018-05-01 2021-05-01 28,000 — — Hyatt, Union Square, New York, NY Swap 1.870 % 1-Month LIBOR + 2.30% 2019-06-07 2023-06-07 56,000 (2,305) (556) Hilton Garden Inn Tribeca, New York, NY Swap 1.768 % 1-Month LIBOR + 2.25% 2019-07-25 2024-07-25 22,725 (1,222) (169) Hilton Garden Inn Tribeca, New York, NY Swap 1.768 % 1-Month LIBOR +2.25% 2019-07-25 2024-07-25 22,725 (1,222) (169) Hilton Garden Inn 52nd Street, New York, NY Swap 1.540 % 1-Month LIBOR + 2.30% 2019-12-04 2022-12-04 44,325 (1,186) 23 Courtyard, LA Westside, Culver City, CA Swap 0.495 % 1-Month LIBOR + 2.75% 2020-06-01 2021-08-01 35,000 (75) — $ (26,259) $ 175 The fair value of certain swaps and our interest rate caps is included in other assets at December 31, 2020 and December 31, 2019 and the fair value of certain of our interest rate swaps is included in accounts payable, accrued expenses and other liabilities at December 31, 2020 and December 31, 2019. The net change related to derivative instruments designated as cash flow hedges recognized as unrealized gains and losses reflected on our consolidated balance sheet in accumulated other comprehensive income was a loss of $22,348, a loss of $3,495, and a gain of $516 for the years ended December 31, 2020, 2019 and 2018, respectively. NOTE 8 – FAIR VALUE MEASUREMENTS AND DERIVATIVE INSTRUMENTS (CONTINUED) Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s variable-rate derivatives. The change in net unrealized gains/losses on cash flow hedges reflects a reclassification of $4,083, $1,007 and $2,827 of net unrealized gains/losses from accumulated other comprehensive income as an increase/decrease to interest expense during 2020, 2019 and 2018, respectively. During 2021, the Company estimates that an additional $11,508 will be reclassified as an increase to interest expense. Fair Value of Debt |
Share Based Payments
Share Based Payments | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share Based Payments | SHARE BASED PAYMENTS We measure the cost of employee service received in exchange for an award of equity instruments based on the grant-date fair value of the award. The compensation cost is amortized on a straight-line basis over the period during which an employee is required to provide service in exchange for the award. The compensation cost related to performance awards that are contingent upon market-based criteria being met is recorded at the fair value of the award on the date of the grant and amortized over the performance period. As discussed in Note 1 forfeitures of share-based awards are expensed as they occur. Our shareholders approved the Hersha Hospitality Trust 2012 Equity Incentive Plan, as amended, (the “2012 Plan”) for the purpose of attracting and retaining executive officers, employees, trustees and other persons and entities that provide services to the Company. Summary of Share Based Compensation Programs Executives The Compensation Committee of our Board of Trustees implements executive compensation strategies that align the interests of the Company’s executives with those of shareholders. It does so through a mix of base salary, the Short Term Incentive Program ("STIP"), and the Long-Term Incentive Program ("LTIP"). The STIP and LTIP are incentive compensation programs that align executive compensation with the performance of the Company. Prior to 2019, executives participated in our legacy incentive compensation programs, the Annual Cash Incentive Program ("ACIP"), the Annual Long Term Equity Incentive Program ("Annual EIP"), and the Multi-Year Long Term Equity Incentive Program ("Multi-Year EIP"). Equity may be awarded under any of these programs in the form of stock awards, LTIP Units, or performance share awards issuable pursuant to the 2012 Plan. • Short Term Incentive Program - On August 3, 2020, the Compensation Committee approved the 2020 STIP, pursuant to which the executive officers are eligible to earn cash and equity awards based on achieving a threshold, target or maximum level of defined performance objectives at the end of the performance period, December 31, 2020. Any amounts earned are satisfied 50% in cash and 50% in equity awards. The Compensation Committee provided the option to the executive officers to elect equity awards in lieu of cash payment for amounts earned under the 2020 STIP. For the 2020 STIP, 2019 STIP and the 2018 ACIP, each executive elected to receive 100% of amounts earned under each program in equity. Equity issued under the 2020 STIP, 2019 STIP and the 2018 ACIP vest on the two year anniversary following the end of the performance period. The Company accounts for grants earned under the STIP as performance awards for which the Company assesses the probability of achievement of the performance conditions at the end of each period. Estimates of amounts earned under the STIP are recorded in general and administrative expense on the consolidated statement of operations and a liability is recorded in accounts payable, accrued expenses and other liabilities on the consolidated balance sheet. As of December 31, 2020, no shares or LTIP Units have been issued to the executive officers in settlement of the 2020 STIP. • Long Term Incentive Program - On August 3, 2020, the Compensation Committee approved the 2020 LTIP pursuant to which the executive officers are eligible to earn equity awards based on achieving a threshold, target or maximum level of defined market and performance objectives at the end of the performance period, December 31, 2020. This program has a three-year performance period which commenced on January 1, 2020 and ends December 31, 2022. The shares or LTIP Units issuable under the LTIP or legacy long term incentive programs are based on the Company’s achievement of a certain level of (1) absolute total shareholder return (37.5% of the award), (2) relative total shareholder return as compared to the Company’s peer group (37.5% of the award), and (3) relative growth in revenue per available room ("RevPar") compared to the Company’s peer group (25.0% of the award). The Company accounts for the total shareholder return components of these grants as market based awards where the Company estimates unearned compensation at the grant date fair value which is then amortized into compensation cost over the vesting period of each individual plan. The Company accounts for the RevPAR component of the grants as performance-based awards for which the Company assesses the probable achievement of the performance conditions at the end of the reporting period. As of December 31, 2020, no shares or LTIP Units have been issued to the executive officers in settlement of the 2020 LTIP awards. NOTE 9 – SHARE BASED PAYMENTS (CONTINUED) Remaining unearned compensation for LTIP Units issued to executives in settlement of awards under the STIP, LTIP or the Company’s legacy incentive compensation programs is recorded in noncontrolling interests on the Company’s consolidated balance sheets and is amortized in general and administrative expense on the consolidated statement of operations over the remaining vesting period. Trustees To align the interests of the Company’s trustees with those of shareholders, our trustees receive equity as a component of the compensation for their service on our board of trustees. • Share Awards - Historically, our trustees received biennial share awards that vest immediately upon issuance. For 2020, share awards were granted quarterly and the trustees voluntarily elected share awards to be issued subject to vesting. These shares vested in January 2021. • Trustee Long Term Incentive Program - Trustees receive grants of restricted shares which vest over a three-year period subject to continued service to the Company’s board of trustees. • Board Fee Compensation Elected in Equity - Historically, trustees could make a voluntary election to receive any portion of their board fee compensation in the form of common equity valued at a 25% premium to the cash that would have been received. Shares issued for board retainer elected in equity vest over the year of service covered by the retainer and shares issued for service as lead director, committee chair and committee membership vest immediately upon issuance. For 2020, these shares were granted quarterly and the trustees voluntarily elected share awards to be issued subject to vesting. These shares vested in January 2021. For shares issued that are subject to vesting, unearned compensation is recorded in additional paid in capital on the consolidated balance sheet and is amortized in general and administrative expense on the consolidated statement of operations over the vesting period. Share based compensation for shares issued that immediately vest is recorded in general and administrative expense on the consolidated statement of operations. Employees and Non-Employees Grants of restricted shares are issued to attract, retain and reward employees and non-employees that are critical to the Company’s success. These restricted shares typically vest over a period of between one NOTE 9 – SHARE BASED PAYMENTS (CONTINUED) Share Based Compensation Activity A summary of our share based compensation activity from January 1, 2018 to December 31, 2020 is as follows: LTIP Unit Awards Restricted Share Awards Share Awards Number of Units Weighted Average Grant Date Fair Value Number of Restricted Shares Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value Unvested Balance as of January 1, 2018 107,217 $ 19.63 86,833 $ 18.58 — Granted 589,106 17.91 76,314 19.56 34,752 $ 19.64 Vested (245,420) 18.59 (70,713) 18.38 (34,752) 19.64 Forfeited — N/A (575) 18.04 — N/A Unvested Balance as of December 31, 2018 450,903 17.95 91,859 19.56 — Granted 530,281 18.00 83,805 16.40 42,533 16.01 Vested (539,983) 17.97 (80,924) 19.11 (42,533) 16.01 Forfeited — N/A (2,638) 19.78 — N/A Unvested Balance as of December 31, 2019 441,201 17.99 92,102 17.07 — Granted 1,112,862 5.24 189,851 5.34 — N/A Vested (655,937) 12.56 (78,962) 12.49 — N/A Forfeited — N/A (113) 18.00 — N/A Unvested Balance as of December 31, 2020 898,126 6.15 202,878 7.87 — NOTE 9 – SHARE BASED PAYMENTS (CONTINUED) The following table summarizes share based compensation expense and unearned compensation for the years ended December 31, 2020, 2019, and 2018 and as of December 31, 2020 and 2019: Share Based Unearned For the Year Ended As of 12/31/2020 12/31/2019 12/31/2018 12/31/2020 12/31/2019 Issued Awards LTIP Unit Awards 6,105 5,646 4,120 1,842 2,878 Restricted Share Awards 2,063 1,495 1,443 276 1,051 Share Awards — 680 680 — — Unissued Awards Market Based 1,320 1,467 1,120 1,933 2,739 Performance Based — 1,515 4,073 — — Total $ 9,488 $ 10,803 $ 11,436 $ 4,051 $ 6,668 The weighted-average period of which the unrecognized compensation expense will be recorded is approximately 1.5 years for LTIP Unit Awards and 1.2 years for Restricted Share Awards. The remaining unvested target units are expected to vest as follows: 2021 2022 2023 LTIP Unit Awards 898,126 — — Restricted Share Awards 191,177 8,170 3,531 1,089,303 8,170 3,531 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE The following table is a reconciliation of the income or loss (numerator) and the weighted average shares (denominator) used in the calculation of basic and diluted earnings per common share. The computation of basic and diluted earnings per share is presented below. Twelve Months Ended December 31, 2020 2019 2018 NUMERATOR: Basic and Diluted* Net (Loss) Income $ (189,260) $ (5,847) $ 8,365 Loss allocated to Noncontrolling Interests 22,915 2,178 1,625 Distributions to Preferred Shareholders (24,176) (24,174) (24,174) Dividends Paid on Unvested Restricted Shares and LTIP Units — (981) (740) Net Loss from Continuing Operations attributable to Common Shareholders $ (190,521) $ (28,824) $ (14,924) DENOMINATOR: Weighted average number of common shares - basic 38,613,563 38,907,894 39,383,763 Effect of dilutive securities: Restricted Stock Awards and LTIP Units (unvested) — — — Contingently Issued Shares and Units — — — Weighted average number of common shares - diluted 38,613,563 38,907,894 39,383,763 * Income (loss) allocated to noncontrolling interest in HHLP has been excluded from the numerator and Common Units and Vested LTIP Units have been omitted from the denominator for the purpose of computing diluted earnings per share since including these amounts in the numerator and denominator would have no impact. In addition, potentially dilutive common shares, if any, have been excluded from the denominator if they are anti-dilutive to income (loss) applicable to common shareholders. |
Cash Flow Disclosures And Non C
Cash Flow Disclosures And Non Cash Investing And Financing Activities | 12 Months Ended |
Dec. 31, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
Cash Flow Disclosures And Non Cash Investing And Financing Activities | CASH FLOW DISCLOSURES AND NON CASH INVESTING AND FINANCING ACTIVITIES Interest paid during 2020, 2019 and 2018 totaled $38,170, $54,158 and $49,148 respectively. Net Cash paid on Interest Rate Derivative contracts during 2020, 2019 and 2018 totaled 7,635, (4,336) and (2,728), respectively. Cash paid for income taxes during 2020, 2019 and 2018 was $79, $53 and $1,140, respectively. The following non-cash investing and financing activities occurred during 2020, 2019 and 2018: 2020 2019 2018 Common Shares issued as part of the Dividend Reinvestment Plan $ 14 $ 60 $ 77 Acquisition of hotel properties: Deposit paid in prior period towards acquisition which closed in current period — — 1,000 Conversion of note payable and accrued interest to Non-Controlling Interest — — 3,387 Conversion of Common Units to Common Shares — — 1,173 Issuance of share based payments 7,259 12,924 13,661 Accrued payables for fixed assets placed into service 658 2,506 2,912 Cumulative Effect on Equity from the Adoption of ASC Subtopic 610-20 — — 129,021 Adjustment to Record Non-Controlling Interest at Redemption Value (3,196) 488 2,708 Adjustment to Record Right of Use Asset & Lease Liability — 55,515 — The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statements of cash flows for the year ended December 31, 2020, 2019 and 2018: 2020 2019 2018 Cash and cash equivalents $ 16,637 $ 27,012 $ 32,598 Escrowed cash 6,970 9,973 8,185 Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows $ 23,607 $ 36,985 $ 40,783 Amounts included in restricted cash represent those required to be set aside in escrow by contractual agreement with various lenders for the payment of specific items such as property insurance, property tax, and capital expenditures. |
Shareholders' Equity And Noncon
Shareholders' Equity And Noncontrolling Interests In Partnership | 12 Months Ended |
Dec. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity And Noncontrolling Interests In Partnership | SHAREHOLDERS’ EQUITY AND NONCONTROLLING INTERESTS IN PARTNERSHIP Common Shares The Company’s outstanding common shares have been duly authorized, and are fully paid and non-assessable. Common shareholders are entitled to receive dividends if and when authorized and declared by the Board of Trustees of the Company out of assets legally available and to share ratably in the assets of the Company legally available for distribution to its shareholders in the event of its liquidation, dissolution or winding up after payment of, or adequate provision for, all known debts and liabilities of the Company. Preferred Shares The Declaration of Trust authorizes our Board of Trustees to classify any unissued preferred shares and to reclassify any previously classified but unissued preferred shares of any series from time to time in one or more series, as authorized by the Board of Trustees. Prior to issuance of shares of each series, the Board of Trustees is required by Maryland REIT Law and our Declaration of Trust to set for each such series, subject to the provisions of our Declaration of Trust regarding the restriction on transfer of shares of beneficial interest, the terms, the preferences, conversion or other rights, voting powers, restrictions, limitations as to dividends or other distributions, qualifications and terms or conditions of redemption for each such series. Thus, our Board of Trustees could authorize the issuance of additional preferred shares with terms and conditions which could have the effect of delaying, deferring or preventing a transaction or a change in control in us that might involve a premium price for holders of common shares or otherwise be in their best interest. Common Units Common Units are issued in connection with the acquisition of wholly owned hotels and joint venture interests in hotel properties. The total number of Common Units outstanding as of December 31, 2020, 2019 and 2018 was 2,066,615, 2,066,615 and 2,066,615, respectively. These units can be redeemed for cash or converted to common shares, at the Company’s option, on a one-for-one basis. The number of common shares issuable upon exercise of the redemption rights will be adjusted upon the occurrence of stock splits, mergers, consolidation or similar pro rata share transactions, that otherwise would have the effect of diluting the ownership interest of the limited partners or our shareholders. During December 31, 2020, 2019 and 2018, 0, 0 and 62,807 Common Units were converted to common shares, respectively. In addition, as noted in “Note 9 – Share Based Payments,” during 2020, the Company issued 1,112,862 LTIP Units. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The Company elected to be taxed as a REIT under Sections 856 through 860 of the Code commencing with its taxable year ended December 31, 1999. To qualify as a REIT, the Company must meet a number of organizational and operational requirements, including a requirement that it currently distribute at least 90% of its REIT taxable income, determined without regard to the deduction for dividends paid and excluding net capital gain, to its shareholders. It is the Company’s current intention to adhere to these requirements and maintain the Company’s qualification for taxation as a REIT. As a REIT, the Company generally will not be subject to federal corporate income tax on that portion of its net income that is currently distributed to shareholders. If the Company fails to qualify for taxation as a REIT in any taxable year, it will be subject to federal income taxes at regular corporate rates (including any applicable alternative minimum tax for taxable years prior to 2018) and may not be able to qualify as a REIT for four subsequent taxable years. Even if the Company qualifies for taxation as a REIT, the Company may be subject to certain state and local taxes on its income and property, and to federal income and excise taxes on its undistributed taxable income. Taxable income from non-REIT activities managed through TRSs is subject to federal, state and local income taxes. As a TRS, 44 New England is subject to income taxes at the applicable federal, state and local tax rates. The provision for income taxes differs from the amount of income tax determined by applying the applicable statutory federal income tax rate (21%) to pretax income from continuing operations as a result of the following differences: For the year ended December 31, 2020 2019 2018 Statutory federal income tax provision $ (37,365) $ (1,208) $ 1,813 Adjustment for nontaxable income for Hersha Hospitality Trust 29,636 1,419 (1,269) State income taxes, net of federal income tax effect (2,720) 456 32 Non-deductible expenses, tax credits, and other, net (1,317) (575) (309) Changes in valuation allowance 23,095 — — Total income tax expense $ 11,329 $ 92 $ 267 NOTE 13 – INCOME TAXES (CONTINUED) The components of the Company’s income tax expense (benefit) from continuing operations for the years ended December 31, 2020, 2019 and 2018 were as follows: For the year ended December 31, 2020 2019 2018 Income tax expense (benefit): Current: Federal $ (51) $ (60) $ (119) State (10) 464 530 Deferred: Federal 7,688 (302) 467 State 3,702 (10) (611) Total $ 11,329 $ 92 $ 267 The components of consolidated TRS’s net deferred tax asset as of December 31, 2020 and 2019 were as follows: As of December 31, 2020 2019 Deferred tax assets: Net operating loss carryforwards $ 21,569 $ 9,871 Accrued expenses and other 1,493 1,641 Tax credit carryforwards 355 415 Depreciation and amortization 174 (40) Total gross deferred tax assets 23,591 11,887 Valuation allowance (23,591) (497) Total Net deferred tax assets $ — $ 11,390 In assessing the realizability of deferred tax assets, Management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. Based on the level of historical taxable income and projections for future taxable income over which the deferred tax assets are deductible and limitations related to the utilization of certain tax attribute carryforwards, Management believes it is more likely than not that the remaining deferred tax assets will not be realized. The Company recorded an additional valuation allowance of $23,095. As of December 31, 2020, we have gross federal net operating loss carryforwards of $78,070 of which $34,255 expire over various periods from 2023 through 2036 and $43,815 carries forward indefinitely. As of December 31, 2020, we have gross state net operating loss carryforwards of $85,355 which expire over various periods from 2023 to 2040. The Company has tax credits of $355 available which begin to expire in 2032. NOTE 13 – INCOME TAXES (CONTINUED) Earnings and profits, which will determine the taxability of distributions to shareholders, will differ from net income reported for financial reporting purposes due to the differences for federal tax purposes in the estimated useful lives and methods used to compute depreciation. The following table sets forth certain per share information regarding the Company’s common and preferred share distributions for the years ended December 31, 2020, 2019 and 2018. 2020 2019 2018 Preferred Shares - 6.875% Series C Ordinary income 0.00 % 100.00 % 100.00 % Return of Capital 100.00 % 0.00 % 0.00 % Capital Gain Distribution 0.00 % 0.00 % 0.00 % Preferred Shares - 6.5% Series D Ordinary income 0.00 % 100.00 % 100.00 % Return of Capital 100.00 % 0.00 % 0.00 % Capital Gain Distribution 0.00 % 0.00 % 0.00 % Preferred Shares - 6.5% Series E Ordinary income 0.00 % 100.00 % 100.00 % Return of Capital 100.00 % 0.00 % 0.00 % Capital Gain Distribution 0.00 % 0.00 % 0.00 % Common Shares - Class A Ordinary income 0.00 % 33.03 % 37.91 % Return of Capital 100.00 % 66.97 % 62.09 % Capital Gain Distribution 0.00 % 0.00 % 0.00 % |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2020 | |
Selected Quarterly Financial Information [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) Year Ended December 31, 2020 First Quarter Second Quarter Third Quarter Fourth Quarter Hotel Operating Revenues: Room $ 71,083 $ 15,139 $ 27,546 $ 28,492 Food & Beverage 10,075 136 2,441 2,766 Other 8,780 2,137 3,734 4,114 Other Revenues 235 31 26 10,082 Hotel Operating Expenses: Room 19,092 3,622 7,436 8,637 Food & Beverage 10,621 721 2,344 2,513 Other 35,806 14,035 17,965 17,464 Other Expenses 54,106 54,471 53,534 59,443 (Loss) Income from Unconsolidated Joint Ventures (1,018) (502) (669) (749) Income (Loss) Before Income Taxes (30,470) (55,908) (48,201) (43,352) Income Tax (Expense) Benefit 4,498 (15,872) 28 17 Net Income (25,972) (71,780) (48,173) (43,335) Income (loss) Allocated to Noncontrolling Interests (2,897) (7,164) (5,032) (4,605) Income (loss) Allocated to Noncontrolling Interests - Consolidated Joint Venture — (3,196) — (21) Preferred Distributions 6,044 6,044 6,044 6,044 Net Income (Loss) applicable to Common Shareholders $ (29,119) $ (67,464) $ (49,185) $ (44,753) Earnings per share: Basic Net Income (Loss) applicable to Common Shareholders $ (0.76) $ (1.75) $ (1.27) $ (1.16) Diluted Net Income (Loss) applicable to Common Shareholders $ (0.76) $ (1.75) $ (1.27) $ (1.16) Weighted Average Common Shares Outstanding - Basic 38,564,099 38,609,922 38,639,048 38,640,604 Weighted Average Common Shares Outstanding - Diluted 38,564,099 38,609,922 38,639,048 38,640,604 Year Ended December 31, 2019 First Quarter Second Quarter Third Quarter Fourth Quarter Hotel Operating Revenues: Room $ 91,485 $ 118,980 $ 108,909 $ 105,324 Food & Beverage 14,228 18,253 15,870 17,028 Other 8,930 10,280 10,140 10,241 Other Revenues 274 46 142 124 Hotel Operating Expenses: Room 22,090 24,013 24,000 23,385 Food & Beverage 12,832 13,990 12,605 13,393 Other 40,189 44,607 43,476 42,856 Other Expenses 53,133 55,658 55,062 55,411 (Loss) Income from Unconsolidated Joint Ventures 181 299 38 173 (Loss) Income Before Income Taxes (13,146) 9,590 (44) (2,155) Income Tax Benefit 5,264 (4,031) 551 (1,876) Net (Loss) Income (7,882) 5,559 507 (4,031) (Loss) Income Allocated to Noncontrolling Interests (1,063) (49) (442) (812) (Loss) Income Allocated to Noncontrolling Interests - Consolidated Joint Ventures 140 (292) 340 — Preferred Distributions 6,044 6,043 6,044 6,043 Net (Loss) Income applicable to Common Shareholders $ (13,003) $ (143) $ (5,435) $ (9,262) Earnings per share: Basic Net (Loss) Income applicable to Common Shareholders $ (0.34) $ (0.01) $ (0.15) $ (0.24) Diluted Net (Loss) Income applicable to Common Shareholders $ (0.34) $ (0.01) $ (0.15) $ (0.24) Weighted Average Common Shares Outstanding - Basic 39,115,390 39,127,385 38,878,818 38,516,879 Weighted Average Common Shares Outstanding - Diluted 39,115,390 39,127,385 38,878,818 38,516,879 |
Schedule III - Real Estate And
Schedule III - Real Estate And Accumulated Depreciation | 12 Months Ended |
Dec. 31, 2020 | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation Disclosure [Abstract] | |
Schedule III - Real Estate And Accumulated Depreciation | SCHEDULE III – REAL ESTATE AND ACCUMULATED DEPRECIATION AS OF DECEMBER 31, 2020 [IN THOUSANDS] Initial Costs Costs Capitalized Subsequent to Acquisition (1) Gross Amounts at which Carried at Close of Period Accumulated Depreciation Net Book Value Description Encumbrances Land Buildings & Improvements Land Buildings & Improvements Land Buildings & Improvements Total Buildings & Improvements* Land, Buildings & Improvements Date of Acquisition Courtyard by Marriott Brookline, — 47,414 — 5,021 — 52,435 52,435 (22,329) 30,106 2005-06-16 Annapolis Waterfront Hotel, Annapolis, MD (28,000) — 43,251 — 4,112 — 47,363 47,363 (3,440) 43,923 2018-03-28 Hilton Garden Inn JFK, — 25,018 — 3,999 — 29,017 29,017 (12,303) 16,714 2006-02-16 Holiday Inn Express Cambridge, 1,956 9,793 — 5,328 1,956 15,121 17,077 (6,454) 10,623 2006-05-03 Hyatt House White Plains, 8,823 30,273 — 12,855 8,823 43,128 51,951 (16,552) 35,399 2006-12-28 Hampton Inn Seaport, 7,816 19,040 — 1,601 7,816 20,641 28,457 (7,834) 20,623 2007-02-01 Gate Hotel JFK Airport, — 27,315 — 2,343 — 29,658 29,658 (10,660) 18,998 2008-06-13 Hampton Inn Center City/ Convention Center, 3,490 24,382 — 11,706 3,490 36,088 39,578 (18,342) 21,236 2006-02-15 Duane Street Hotel, 8,213 12,869 — 1,251 8,213 14,120 22,333 (5,986) 16,347 2008-01-04 NU Hotel Brooklyn, — 22,042 — 1,978 — 24,020 24,020 (8,523) 15,497 2008-01-14 Hilton Garden Inn Tribeca, (45,450) 21,077 42,955 — 1,417 21,077 44,372 65,449 (13,462) 51,987 2009-05-01 HERSHA HOSPITALITY TRUST AND SUBSIDIARIES SCHEDULE III – REAL ESTATE AND ACCUMULATED DEPRECIATION AS OF DECEMBER 31, 2020 (CONTINUED) [IN THOUSANDS] Initial Costs Costs Capitalized Subsequent to Acquisition (1) Gross Amounts at which Carried at Close of Period Accumulated Depreciation Net Book Value Description Encumbrances Land Buildings & Improvements Land Buildings & Improvements Land Buildings & Improvements Total Buildings & Improvements* Land, Buildings & Improvements Date of Acquisition Hampton Inn Washington, D.C., 9,335 58,048 — 5,041 9,335 63,089 72,424 (16,833) 55,591 2010-09-01 The Capitol Hill Hotel (25,000) 8,095 35,141 — 5,148 8,095 40,289 48,384 (12,690) 35,694 2011-04-15 Courtyard by Marriott Los Angeles Westside, (35,000) 13,489 27,025 — 4,972 13,489 31,997 45,486 (11,189) 34,297 2011-05-19 Cadillac Hotel & Beach Club, 35,700 55,805 — 44,398 35,700 100,203 135,903 (26,819) 109,084 2011-11-16 The Rittenhouse 7,108 29,556 — 27,942 7,108 57,498 64,606 (26,293) 38,313 2012-03-01 The Boxer Boston, 1,456 14,954 — 2,153 1,456 17,107 18,563 (4,854) 13,709 2012-05-07 Holiday Inn Express Chelsea, 30,329 57,016 — 2,160 30,329 59,176 89,505 (13,486) 76,019 2012-06-18 Hyatt Union Square, (56,000) 32,940 79,300 — 4,176 32,940 83,476 116,416 (17,736) 98,680 2013-04-09 Courtyard by Marriott Downtown San Diego, 15,656 51,674 — 2,152 15,656 53,826 69,482 (11,393) 58,089 2013-05-30 Residence Inn Miami Coconut Grove, 4,146 17,456 — 7,912 4,146 25,368 29,514 (9,685) 19,829 2013-06-12 The Hotel Milo, (21,693) — 55,080 — 4,960 — 60,040 60,040 (12,398) 47,642 2014-02-28 HERSHA HOSPITALITY TRUST AND SUBSIDIARIES SCHEDULE III – REAL ESTATE AND ACCUMULATED DEPRECIATION AS OF DECEMBER 31, 2020 (CONTINUED) [IN THOUSANDS] Initial Costs Costs Capitalized Subsequent to Acquisition (1) Gross Amounts at which Carried at Close of Period Accumulated Depreciation Net Book Value Description Encumbrances Land Buildings & Improvements Land Buildings & Improvements Land Buildings & Improvements Total Buildings & Improvements* Land, Buildings & Improvements Date of Acquisition Hilton Garden Inn Manhattan Midtown East, (44,325) 45,480 60,762 — 577 45,480 61,339 106,819 (10,270) 96,549 2014-05-27 Parrot Key Hotel & Villas, 57,889 33,959 — 14,224 57,889 48,183 106,072 (11,295) 94,777 2014-05-07 The Winter Haven Hotel Miami Beach, 5,400 18,147 — 707 5,400 18,854 24,254 (3,692) 20,562 2013-12-20 The Blue Moon Hotel Miami Beach, 4,874 20,354 — 1,039 4,874 21,393 26,267 (4,232) 22,035 2013-12-20 The St. Gregory Hotel, Dupont Circle, Washington D.C. (22,138) 23,764 33,005 — 7,529 23,764 40,534 64,298 (8,237) 56,061 2015-06-16 TownePlace Suites Sunnyvale, Sunnyvale, CA — 18,999 — 677 — 19,676 19,676 (2,919) 16,757 2015-08-25 The Ritz-Carlton Georgetown, Washington D.C. 17,825 29,584 — 4,114 17,825 33,698 51,523 (5,214) 46,309 2015-12-29 The Sanctuary Beach Resort, Marina, CA (14,207) 20,278 17,319 — 6,887 20,278 24,206 44,484 (5,166) 39,318 2016-01-28 Hilton Garden Inn M Street, Washington D.C. 30,793 67,420 — 243 30,793 67,663 98,456 (8,193) 90,263 2016-03-09 The Envoy Boston Seaport, Boston, MA 25,264 75,979 — 3,928 25,264 79,907 105,171 (9,747) 95,424 2016-07-21 Courtyard by Marriott Sunnyvale, Sunnyvale, CA (40,451) 17,694 53,272 — 83 17,694 53,355 71,049 (5,611) 65,438 2016-10-20 Mystic Marriott Hotel & Spa, Groton, CT 1,420 40,440 — 9,836 1,420 50,276 51,696 (7,342) 44,354 2017-01-03 The Ritz-Carlton Coconut Grove, Coconut Grove, FL 5,185 30,825 — 9,986 5,185 40,811 45,996 (6,047) 39,949 2017-02-01 The Pan Pacific Hotel Seattle, Seattle, WA 13,079 59,255 — 728 13,079 59,983 73,062 (5,783) 67,279 2017-02-21 Philadelphia Westin, Philadelphia, PA 19,154 103,406 — 4,692 19,154 108,098 127,252 (9,706) 117,546 2017-06-29 The Ambrose Hotel, Santa Monica, CA 18,750 26,839 — 1,611 18,750 28,450 47,200 (3,301) 43,899 2016-12-01 Total Investment in Real Estate $ (332,264) $ 516,478 $ 1,474,972 $ — $ 229,486 $ 516,478 $ 1,704,458 $ 2,220,936 $ (396,016) $ 1,824,920 HERSHA HOSPITALITY TRUST AND SUBSIDIARIES SCHEDULE III – REAL ESTATE AND ACCUMULATED DEPRECIATION AS OF DECEMBER 31, 2020 (CONTINUED) [IN THOUSANDS] (1) Costs capitalized subsequent to acquisition include reductions of asset value due to impairment. * Assets are depreciated over a 7 to 40 year life, upon which the latest income statement is computed. The aggregate cost of land, buildings and improvements for Federal income tax purposes for the years ended December 31, 2020, 2019 and 2018 is approximately $1,633,467, $1,675,650 and $1,745,577, respectively. Depreciation is computed for buildings and improvements using a useful life for these assets of 7 to 40 years. See Accompanying Report of Independent Registered Public Accounting Firm HERSHA HOSPITALITY TRUST AND SUBSIDIARIES SCHEDULE III – REAL ESTATE AND ACCUMULATED DEPRECIATION AS OF December 31, 2020 (CONTINUED) [IN THOUSANDS] 2020 2019 2018 Reconciliation of Real Estate Balance at beginning of year $ 2,228,864 $ 2,206,701 $ 2,159,282 Additions during the year 17,967 22,163 122,708 Dispositions/Deconsolidation of consolidated joint venture during the year (25,895) — (75,289) Total Real Estate $ 2,220,936 $ 2,228,864 $ 2,206,701 Reconciliation of Accumulated Depreciation Balance at beginning of year $ 340,499 $ 277,580 $ 238,213 Depreciation for year 64,083 62,919 55,496 Accumulated depreciation on assets sold (8,566) — (16,129) Balance at the end of year $ 396,016 $ 340,499 $ 277,580 |
Organization And Summary Of S_2
Organization And Summary Of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Collaborative Arrangement, Accounting Policy | Hersha Hospitality Trust (“we” or the “Company”) was formed in May 1998 as a self-administered, Maryland real estate investment trust. We have elected to be taxed and expect to continue to elect to be taxed as a real estate investment trust, or REIT, for federal income tax purposes. The Company owns a controlling general partnership interest in Hersha Hospitality Limited Partnership (“HHLP” or the “Partnership”), which owns a 99% limited partnership interest in various subsidiary partnerships. Hersha Hospitality, LLC (“HHLLC”), a Virginia limited liability company, owns a 1% general partnership interest in the subsidiary partnerships and the Partnership is the sole member of HHLLC. The Partnership owns a taxable REIT subsidiary (“TRS”), 44 New England Management Company (“44 New England” or “TRS Lessee”), which leases certain of the Company’s hotels. Hersha’s common shares of beneficial interest trade on the New York Stock Exchange (“the NYSE”) under the ticker symbol "HT," its 6.875% Series C Cumulative Redeemable Preferred Shares of Beneficial Interest trade on the NYSE under the ticker symbol “HT PRC,” its 6.500% Series D Cumulative Redeemable Preferred Shares of Beneficial Interest trade on the NYSE under the ticker symbol “HT PRD,” and it’s 6.500% Series E Cumulative Redeemable Preferred Shares of Beneficial Interest trade on the NYSE under the ticker symbol “HT PRE.” As of December 31, 2020, the Company, through the Partnership and subsidiary partnerships, wholly owned 37 limited and full service hotels. All of the wholly owned hotel facilities are leased to the Company’s TRS, 44 New England. In addition to the wholly owned hotel properties, as of December 31, 2020, the Company owned an unconsolidated joint venture interest in ten properties and a consolidated joint venture interest in one property. The properties owned by the joint ventures are leased to a TRS owned by the joint venture or to an entity owned by the joint venture partners and 44 New England. The following table lists the properties owned by these joint ventures: Joint Venture Ownership Interest Property Location Lessee/Sublessee Consolidated Joint Ventures Hersha Holding RC Owner, LLC 85% Ritz-Carlton Coconut Grove, FL Hersha Holding RC Lessee, LLC Unconsolidated Joint Ventures Cindat Hersha Owner JV, LLC 31.2% Hampton Inn Herald Square, New York, NY Cindat Hersha Lessee JV, LLC Hampton Inn Chelsea, New York, NY Cindat Hersha Lessee JV, LLC Hampton Inn Times Square, New York, NY Cindat Hersha Lessee JV, LLC Holiday Inn Express Times Square, New York, NY Cindat Hersha Lessee JV, LLC Candlewood Suites Times Square, New York, NY Cindat Hersha Lessee JV, LLC Holiday Inn Wall Street, New York, NY Cindat Hersha Lessee JV, LLC Holiday Inn Express Water Street, New York, NY Cindat Hersha Lessee JV, LLC SB Partners, LLC 50% Holiday Inn Express South Boston, MA South Bay Sandeep, LLC Hiren Boston, LLC 50% Courtyard South Boston, MA South Bay Boston, LLC SB Partners Three, LLC 50% Home2 Suites South Boston, MA SB Partners Three Lessee, LLC Subsequent to December 31, 2020, the mezzanine lender to Cindat Hersha Owner JV, LLC foreclosed and took ownership of properties owned by the joint venture. See “Note 2 – Investment in Unconsolidated Joint Venture.” NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) The properties are managed by eligible independent management companies, including Hersha Hospitality Management, LP (“HHMLP”). HHMLP is owned in part by certain of our trustees and executive officers and other unaffiliated third party investors as defined by the Internal Revenue Code. |
Principles Of Consolidation And Presentation | Principles of Consolidation and Presentation The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") and include all of our accounts as well as accounts of the Partnership, subsidiary partnerships and our wholly owned TRS Lessee. All significant inter-company amounts have been eliminated. Consolidated properties are either wholly owned or owned less than 100% by the Partnership and are controlled by the Company as general partner of the Partnership. Properties owned in joint ventures are also evaluated for consolidation. Entities are consolidated if the determination is made that we are the primary beneficiary in a variable interest entity ("VIE") or we maintain control of the asset through our voting interest or other rights in the operation of the entity. To determine if we are the primary beneficiary of a VIE, we evaluate whether we have a controlling financial interest in that VIE. An enterprise is deemed to have a controlling financial interest if it has i) the power to direct the activities of a variable interest entity that most significantly impacts the entity’s economic performance, and ii) the obligation to absorb losses of the VIE that could be significant to the VIE or the rights to receive benefits from the VIE that could be significant to the VIE. Control can also be demonstrated by the ability of a member to manage day-to-day operations, refinance debt and sell the assets of the partnerships without the consent of the other member and the inability of the members to replace the managing member. Based on our examination, the following entities were determined to be VIE’s: HHLP; Cindat Hersha Lessee JV, LLC; South Bay Boston, LLC; SB Partners Three Lessee, LLC; Hersha Holding RC Owner, LLC; Hersha Statutory Trust I; and Hersha Statutory Trust II. The Company’s most significant asset is its investment in HHLP, and consequently, substantially all of the Company’s assets and liabilities represent those assets and liabilities of HHLP. Cindat Hersha Lessee JV, LLC is a VIE that leases hotel property. The entity is consolidated by the lessors, the primary beneficiary. Our maximum exposure to losses due to our investment in Cindat Hersha Owner JV, LLC is limited to our investment in the joint venture which is $0 as of December 31, 2020. South Bay Boston, LLC and SB Partners Three Lessee, LLC, are consolidated by the respective lessors, the primary beneficiaries. Hersha Holding RC Owner, LLC is the owner entity of the Ritz Carlton Coconut Grove and is a VIE. HHLP is considered the primary beneficiary of the VIE and consolidates the joint venture with the minority owner interest presented as part of noncontrolling interest within the Consolidated Balance Sheets as of December 31, 2020 and December 31, 2019. Hersha Statutory Trust I and Hersha Statutory Trust II are VIEs but HHLP is not the primary beneficiary in these entities. Accordingly, the accounts of Hersha Statutory Trust I and Hersha Statutory Trust II are not consolidated. |
Segment Reporting | Segment Reporting We allocate resources and assess operating performance based on individual hotels and consider each one of our hotels to be an operating segment. No operating segment, individually, meets the threshold for a reportable segment as defined within ASC Topic 280 – Segment Reporting, nor do they fully satisfy the requisite aggregation criteria therein. As a result, the Company does not present separate operating segment information within the Notes to the Consolidated Financial Statements. |
Use Of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Although we believe the assumptions and estimates we made are reasonable and appropriate, as discussed in the applicable sections throughout these Consolidated Financial Statements, different assumptions and estimates could materially impact our reported results. |
Investment In Hotel Properties | Investment in Hotel Properties The Company records the value of hotel properties acquired based on the fair value of the acquired real estate, furniture, fixtures and equipment, and intangible assets and the fair value of liabilities assumed, including debt. The fair value allocations were determined using Level 3 inputs, which are typically unobservable and are based on our own assumptions, as there is little, if any, related market activity. The Company’s investments in hotel properties are carried at cost and are depreciated using the straight-line method over the following estimated useful lives: Building and Improvements 7 to 40 years Furniture, Fixtures and Equipment 2 to 7 years Based on the occurrence of certain events or changes in circumstances, we review the recoverability of the property's carrying value. Such events or changes in circumstances include the following: • a significant decrease in the market price of a long-lived asset; • a significant adverse change in the extent or manner in which a long-lived asset is being used or in its physical condition; • a significant adverse change in legal factors or in the business climate that could affect the value of a long-lived asset, including an adverse action or assessment by a regulator; • an accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of a long-lived asset; • a current-period operating or cash flow loss combined with a history of operating or cash flow losses or a projection or forecast that demonstrates continuing losses associated with the use of a long-lived asset; and • a current expectation that, it is more likely that not that, a long-lived asset will be sold or otherwise disposed of significantly before the end of its previously estimated useful life. We review our portfolio on an ongoing basis to evaluate the existence of any of the aforementioned events or changes in circumstances that would require us to test for recoverability. In general, our review of recoverability is based on an estimate of the future undiscounted cash flows, excluding interest charges, expected to result from the property's use and eventual disposition. These estimates consider factors such as expected future operating income, market and other applicable trends and residual value expected, as well as the effects of hotel demand, competition and other factors. Other assumptions used in the review of recoverability include the holding period and expected terminal capitalization rate. If impairment exists due to the inability to recover the carrying value of a property, an impairment loss is recorded to the extent that the carrying value exceeds the estimated fair value of the property. We are required to make subjective assessments as to whether there are impairments in the values of our investments in hotel properties. We consider a hotel to be held for sale when management and our independent trustees commit to a plan to sell the property, the property is available for sale, management engages in an active program to locate a buyer for the property and it is probable the sale will be completed within a year of the initiation of the plan to sell. ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business offers guidance when evaluating whether a transaction will be accounted for as an acquisition of an asset or a business. We expect most of our hotel property acquisitions to qualify as asset acquisitions under the standard which requires capitalization of acquisition costs to the underlying assets. Acquisition-related cost, such as due diligence, legal and accounting fees, are not capitalized or applied in determining the fair value of the above acquired assets in the acquisition of a business. |
Investment In Unconsolidated Joint Ventures | Investment in Unconsolidated Joint Ventures If it is determined that we do not have a controlling interest in a joint venture, either through our financial interest in a VIE or our voting interest in a voting interest entity, the equity method of accounting is used. Under this method, the investment, originally recorded at cost, is adjusted to recognize our share of net earnings or losses of the affiliates as they occur rather than as dividends or other distributions are received, limited to the extent of our investment in, advances to and commitments for the investee. Pursuant to our joint venture agreements, allocations of profits and losses of some of our investments in unconsolidated joint ventures may be allocated disproportionately as compared to nominal ownership percentages due to specified preferred return rate thresholds. See Note 3 – Investment in Unconsolidated Joint Ventures for a more detailed explanation of the methodology used in determining the allocation of profits and losses within our joint ventures. The Company periodically reviews the carrying value of its investment in unconsolidated joint ventures to determine if circumstances indicate impairment to the carrying value of the investment that is other than temporary. When an impairment indicator is present, we will estimate the fair value of the investment. Our estimate of fair value takes into consideration factors such as expected future operating income, trends and prospects, as well as the effects of demand, competition and other factors. This determination requires significant estimates by management, including the expected cash flows to be generated by the assets owned and operated by the joint venture. To the extent impairment has occurred and the impairment is considered other than temporary, the loss will be measured as the excess of the carrying amount over the fair value of our investment in the unconsolidated joint venture. |
Cash And Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents represent cash on hand and in banks plus short-term investments with an initial maturity of three months or less when purchased. |
Escrow Deposits | Escrow Deposits Escrow deposits include reserves for debt service, real estate taxes, and insurance and reserves for furniture, fixtures, and equipment replacements, as required by certain mortgage debt agreement restrictions and provisions. |
Hotel Accounts Receivable | Hotel Accounts Receivable Hotel accounts receivable consists primarily of meeting and banquet room rental and hotel guest receivables. The Company generally does not require collateral. Ongoing credit evaluations are performed and potential losses from uncollectible accounts are written off against revenue when they are estimated to be uncollectible. |
Deferred Financing Costs | Deferred Financing Costs Deferred financing costs are recorded at cost and amortized over the terms of the related indebtedness using the effective interest method. Deferred financing costs associated with our line of credit are recorded within the Other Assets line item in our Consolidated Balance Sheets. Deferred financing costs associated with our term loans, mortgage debt, or subordinated notes are recorded as contra-liabilities within each respective line item on our Consolidated Balance Sheets. All amortization of deferred financing costs is presented with in the Interest Expense line on our Consolidated Statements of Operations. |
Due From/To Related Parties | Due from/to Related Parties Due from/to Related Parties represents current receivables and payables resulting from transactions related to hotel management and project management with affiliated entities. Due from related parties results primarily from advances of shared costs incurred. Due to affiliates results primarily from hotel management and project management fees incurred. Both due to and due from related parties are generally settled within a period not to exceed one year. |
Intangible Assets and Liabilities | Intangible Assets and Liabilities Intangible assets consist of leasehold intangibles for in-place leases at the time of hotel acquisition and deferred franchise fees. The leasehold intangibles are amortized over the remaining lease term. Deferred franchise fees are amortized using the straight-line method over the life of the franchise agreement. Intangible liabilities consist of leasehold intangibles for in-place leases at the time of hotel acquisition. The leasehold intangibles are amortized over the remaining lease term. Intangible liabilities are included in the accounts payable, accrued expenses and other liabilities on the Company’s consolidated balance sheets. |
Development Project Capitalization | Development Project Capitalization We have opportunistically engaged in the development and re-development of hotel assets. We capitalize expenditures related to hotel development projects and renovations, including indirect costs such as interest expense, real estate taxes and utilities related to hotel development projects and renovations. |
Noncontrolling Interest | Noncontrolling Interest Noncontrolling interest in the Partnership represents the limited partner’s proportionate share of the equity of the Partnership. Income (loss) is allocated to noncontrolling interest in accordance with the weighted average percentage ownership of the Partnership during the period. At the end of each reporting period the appropriate adjustments to the income (loss) are made based upon the weighted average percentage ownership of the Partnership during the period. Our ownership interest in the Partnership as of December 31, 2020, 2019 and 2018 was 87.8%, 90.0%, and 91.3%, respectively. We define a noncontrolling interest as the portion of equity in a subsidiary not attributable, directly or indirectly, to a parent. Such noncontrolling interests are reported on the consolidated balance sheets within equity, but separately from the shareholders’ equity. Revenues, expenses and net income or loss attributable to both the Company and noncontrolling interests are reported on the consolidated statements of operations. NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) In accordance with US GAAP, we classify securities that are redeemable for cash or other assets at the option of the holder, or not solely within the control of the issuer, outside of permanent equity in the consolidated balance sheet. The Company makes this determination based on terms in applicable agreements, specifically in relation to redemption provisions. Additionally, with respect to noncontrolling interests for which the Company has a choice to settle the contract by delivery of its own shares, the Company considers the guidance in US GAAP to evaluate whether the Company controls the actions or events necessary to issue the maximum number of common shares that could be required to be delivered at the time of settlement of the contract. |
Stock Based Compensation | Stock Based Compensation We measure the cost of employee service received in exchange for an award of equity instruments based on the grant-date fair value of the award. The compensation cost is amortized on a straight line basis over the period during which an employee is required to provide service in exchange for the award. The compensation cost related to performance awards that are contingent upon market-based criteria being met is recorded at the fair value of the award on the date of the grant and amortized over the performance period. |
Derivatives And Hedging | Derivatives and Hedging The Company’s objective in using derivatives is to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps and interest rate caps as part of its cash flow hedging strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts in exchange for fixed-rate payments over the life of the agreements without exchange of the underlying principal amount. Interest rate caps designated as cash flow hedges limit the Company’s exposure to increased cash payments due to increases in variable interest rates. |
Revenue Recognition | Revenue Recognition We recognize revenue for all consolidated hotels as hotel operating revenue when earned. Revenues are recorded net of any sales or occupancy tax collected from our guests. We participate in frequent guest programs sponsored by the brand owners of our hotels and we expense the charges associated with those programs, as incurred. Hotel operating revenues are disaggregated on the face of the consolidated statement of operations into the categories of rooms revenue, food and beverage revenue, and other to demonstrate how economic factors affect the nature, amount, timing, and uncertainty of revenue and cash flows. Room revenue is generated through contracts with customers whereby the customers agree to pay a daily rate for right to use a hotel room. The customer is provided the room and revenue is recognized daily at the contract rate. Payment from the customer is generally secured at the end of the contract upon check-out by the customer from our hotel. The Company records advanced deposits when a customer or group of customers provides a deposit for a future stay at our hotels. Advanced deposits for room revenue are included in the balance of Accounts Payable, Accrued Expenses and Other Liabilities on the consolidated balance sheet. Advanced deposits are recognized as revenue at the time of the guest's stay. The Company notes no significant judgements regarding the recognition of room revenue. Food and beverage revenue is generated through contracts with customers whereby the customer agrees to pay a contract rate for restaurant dining services or banquet services. The Company's contract performance obligations are fulfilled at the time that the meal is provided to the customer or when the banquet facilities and related dining amenities are provided to the customer. The Company recognizes food and beverage revenue upon the fulfillment of the contract with the customer. The Company records contract liabilities in the form of advanced deposits when a customer or group of customers provides a deposit for a future banquet event at our hotels. Advanced deposits for food and beverage revenue are included in the balance of Accounts Payable, Accrued Expenses and Other Liabilities on the consolidated balance sheet. Advanced deposits for banquet services are recognized as revenue following the completion of the banquet services. The Company notes no significant judgements regarding the recognition of food and beverage revenue. Other revenues consist primarily of fees earned for asset management services provided to hotels we own through unconsolidated joint ventures. Fees are earned as a percentage of hotel revenue and are recorded in the period earned to the extent of the noncontrolling interest ownership. |
Income Taxes | Income Taxes The Company has elected to be taxed as a REIT under applicable provisions of the Internal Revenue Code of 1986, as amended, or the Code, and intends to continue to qualify as a REIT. In general, under such provisions, a trust which has made the required election and, in the taxable year, meets certain requirements and distributes to its shareholders at least 90% of its REIT taxable income, determined without regard to the deduction for dividends paid and excluding net capital gains, will not be subject to federal income tax to the extent of the income which it distributes. Earnings and profits, which determine the taxability of dividends to shareholders, differ from net income reported for financial reporting purposes due primarily to differences in depreciation of hotel properties for federal income tax purposes. Deferred income taxes relate primarily to the TRS Lessee and are accounted for using the asset and liability method. Under this method, deferred income taxes are recognized for temporary differences between the financial reporting bases of assets and liabilities of the TRS Lessee and their respective tax bases and for their operating loss and tax credit carry forwards based on enacted tax rates expected to be in effect when such amounts are realized or settled. However, deferred tax assets are recognized only to the extent that it is more likely than not that they will be realized based on consideration of available evidence, including tax planning strategies and other factors. |
Reclassification | |
New Accounting Pronouncements | New Accounting Pronouncements In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting . As a result of identified structural risks of interbank offered rates, in particular, the LIBOR reference rate reform is underway to identify alternative reference rates that are more observable or transaction based. The update provides guidance in accounting for changes in contracts, hedging relationships, and other transactions as a result of this reference rate reform. The optional expedients and exceptions contained within this update, in general, only apply to contract amendments and modifications entered into prior to January 1, 2023. The provisions of this update that will most likely affect our financial reporting process relate to modifications of contracts with lenders and the related hedging contracts associated with each respective modified borrowing contract. In general, the provisions of the update would impact the Company by allowing, among other things, the following: • allowing modifications of debt contracts with lenders that fall under the guidance of ASC Topic 470 to be accounted for as a non-substantial modification and not be considered a debt extinguishment; • allowing a change to contractual terms of a hedging instrument in conjunction with reference rate reform to not require a dedesignation of the hedging relationship; and • allowing a change to the interest rate used for margining, discounting, or contract price alignment for a derivative that is a cash flow hedge to not be considered a change to the critical terms of the hedge and will not require a dedesignation of the hedging relationship. We have not entered into any contract modifications yet, as it directly relates to reference rate reform but we anticipate having to undertake such modifications in the future as a majority of our contracts with lenders and hedging counterparties are indexed to LIBOR. While we anticipate the impact of this update to be to the benefit of the Company, we are still evaluating the overall impact to the Company. NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) In June 2018, the FASB issued ASU No. 2018-07, Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting . The update will simplify several aspects of the accounting for nonemployee share-based payment transactions for acquiring goods and services from nonemployees. The amendments in this update affects all entities that enter into share-based payment transactions for acquiring goods and services from nonemployees. The provisions of the update were effective for the Company starting January 1, 2019. The adoption of this update did not have a material effect on our consolidated financial statements or the disclosures of share-based payments within Note 9 of these consolidated financial statements. In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. The update makes more financial and nonfinancial hedging strategies eligible for hedge accounting, changes how companies assess hedge effectiveness, and amends the presentation and disclosure requirements for hedging transactions. The Company adopted the provisions of this update effective January 1, 2019. The adoption of this update did not have a material effect on our consolidated financial statements or the disclosures related to fair value measurements with Note 8 of these consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), |
Organization And Summary Of S_3
Organization And Summary Of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Joint Venture Properties | The following table lists the properties owned by these joint ventures: Joint Venture Ownership Interest Property Location Lessee/Sublessee Consolidated Joint Ventures Hersha Holding RC Owner, LLC 85% Ritz-Carlton Coconut Grove, FL Hersha Holding RC Lessee, LLC Unconsolidated Joint Ventures Cindat Hersha Owner JV, LLC 31.2% Hampton Inn Herald Square, New York, NY Cindat Hersha Lessee JV, LLC Hampton Inn Chelsea, New York, NY Cindat Hersha Lessee JV, LLC Hampton Inn Times Square, New York, NY Cindat Hersha Lessee JV, LLC Holiday Inn Express Times Square, New York, NY Cindat Hersha Lessee JV, LLC Candlewood Suites Times Square, New York, NY Cindat Hersha Lessee JV, LLC Holiday Inn Wall Street, New York, NY Cindat Hersha Lessee JV, LLC Holiday Inn Express Water Street, New York, NY Cindat Hersha Lessee JV, LLC SB Partners, LLC 50% Holiday Inn Express South Boston, MA South Bay Sandeep, LLC Hiren Boston, LLC 50% Courtyard South Boston, MA South Bay Boston, LLC SB Partners Three, LLC 50% Home2 Suites South Boston, MA SB Partners Three Lessee, LLC |
Schedule Of Major Asset Depreciation | The Company’s investments in hotel properties are carried at cost and are depreciated using the straight-line method over the following estimated useful lives:Building and Improvements 7 to 40 years Furniture, Fixtures and Equipment 2 to 7 years |
Schedule Of Preferred Stock | Terms of the Series C, Series D and Series E Preferred Shares outstanding at December 31, 2020 and 2019 are summarized as follows: Dividend Per Share Shares Outstanding Year Ended December 31, (1) Series December 31, 2020 December 31, 2019 Aggregate Liquidation Preference Distribution Rate 2020 2019 Series C 3,000,000 3,000,000 $ 75,000 6.875 % $ — $ 1.7188 Series D 7,701,700 7,701,700 $ 192,543 6.500 % $ — 1.6250 Series E 4,001,514 4,001,514 $ 100,038 6.500 % $ — 1.6250 Total 14,703,214 14,703,214 |
Investment In Hotel Properties
Investment In Hotel Properties (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Investment In Hotel Properties | Investment in hotel properties consists of the following at December 31, 2020 and December 31, 2019: December 31, 2020 December 31, 2019 Land $ 488,463 $ 518,243 Buildings and Improvements 1,611,144 1,710,621 Furniture, Fixtures and Equipment 281,440 294,527 Construction in Progress 987 10,202 2,382,034 2,533,593 Less Accumulated Depreciation (597,196) (557,620) Total Investment in Hotel Properties $ 1,784,838 $ 1,975,973 |
Real Estate Assets Sold | During the year ended December 31, 2019, we had no hotel dispositions. During the years ended December 31, 2020, and 2018, we had the following hotel dispositions: Hotel Acquisition Disposition Consideration Gain (Loss) on Sheraton Wilmington South, DE 2010-12-21 2020-12-01 $ 19,500 $ 1,158 2020 Total $ 1,158 Hyatt House Gaithersburg, MD 2006-12-01 2018-02-16 $ 19,000 $ 2,441 Hampton Inn Pearl Street, NY 2014-06-01 2018-03-06 32,400 926 Residence Inn Tysons Corner, VA 2006-02-01 2018-10-31 15,700 781 2018 Total $ 4,148 |
Schedule of Assets Held for Sale | The table below shows the balances for the properties that were classified as assets held for sale as of December 31, 2020: December 31, 2020 Land $ 28,015 Buildings and Improvements 93,314 Furniture, Fixtures and Equipment 15,469 136,798 Less Accumulated Depreciation (40,578) Assets Held for Sale $ 96,220 |
Investment In Unconsolidated _2
Investment In Unconsolidated Joint Ventures (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment In Unconsolidated Joint Ventures | As of December 31, 2020 and December 31, 2019 our investment in unconsolidated joint ventures consisted of the following: Joint Venture Hotel Properties Percent Owned December 31, 2020 December 31, 2019 Cindat Hersha Owner JV, LLC Hilton and IHG branded hotels in NYC 31 % $ — $ — Hiren Boston, LLC Courtyard by Marriott, South Boston, MA 50 % 219 1,434 SB Partners, LLC Holiday Inn Express, South Boston, MA 50 % — — SB Partners Three, LLC Home2 Suites, South Boston, MA 50 % 6,414 7,012 $ 6,633 $ 8,446 |
Income Or Loss From Unconsolidated Joint Ventures | Income (loss) recognized during the years ended December 31, 2020, 2019 and 2018, for our investments in unconsolidated joint ventures is as follows: Year Ended December 31, 2020 2019 2018 Cindat Hersha Owner JV, LLC $ — $ — $ — Hiren Boston, LLC (1,741) 155 866 SB Partners, LLC (600) 626 218 SB Partners Three, LLC (597) (90) — (Loss) Income from Unconsolidated Joint Venture Investments $ (2,938) $ 691 $ 1,084 |
Summary Financial Information Related To Unconsolidated Joint Ventures | The following tables set forth the total assets, liabilities, equity and components of net income or loss, including the Company’s share, related to the unconsolidated joint ventures discussed above as of December 31, 2020 and December 31, 2019 and for the years ended December 31, 2020, 2019 and 2018. Balance Sheets December 31, 2020 December 31, 2019 Assets Investment in Hotel Properties, Net $ 581,452 $ 579,287 Other Assets 32,048 33,891 Total Assets $ 613,500 $ 613,178 Liabilities and Equity Mortgages and Notes Payable $ 452,284 $ 430,282 Other Liabilities 42,197 19,185 Equity: Hersha Hospitality Trust 5,699 9,588 Joint Venture Partners 113,452 154,998 Accumulated Other Comprehensive Loss (132) (875) Total Equity 119,019 163,711 Total Liabilities and Equity $ 613,500 $ 613,178 Statements of Operations Year Ended December 31, 2020 2019 2018 Room Revenue $ 25,011 $ 94,384 $ 98,123 Other Revenue 1,020 2,408 2,350 Operating Expenses (18,695) (46,175) (46,319) Lease Expense (770) (693) (658) Property Taxes and Insurance (12,906) (12,477) (11,882) General and Administrative (2,638) (5,783) (5,489) Depreciation and Amortization (16,200) (14,947) (13,403) Interest Expense (23,908) (28,072) (26,289) Loss on Debt Extinguishment — — (7,270) Net Loss $ (49,086) $ (11,355) $ (10,837) |
Reconciliation Of Share In Unconsolidated Joint Ventures' Equity In Investment In Unconsolidated Joint Ventures | The following table is a reconciliation of our share in the unconsolidated joint ventures’ equity to our investment in the unconsolidated joint ventures as presented on our balance sheets as of December 31, 2020 and December 31, 2019. December 31, 2020 December 31, 2019 Our share of equity recorded on the joint ventures' financial statements $ 5,699 $ 9,588 Adjustment to reconcile our share of equity recorded on the joint ventures' financial statements to our investment in unconsolidated joint ventures (1) 934 (1,142) Investment in Unconsolidated Joint Ventures $ 6,633 $ 8,446 (1) Adjustment to reconcile our share of equity recorded on the joint ventures' financial statements to our investment in unconsolidated joint ventures consists of the following: • the difference between our basis in the investment in joint ventures and the equity recorded on the joint ventures' financial statements; • accumulated amortization of our equity in joint ventures that reflects the difference in our portion of the fair value of joint ventures' assets on the date of our investment when compared to the carrying value of the assets recorded on the joint ventures’ financial statements (this excess or deficit investment is amortized over the life of the properties, and the amortization is included in Income (Loss) from Unconsolidated Joint Venture Investments on our consolidated statement of operations); and |
Other Assets And Deposits On _2
Other Assets And Deposits On Hotel Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Assets [Abstract] | |
Other Assets | Other Assets consisted of the following at December 31, 2020 and December 31, 2019: December 31, 2020 December 31, 2019 Derivative Asset $ — $ 2,514 Deferred Financing Costs 2,395 1,330 Prepaid Expenses 5,692 11,279 Investment in Statutory Trusts 1,548 1,548 Investment in Non-Hotel Property and Inventories 2,443 2,987 Deposits with Unaffiliated Third Parties 2,561 2,577 Deferred Tax Asset, Net of Valuation Allowance of $23,591 and $497, respectively — 11,390 Property Insurance Receivable — 1,788 Other 855 2,764 $ 15,494 $ 38,177 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Mortgages Payable | Mortgages payable at December 31, 2020 and December 31, 2019 consisted of the following: December 31, 2020 December 31, 2019 Mortgage Indebtedness $ 332,264 $ 333,948 Net Unamortized Premium 354 821 Net Unamortized Deferred Financing Costs (1,770) (2,489) Mortgages Payable $ 330,848 $ 332,280 The table below shows the interest expense incurred by the Company during the twelve months ended December 31, 2020, 2019, and 2018: Years Ended December 31, 2020 2019 2018 Mortgage Loans Payable 12,277 15,804 15,050 Interest Rate Swap Contracts on Mortgages 1,895 (453) * (66) * Unsecured Notes Payable 2,037 2,837 2,712 Credit Facility and Term Loans 21,927 33,745 31,189 Interest Rate Swap Contracts on Credit Facility and Term Loans 11,018 (2,630) * (2,839) * Deferred Financing Costs Amortization 3,551 2,241 2,278 Capitalized Interest — (74) * (662) * Other 574 735 829 Total Interest Expense $ 53,279 $ 52,205 $ 48,491 |
Summary Of Borrowing Base Assets | As of December 31, 2020, the following hotel properties were borrowing base assets: - Courtyard by Marriott Brookline, Brookline, MA - Hampton Inn, Washington, DC - Holiday Inn Express Cambridge, Cambridge, MA - Ritz-Carlton Georgetown, Washington, DC - The Envoy Boston Seaport, Boston, MA - Hilton Garden Inn, M Street, Washington, DC - The Boxer, Boston, MA - Residence Inn Miami Coconut Grove, Coconut Grove, FL - Hampton Inn Seaport, Seaport, New York, NY - The Winter Haven Hotel Miami Beach, Miami, FL - The Duane Street Hotel, New York, NY - The Blue Moon Hotel Miami Beach, Miami, FL - Holiday Inn Express Chelsea, 29th Street, New York, NY - Cadillac Hotel & Beach Club, Miami, FL - Gate Hotel JFK Airport, New York, NY - The Parrot Key Hotel & Villas, Key West, FL - Hilton Garden Inn JFK Airport, New York, NY - TownePlace Suites, Sunnyvale, CA - NU Hotel, Brooklyn, New York, NY - The Ambrose Hotel, Santa Monica, CA - Hyatt House White Plains, White Plains, NY - Courtyard by Marriott Downtown San Diego, San Diego, CA - Hampton Inn Center City/ Convention Center, Philadelphia, PA - The Pan Pacific Hotel Seattle, Seattle, WA - The Rittenhouse, Philadelphia, PA - Mystic Marriott Hotel & Spa, Groton, CT - Philadelphia Westin, Philadelphia, PA |
Summary Of Balances Outstanding And Interest Rate Spread | The following table summarizes the balances outstanding and interest rate spread for each borrowing: Outstanding Balance Borrowing Spread December 31, 2020 December 31, 2019 Line of Credit 1.50% to 2.25% $ 133,053 $ 48,000 Secured Term Loan: First Term Loan 1.45% to 2.20% 202,158 207,000 Second Term Loan 1.35% to 2.00% 292,983 300,000 Third Term Loan 1.45% to 2.20% 189,365 193,900 Deferred Loan Costs $ (2,762) (3,717) Total Secured Term Loan $ 681,744 $ 697,183 |
Aggregate Annual Principal Payments For Mortgages And Notes Payable | Aggregate annual principal payments for the Company’s credit facility and secured term loan, as amended, mortgages, and subordinated notes payable for the five years following December 31, 2020 and thereafter are as follows: Year Ending December 31, Amount 2021 $ 406,436 2022 248,599 2023 78,139 2024 378,817 2025 37,832 Thereafter 51,548 Net Unamortized Premium 354 $ 1,201,725 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Components of Lease Costs | The components of lease costs for the year ended December 31, 2020 and 2019 were as follows: Year Ended December 31, 2020 Ground Lease Office Lease Total Operating lease costs $ 4,153 $ 483 $ 4,636 Variable lease costs 139 253 392 Total lease costs $ 4,292 $ 736 $ 5,028 Year Ended December 31, 2019 Ground Lease Office Lease Total Operating lease costs $ 4,195 $ 483 $ 4,678 Variable lease costs 386 308 694 Total lease costs $ 4,581 $ 791 $ 5,372 Other information related to leases as of and for the year ended December 31, 2020 and 2019 is as follows: December 31, 2020 December 31, 2019 Cash paid from operating cash flows for operating leases $ 4,383 $ 4,851 Weighted average remaining lease term in years 64.2 64.2 Weighted average discount rate 7.86 % 7.86 % |
Future Minimum Lease Payments | Minimum lease payments against lease liabilities are as follows: Amount 2021 $ 5,001 2022 4,463 2023 4,445 2024 4,473 2025 4,515 Thereafter 284,478 Total undiscounted lease payments 307,375 Less imputed interest (253,523) Total lease liability $ 53,852 |
Fair Value Measurements And D_2
Fair Value Measurements And Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value Of Interest Rate Swaps And Caps | The table on the following page presents our derivative instruments as of December 31, 2020 and 2019. NOTE 8 – FAIR VALUE MEASUREMENTS AND DERIVATIVE INSTRUMENTS (CONTINUED) Estimated Fair Value Asset / (Liability) Balance Hedged Debt Type Strike Rate Index Effective Date Derivative Contract Maturity Date Notional Amount December 31, 2020 December 31, 2019 Term Loan Instruments: Secured Credit Facility Swap 1.341 % 1-Month LIBOR + 2.20% 2019-10-03 2021-08-02 150,000 (1,070) 539 Secured Credit Facility Swap 1.316 % 1-Month LIBOR + 2.20% 2019-09-03 2021-08-02 43,900 (307) 175 Secured Credit Facility Swap 1.824 % 1-Month LIBOR + 2.20% 2019-09-03 2022-08-10 103,500 (2,793) (718) Secured Credit Facility Swap 1.824 % 1-Month LIBOR + 2.20% 2019-09-03 2022-08-10 103,500 (2,793) (718) Secured Credit Facility Swap 1.460 % 1-Month LIBOR + 2.00% 2019-09-10 2024-09-10 300,000 (13,286) 1,776 Mortgages: Courtyard, LA Westside, Culver City, CA Swap 1.683 % 1-Month LIBOR + 2.75% 2017-08-01 2020-08-01 35,000 — (8) Annapolis Waterfront Hotel, MD Cap 3.350 % 1-Month LIBOR + 2.65% 2018-05-01 2021-05-01 28,000 — — Hyatt, Union Square, New York, NY Swap 1.870 % 1-Month LIBOR + 2.30% 2019-06-07 2023-06-07 56,000 (2,305) (556) Hilton Garden Inn Tribeca, New York, NY Swap 1.768 % 1-Month LIBOR + 2.25% 2019-07-25 2024-07-25 22,725 (1,222) (169) Hilton Garden Inn Tribeca, New York, NY Swap 1.768 % 1-Month LIBOR +2.25% 2019-07-25 2024-07-25 22,725 (1,222) (169) Hilton Garden Inn 52nd Street, New York, NY Swap 1.540 % 1-Month LIBOR + 2.30% 2019-12-04 2022-12-04 44,325 (1,186) 23 Courtyard, LA Westside, Culver City, CA Swap 0.495 % 1-Month LIBOR + 2.75% 2020-06-01 2021-08-01 35,000 (75) — $ (26,259) $ 175 |
Share Based Payments (Tables)
Share Based Payments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Summary Of Unvested Share Awards Issued To Executives | A summary of our share based compensation activity from January 1, 2018 to December 31, 2020 is as follows: LTIP Unit Awards Restricted Share Awards Share Awards Number of Units Weighted Average Grant Date Fair Value Number of Restricted Shares Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value Unvested Balance as of January 1, 2018 107,217 $ 19.63 86,833 $ 18.58 — Granted 589,106 17.91 76,314 19.56 34,752 $ 19.64 Vested (245,420) 18.59 (70,713) 18.38 (34,752) 19.64 Forfeited — N/A (575) 18.04 — N/A Unvested Balance as of December 31, 2018 450,903 17.95 91,859 19.56 — Granted 530,281 18.00 83,805 16.40 42,533 16.01 Vested (539,983) 17.97 (80,924) 19.11 (42,533) 16.01 Forfeited — N/A (2,638) 19.78 — N/A Unvested Balance as of December 31, 2019 441,201 17.99 92,102 17.07 — Granted 1,112,862 5.24 189,851 5.34 — N/A Vested (655,937) 12.56 (78,962) 12.49 — N/A Forfeited — N/A (113) 18.00 — N/A Unvested Balance as of December 31, 2020 898,126 6.15 202,878 7.87 — |
Schedule of Employee Service Share-based Compensation, Allocation of recognized Period Costs | The following table summarizes share based compensation expense and unearned compensation for the years ended December 31, 2020, 2019, and 2018 and as of December 31, 2020 and 2019: Share Based Unearned For the Year Ended As of 12/31/2020 12/31/2019 12/31/2018 12/31/2020 12/31/2019 Issued Awards LTIP Unit Awards 6,105 5,646 4,120 1,842 2,878 Restricted Share Awards 2,063 1,495 1,443 276 1,051 Share Awards — 680 680 — — Unissued Awards Market Based 1,320 1,467 1,120 1,933 2,739 Performance Based — 1,515 4,073 — — Total $ 9,488 $ 10,803 $ 11,436 $ 4,051 $ 6,668 |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award | The remaining unvested target units are expected to vest as follows: 2021 2022 2023 LTIP Unit Awards 898,126 — — Restricted Share Awards 191,177 8,170 3,531 1,089,303 8,170 3,531 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Reconciliation Of Earnings Per Share | The following table is a reconciliation of the income or loss (numerator) and the weighted average shares (denominator) used in the calculation of basic and diluted earnings per common share. The computation of basic and diluted earnings per share is presented below. Twelve Months Ended December 31, 2020 2019 2018 NUMERATOR: Basic and Diluted* Net (Loss) Income $ (189,260) $ (5,847) $ 8,365 Loss allocated to Noncontrolling Interests 22,915 2,178 1,625 Distributions to Preferred Shareholders (24,176) (24,174) (24,174) Dividends Paid on Unvested Restricted Shares and LTIP Units — (981) (740) Net Loss from Continuing Operations attributable to Common Shareholders $ (190,521) $ (28,824) $ (14,924) DENOMINATOR: Weighted average number of common shares - basic 38,613,563 38,907,894 39,383,763 Effect of dilutive securities: Restricted Stock Awards and LTIP Units (unvested) — — — Contingently Issued Shares and Units — — — Weighted average number of common shares - diluted 38,613,563 38,907,894 39,383,763 * Income (loss) allocated to noncontrolling interest in HHLP has been excluded from the numerator and Common Units and Vested LTIP Units have been omitted from the denominator for the purpose of computing diluted earnings per share since including these amounts in the numerator and denominator would have no impact. In addition, potentially dilutive common shares, if any, have been excluded from the denominator if they are anti-dilutive to income (loss) applicable to common shareholders. |
Cash Flow Disclosures And Non_2
Cash Flow Disclosures And Non Cash Investing And Financing Activities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
Non-cash Investing And Financing Activities | The following non-cash investing and financing activities occurred during 2020, 2019 and 2018: 2020 2019 2018 Common Shares issued as part of the Dividend Reinvestment Plan $ 14 $ 60 $ 77 Acquisition of hotel properties: Deposit paid in prior period towards acquisition which closed in current period — — 1,000 Conversion of note payable and accrued interest to Non-Controlling Interest — — 3,387 Conversion of Common Units to Common Shares — — 1,173 Issuance of share based payments 7,259 12,924 13,661 Accrued payables for fixed assets placed into service 658 2,506 2,912 Cumulative Effect on Equity from the Adoption of ASC Subtopic 610-20 — — 129,021 Adjustment to Record Non-Controlling Interest at Redemption Value (3,196) 488 2,708 Adjustment to Record Right of Use Asset & Lease Liability — 55,515 — |
Restrictions on Cash and Cash Equivalents | The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statements of cash flows for the year ended December 31, 2020, 2019 and 2018: 2020 2019 2018 Cash and cash equivalents $ 16,637 $ 27,012 $ 32,598 Escrowed cash 6,970 9,973 8,185 Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows $ 23,607 $ 36,985 $ 40,783 |
Schedule of Cash and Cash Equivalents | The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statements of cash flows for the year ended December 31, 2020, 2019 and 2018: 2020 2019 2018 Cash and cash equivalents $ 16,637 $ 27,012 $ 32,598 Escrowed cash 6,970 9,973 8,185 Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows $ 23,607 $ 36,985 $ 40,783 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Effective Income Tax Reconciliation | The provision for income taxes differs from the amount of income tax determined by applying the applicable statutory federal income tax rate (21%) to pretax income from continuing operations as a result of the following differences: For the year ended December 31, 2020 2019 2018 Statutory federal income tax provision $ (37,365) $ (1,208) $ 1,813 Adjustment for nontaxable income for Hersha Hospitality Trust 29,636 1,419 (1,269) State income taxes, net of federal income tax effect (2,720) 456 32 Non-deductible expenses, tax credits, and other, net (1,317) (575) (309) Changes in valuation allowance 23,095 — — Total income tax expense $ 11,329 $ 92 $ 267 |
Components Of The Company's Income Tax Expense (Benefit) | The components of the Company’s income tax expense (benefit) from continuing operations for the years ended December 31, 2020, 2019 and 2018 were as follows: For the year ended December 31, 2020 2019 2018 Income tax expense (benefit): Current: Federal $ (51) $ (60) $ (119) State (10) 464 530 Deferred: Federal 7,688 (302) 467 State 3,702 (10) (611) Total $ 11,329 $ 92 $ 267 |
Components Of Consolidated TRS's Deferred Tax Assets | The components of consolidated TRS’s net deferred tax asset as of December 31, 2020 and 2019 were as follows: As of December 31, 2020 2019 Deferred tax assets: Net operating loss carryforwards $ 21,569 $ 9,871 Accrued expenses and other 1,493 1,641 Tax credit carryforwards 355 415 Depreciation and amortization 174 (40) Total gross deferred tax assets 23,591 11,887 Valuation allowance (23,591) (497) Total Net deferred tax assets $ — $ 11,390 |
Taxability Of Common And Preferred Share Distributions | The following table sets forth certain per share information regarding the Company’s common and preferred share distributions for the years ended December 31, 2020, 2019 and 2018. 2020 2019 2018 Preferred Shares - 6.875% Series C Ordinary income 0.00 % 100.00 % 100.00 % Return of Capital 100.00 % 0.00 % 0.00 % Capital Gain Distribution 0.00 % 0.00 % 0.00 % Preferred Shares - 6.5% Series D Ordinary income 0.00 % 100.00 % 100.00 % Return of Capital 100.00 % 0.00 % 0.00 % Capital Gain Distribution 0.00 % 0.00 % 0.00 % Preferred Shares - 6.5% Series E Ordinary income 0.00 % 100.00 % 100.00 % Return of Capital 100.00 % 0.00 % 0.00 % Capital Gain Distribution 0.00 % 0.00 % 0.00 % Common Shares - Class A Ordinary income 0.00 % 33.03 % 37.91 % Return of Capital 100.00 % 66.97 % 62.09 % Capital Gain Distribution 0.00 % 0.00 % 0.00 % |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Selected Quarterly Financial Information [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | Year Ended December 31, 2020 First Quarter Second Quarter Third Quarter Fourth Quarter Hotel Operating Revenues: Room $ 71,083 $ 15,139 $ 27,546 $ 28,492 Food & Beverage 10,075 136 2,441 2,766 Other 8,780 2,137 3,734 4,114 Other Revenues 235 31 26 10,082 Hotel Operating Expenses: Room 19,092 3,622 7,436 8,637 Food & Beverage 10,621 721 2,344 2,513 Other 35,806 14,035 17,965 17,464 Other Expenses 54,106 54,471 53,534 59,443 (Loss) Income from Unconsolidated Joint Ventures (1,018) (502) (669) (749) Income (Loss) Before Income Taxes (30,470) (55,908) (48,201) (43,352) Income Tax (Expense) Benefit 4,498 (15,872) 28 17 Net Income (25,972) (71,780) (48,173) (43,335) Income (loss) Allocated to Noncontrolling Interests (2,897) (7,164) (5,032) (4,605) Income (loss) Allocated to Noncontrolling Interests - Consolidated Joint Venture — (3,196) — (21) Preferred Distributions 6,044 6,044 6,044 6,044 Net Income (Loss) applicable to Common Shareholders $ (29,119) $ (67,464) $ (49,185) $ (44,753) Earnings per share: Basic Net Income (Loss) applicable to Common Shareholders $ (0.76) $ (1.75) $ (1.27) $ (1.16) Diluted Net Income (Loss) applicable to Common Shareholders $ (0.76) $ (1.75) $ (1.27) $ (1.16) Weighted Average Common Shares Outstanding - Basic 38,564,099 38,609,922 38,639,048 38,640,604 Weighted Average Common Shares Outstanding - Diluted 38,564,099 38,609,922 38,639,048 38,640,604 Year Ended December 31, 2019 First Quarter Second Quarter Third Quarter Fourth Quarter Hotel Operating Revenues: Room $ 91,485 $ 118,980 $ 108,909 $ 105,324 Food & Beverage 14,228 18,253 15,870 17,028 Other 8,930 10,280 10,140 10,241 Other Revenues 274 46 142 124 Hotel Operating Expenses: Room 22,090 24,013 24,000 23,385 Food & Beverage 12,832 13,990 12,605 13,393 Other 40,189 44,607 43,476 42,856 Other Expenses 53,133 55,658 55,062 55,411 (Loss) Income from Unconsolidated Joint Ventures 181 299 38 173 (Loss) Income Before Income Taxes (13,146) 9,590 (44) (2,155) Income Tax Benefit 5,264 (4,031) 551 (1,876) Net (Loss) Income (7,882) 5,559 507 (4,031) (Loss) Income Allocated to Noncontrolling Interests (1,063) (49) (442) (812) (Loss) Income Allocated to Noncontrolling Interests - Consolidated Joint Ventures 140 (292) 340 — Preferred Distributions 6,044 6,043 6,044 6,043 Net (Loss) Income applicable to Common Shareholders $ (13,003) $ (143) $ (5,435) $ (9,262) Earnings per share: Basic Net (Loss) Income applicable to Common Shareholders $ (0.34) $ (0.01) $ (0.15) $ (0.24) Diluted Net (Loss) Income applicable to Common Shareholders $ (0.34) $ (0.01) $ (0.15) $ (0.24) Weighted Average Common Shares Outstanding - Basic 39,115,390 39,127,385 38,878,818 38,516,879 Weighted Average Common Shares Outstanding - Diluted 39,115,390 39,127,385 38,878,818 38,516,879 |
Organization And Summary Of S_4
Organization And Summary Of Significant Accounting Policies (Narrative) (Details) | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2020USD ($)sharesproperty | Sep. 30, 2020property | Jun. 30, 2020property | Mar. 31, 2020property | Dec. 31, 2020USD ($)sharesproperty | Dec. 31, 2019USD ($)shares | Dec. 31, 2018USD ($) | Feb. 28, 2021USD ($) | Feb. 17, 2021USD ($) | Jan. 01, 2019USD ($) | Apr. 02, 2018 | Dec. 31, 2017USD ($) | |
Subsidiary of Limited Liability Company or Limited Partnership | ||||||||||||
Number of hotel properties (in hotels) | property | 37 | 37 | ||||||||||
Related party dues, settlement, period | 1 year | |||||||||||
Weighted average ownership percentage in the Partnership (in hundredths) | 87.80% | 87.80% | 90.00% | 91.30% | ||||||||
Noncontrolling interest | $ 49,246,000 | $ 49,246,000 | $ 64,144,000 | |||||||||
Share conversion rate (share) | shares | 1 | 1 | ||||||||||
Net loss attributable to nonredeemable noncontrolling interest | $ 21,000 | 300,000 | $ 3,417,000 | |||||||||
Total Equity | $ 672,249,000 | 672,249,000 | $ 871,801,000 | |||||||||
Aggregate amount authorized to be repurchased | 50,000,000 | |||||||||||
Repurchase of common shares (in shares) | shares | 933,436 | |||||||||||
Repurchase of common shares | $ 14,194,000 | |||||||||||
Right of Use Assets | 44,126,000 | 44,126,000 | 45,384,000 | $ 55,515,000 | ||||||||
Lease Liabilities | 53,852,000 | 53,852,000 | 54,548,000 | $ 55,515,000 | ||||||||
Decrease in intangible assets | (1,739,000) | (1,739,000) | (2,137,000) | |||||||||
Decrease in accounts payable and accrued expenses | $ (58,453,000) | $ (58,453,000) | $ (47,626,000) | |||||||||
Weighted average remaining lease term in years | 64 years 2 months 12 days | 64 years 2 months 12 days | 64 years 2 months 12 days | 64 years 2 months 12 days | ||||||||
Subsequent Event | Payment in Kind (PIK) Note | ||||||||||||
Subsidiary of Limited Liability Company or Limited Partnership | ||||||||||||
Debt instrument, face amount | $ 150,000,000 | $ 150,000,000 | ||||||||||
Aggregate principal amount | $ 50,000,000 | |||||||||||
Subsequent Event | Unsecured Debt | ||||||||||||
Subsidiary of Limited Liability Company or Limited Partnership | ||||||||||||
Aggregate principal amount | $ 50,000,000 | |||||||||||
Hotel | ||||||||||||
Subsidiary of Limited Liability Company or Limited Partnership | ||||||||||||
Number of real estate properties closed during period (property) | property | 21 | |||||||||||
Number of real estate properties (property) | property | 3 | 48 | 3 | |||||||||
Number of real estate properties opened during period (property) | property | 2 | 8 | 5 | |||||||||
Number of real estate properties closed (property) | property | 6 | 6 | ||||||||||
Joint Venture | ||||||||||||
Subsidiary of Limited Liability Company or Limited Partnership | ||||||||||||
Number of hotel properties (in hotels) | property | 10 | 10 | ||||||||||
Consolidated Joint Venture | ||||||||||||
Subsidiary of Limited Liability Company or Limited Partnership | ||||||||||||
Number of hotel properties (in hotels) | property | 1 | 1 | ||||||||||
Noncontrolling Interests Common Units And LTIP Units | ||||||||||||
Subsidiary of Limited Liability Company or Limited Partnership | ||||||||||||
Nonredeemable common units outstanding (in shares) | shares | 5,392,808 | 5,392,808 | ||||||||||
Fair market value of nonredeemable common units | $ 42,549,000 | $ 42,549,000 | ||||||||||
Total Equity | 49,246,000 | 49,246,000 | $ 64,144,000 | 62,010,000 | $ 54,286,000 | |||||||
Consolidated Joint Ventures | ||||||||||||
Subsidiary of Limited Liability Company or Limited Partnership | ||||||||||||
Increase to noncontrolling joint venture interest | (3,196,000) | 488,000 | 2,708,000 | |||||||||
Total Equity | 0 | 0 | 3,196,000 | 2,708,000 | 0 | |||||||
Additional Paid-In Capital | ||||||||||||
Subsidiary of Limited Liability Company or Limited Partnership | ||||||||||||
Increase to noncontrolling joint venture interest | 3,196,000 | (488,000) | (2,708,000) | |||||||||
Total Equity | $ 1,150,985,000 | $ 1,150,985,000 | 1,144,808,000 | 1,155,776,000 | $ 1,164,946,000 | |||||||
Series C | ||||||||||||
Subsidiary of Limited Liability Company or Limited Partnership | ||||||||||||
Preferred stock, dividend rate, percentage (in hundredths) | 6.875% | 6.875% | ||||||||||
Series D | ||||||||||||
Subsidiary of Limited Liability Company or Limited Partnership | ||||||||||||
Preferred stock, dividend rate, percentage (in hundredths) | 6.50% | 6.50% | ||||||||||
Series E | ||||||||||||
Subsidiary of Limited Liability Company or Limited Partnership | ||||||||||||
Preferred stock, dividend rate, percentage (in hundredths) | 6.50% | 6.50% | ||||||||||
Hersha Holding RC Owner, LLC | ||||||||||||
Subsidiary of Limited Liability Company or Limited Partnership | ||||||||||||
Cumulative return on common equity interest | 70.00% | 70.00% | ||||||||||
Consolidated Joint Ventures | ||||||||||||
Subsidiary of Limited Liability Company or Limited Partnership | ||||||||||||
Noncontrolling owners ownership percentage | 15.00% | |||||||||||
Cumulative return on common equity interest | 30.00% | 30.00% | ||||||||||
Hersha Hospitality Limited Partnership | ||||||||||||
Subsidiary of Limited Liability Company or Limited Partnership | ||||||||||||
Various subsidiary limited partnership interest (in hundredths) | 99.00% | |||||||||||
Hersha Hospitality, LLC | ||||||||||||
Subsidiary of Limited Liability Company or Limited Partnership | ||||||||||||
General partnership interest (in hundredths) | 1.00% | |||||||||||
Cindat Hersha Owner JV, LLC | ||||||||||||
Subsidiary of Limited Liability Company or Limited Partnership | ||||||||||||
Maximum exposure to losses due to investment in joint venture | $ 0 | $ 0 | ||||||||||
Senior Common Equity Interest | ||||||||||||
Subsidiary of Limited Liability Company or Limited Partnership | ||||||||||||
Common equity interest, return | 12.00% | |||||||||||
Senior Common Equity Interest | Hersha Holding RC Owner, LLC | ||||||||||||
Subsidiary of Limited Liability Company or Limited Partnership | ||||||||||||
Common equity interest, return | 8.00% | |||||||||||
Cumulative return on common equity interest | 75.00% | 75.00% | ||||||||||
Senior Common Equity Interest | Consolidated Joint Ventures | ||||||||||||
Subsidiary of Limited Liability Company or Limited Partnership | ||||||||||||
Cumulative return on common equity interest | 25.00% | 25.00% | ||||||||||
Scenario, Plan | Junior Common Equity Interest | Consolidated Joint Ventures | ||||||||||||
Subsidiary of Limited Liability Company or Limited Partnership | ||||||||||||
Common equity interest, return | 8.00% | |||||||||||
Adjustment | ||||||||||||
Subsidiary of Limited Liability Company or Limited Partnership | ||||||||||||
Right of Use Assets | $ 19,627,000 | $ 11,050,000 | ||||||||||
Decrease in accounts payable and accrued expenses | 19,627,000 | |||||||||||
Adjustment | Additional Paid-In Capital | ||||||||||||
Subsidiary of Limited Liability Company or Limited Partnership | ||||||||||||
Increase to noncontrolling joint venture interest | $ 3,196,000 | $ (488,000) | ||||||||||
Market Rate | Adjustment | ||||||||||||
Subsidiary of Limited Liability Company or Limited Partnership | ||||||||||||
Decrease in intangible assets | $ 11,050,000 |
Organization And Summary Of S_5
Organization And Summary Of Significant Accounting Policies (Joint Venture Properties) (Details) - Hersha Hospitality Trust | 12 Months Ended |
Dec. 31, 2020 | |
Hersha Holding RC Owner, LLC | |
Subsidiary of Limited Liability Company or Limited Partnership | |
Ownership percentage (in hundredths) | 85.00% |
Cindat Hersha Owner JV, LLC | Cindat Hersha Owner JV, LLC | |
Subsidiary of Limited Liability Company or Limited Partnership | |
Ownership percentage (in hundredths) | 31.20% |
SB Partners, LLC | |
Subsidiary of Limited Liability Company or Limited Partnership | |
Ownership percentage (in hundredths) | 50.00% |
Hiren Boston, LLC | |
Subsidiary of Limited Liability Company or Limited Partnership | |
Ownership percentage (in hundredths) | 50.00% |
SB Partners Three, LLC | |
Subsidiary of Limited Liability Company or Limited Partnership | |
Ownership percentage (in hundredths) | 50.00% |
Organization And Summary Of S_6
Organization And Summary Of Significant Accounting Policies (Schedule Of Major Asset Depreciation) (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Minimum | Buildings and Improvements | |
Property, Plant and Equipment | |
Useful life of buildings and improvements | 7 years |
Minimum | Furniture, Fixtures and Equipment | |
Property, Plant and Equipment | |
Useful life of buildings and improvements | 2 years |
Maximum | Buildings and Improvements | |
Property, Plant and Equipment | |
Useful life of buildings and improvements | 40 years |
Maximum | Furniture, Fixtures and Equipment | |
Property, Plant and Equipment | |
Useful life of buildings and improvements | 7 years |
Organization And Summary Of S_7
Organization And Summary Of Significant Accounting Policies (Schedule Of Preferred Stock) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Class of Stock | |||
Preferred shares outstanding (in shares) | 14,703,214 | 14,703,214 | |
Series C | |||
Class of Stock | |||
Preferred shares outstanding (in shares) | 3,000,000 | 3,000,000 | |
Aggregate Liquidation Preference | $ 75,000 | ||
Distribution Rate | 6.875% | 6.875% | |
Preferred stock dividend (usd per share) | $ 0 | $ 1.7188 | |
Series D | |||
Class of Stock | |||
Preferred shares outstanding (in shares) | 7,701,700 | 7,701,700 | |
Aggregate Liquidation Preference | $ 192,543 | ||
Distribution Rate | 6.50% | 6.50% | |
Preferred stock dividend (usd per share) | $ 0 | $ 1.6250 | |
Series E | |||
Class of Stock | |||
Preferred shares outstanding (in shares) | 4,001,514 | 4,001,514 | |
Aggregate Liquidation Preference | $ 100,038 | ||
Distribution Rate | 6.50% | 6.50% | |
Preferred stock dividend (usd per share) | $ 0 | $ 1.6250 | |
Preferred stock cash | $ 24,176 |
Investment In Hotel Propertie_2
Investment In Hotel Properties (Investment In Hotel Properties) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Business Acquisition | ||
Total investment in hotel properties, gross | $ 2,382,034 | $ 2,533,593 |
Less Accumulated Depreciation | (597,196) | (557,620) |
Total Investment in Hotel Properties | 1,784,838 | 1,975,973 |
Land | ||
Business Acquisition | ||
Total investment in hotel properties, gross | 488,463 | 518,243 |
Buildings and Improvements | ||
Business Acquisition | ||
Total investment in hotel properties, gross | 1,611,144 | 1,710,621 |
Furniture, Fixtures and Equipment | ||
Business Acquisition | ||
Total investment in hotel properties, gross | 281,440 | 294,527 |
Construction in Progress | ||
Business Acquisition | ||
Total investment in hotel properties, gross | $ 987 | $ 10,202 |
Investment In Hotel Propertie_3
Investment In Hotel Properties (Narrative) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2021USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($)assetproperty | Dec. 31, 2019USD ($)property | Dec. 31, 2018USD ($)property | Sep. 30, 2017property | |
Business Acquisition | ||||||
Depreciation expense | $ 96,216 | $ 95,673 | $ 88,598 | |||
Number of real estate properties acquired (property) | property | 0 | 0 | ||||
Gain in excess of insurance recovery | $ 8,960 | $ (12) | 12,649 | |||
Asset impairment charge | $ 1,069 | $ 1,069 | $ 0 | 0 | ||
Assets Held-for-sale | ||||||
Business Acquisition | ||||||
Number of assets (assets) | asset | 3 | |||||
South Florida Properties | Hurricane Irma | ||||||
Business Acquisition | ||||||
Number of real estate properties (property) | property | 6 | |||||
Gain in excess of insurance recovery | $ 8,147 | $ 12,649 | ||||
Courtyard Cadillac Miami and the Parrot Key Hotel & Resort | Hurricane Irma | ||||||
Business Acquisition | ||||||
Number of real estate properties (property) | property | 2 | |||||
South Florida Properties, With Less Than Significant Damage | Hurricane Irma | ||||||
Business Acquisition | ||||||
Number of real estate properties (property) | property | 4 | |||||
Duane Street Hotel | Assets Held-for-sale | ||||||
Business Acquisition | ||||||
Reduction in purchase price | $ 2,000 | |||||
Capitol Hill Hotel, Washington, D.C. | Forecast | ||||||
Business Acquisition | ||||||
Consideration | $ 51,000 | |||||
Holiday Inn Express Cambridge Hotel | Forecast | ||||||
Business Acquisition | ||||||
Consideration | $ 32,000 |
Investment In Hotel Propertie_4
Investment In Hotel Properties (Real Estate Assets Sold) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | |||
Gain (Loss) on Disposition | $ 1,158 | $ 0 | $ 4,148 |
Sheraton Wilmington South, DE | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | |||
Consideration | 19,500 | ||
Gain (Loss) on Disposition | $ 1,158 | ||
Hyatt House Gaithersburg, MD | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | |||
Consideration | 19,000 | ||
Gain (Loss) on Disposition | 2,441 | ||
Hampton Inn Pearl Street, NY | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | |||
Consideration | 32,400 | ||
Gain (Loss) on Disposition | 926 | ||
Residence Inn Tysons Corner, VA | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | |||
Consideration | 15,700 | ||
Gain (Loss) on Disposition | $ 781 |
Investment In Hotel Propertie_5
Investment In Hotel Properties (Assets Held For Sale ) (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Long Lived Assets Held-for-sale | |
Less Accumulated Depreciation | $ (40,578) |
Assets Held for Sale | 96,220 |
Assets Held-for-sale | |
Long Lived Assets Held-for-sale | |
Assets Held for Sale, gross | 136,798 |
Land | Assets Held-for-sale | |
Long Lived Assets Held-for-sale | |
Assets Held for Sale, gross | 28,015 |
Buildings and Improvements | Assets Held-for-sale | |
Long Lived Assets Held-for-sale | |
Assets Held for Sale, gross | 93,314 |
Furniture, Fixtures and Equipment | Assets Held-for-sale | |
Long Lived Assets Held-for-sale | |
Assets Held for Sale, gross | $ 15,469 |
Investment In Unconsolidated _3
Investment In Unconsolidated Joint Ventures (Investment In Unconsolidated Joint Ventures) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Investments in Unconsolidated Joint Ventures | ||
Investment in unconsolidated joint ventures | $ 6,633 | $ 8,446 |
Cindat Hersha Owner JV, LLC | ||
Investments in Unconsolidated Joint Ventures | ||
Percent Owned | 31.00% | |
Cindat Hersha Owner JV, LLC | Hilton and IHG branded hotels in NYC | ||
Investments in Unconsolidated Joint Ventures | ||
Percent Owned | 31.00% | |
Investment in unconsolidated joint ventures | $ 0 | 0 |
Hiren Boston, LLC | Courtyard by Marriott, South Boston, MA | ||
Investments in Unconsolidated Joint Ventures | ||
Percent Owned | 50.00% | |
Investment in unconsolidated joint ventures | $ 219 | 1,434 |
SB Partners, LLC | Holiday Inn Express, South Boston, MA | ||
Investments in Unconsolidated Joint Ventures | ||
Percent Owned | 50.00% | |
Investment in unconsolidated joint ventures | $ 0 | 0 |
SB Partners Three, LLC | Home2 Suites, South Boston, MA | ||
Investments in Unconsolidated Joint Ventures | ||
Percent Owned | 50.00% | |
Investment in unconsolidated joint ventures | $ 6,414 | $ 7,012 |
Investment In Unconsolidated _4
Investment In Unconsolidated Joint Ventures (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Investments in Unconsolidated Joint Ventures | |||
Investment in unconsolidated joint ventures | $ 6,633 | $ 8,446 | |
Subsequent Event | Forecast | |||
Investments in Unconsolidated Joint Ventures | |||
Net proceeds from the sale of our interests | $ 24,000 | ||
Cindat Hersha Owner JV, LLC | |||
Investments in Unconsolidated Joint Ventures | |||
Percent owned (in hundredths) | 31.00% | ||
Cindat Capital Management Limited | Cindat Hersha Owner JV, LLC | |||
Investments in Unconsolidated Joint Ventures | |||
Common equity interest | $ 143,650 | ||
Common equity interest return | 8.00% | ||
Preferred joint venture partner, ownership percentage | 69.00% | ||
Annual reduction rate | 0.50% | ||
Annual reduction term | 4 years | ||
Cindat Capital Management Limited | Cindat Hersha Owner JV, LLC | Junior Common Equity Interest | |||
Investments in Unconsolidated Joint Ventures | |||
Common equity interest return | 8.00% | ||
Hersha Hospitality Limited Partnership | Cindat Hersha Owner JV, LLC | Junior Common Equity Interest | |||
Investments in Unconsolidated Joint Ventures | |||
Common equity interest | $ 64,357 |
Investment In Unconsolidated _5
Investment In Unconsolidated Joint Ventures (Income Or Loss From Unconsolidated Joint Ventures) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Investments in Unconsolidated Joint Ventures | |||||||||||
(Loss) Income from Unconsolidated Joint Venture Investments | $ (749) | $ (669) | $ (502) | $ (1,018) | $ 173 | $ 38 | $ 299 | $ 181 | $ (2,938) | $ 691 | $ 1,084 |
Cindat Hersha Owner JV, LLC | |||||||||||
Investments in Unconsolidated Joint Ventures | |||||||||||
(Loss) Income from Unconsolidated Joint Venture Investments | 0 | 0 | 0 | ||||||||
Hiren Boston, LLC | |||||||||||
Investments in Unconsolidated Joint Ventures | |||||||||||
(Loss) Income from Unconsolidated Joint Venture Investments | (1,741) | 155 | 866 | ||||||||
SB Partners, LLC | |||||||||||
Investments in Unconsolidated Joint Ventures | |||||||||||
(Loss) Income from Unconsolidated Joint Venture Investments | (600) | 626 | 218 | ||||||||
SB Partners Three, LLC | |||||||||||
Investments in Unconsolidated Joint Ventures | |||||||||||
(Loss) Income from Unconsolidated Joint Venture Investments | $ (597) | $ (90) | $ 0 |
Investment In Unconsolidated _6
Investment In Unconsolidated Joint Ventures (Summary Financial Information Related To Unconsolidated Joint Ventures) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Assets | |||||||||||
Investment in Hotel Properties, Net | $ 1,784,838 | $ 1,975,973 | $ 1,784,838 | $ 1,975,973 | |||||||
Other Assets | 15,494 | 38,177 | 15,494 | 38,177 | |||||||
Total Assets | 1,980,988 | 2,122,428 | 1,980,988 | 2,122,428 | |||||||
Liabilities and Equity | |||||||||||
Mortgages and Notes Payable | 330,848 | 332,280 | 330,848 | 332,280 | |||||||
Equity: | |||||||||||
Hersha Hospitality Trust | 623,003 | 807,657 | 623,003 | 807,657 | |||||||
Noncontrolling interest | 49,246 | 64,144 | 49,246 | 64,144 | |||||||
Accumulated Other Comprehensive (Loss) Income | (19,275) | 1,010 | (19,275) | 1,010 | |||||||
Total Liabilities, Redeemable Noncontrolling Interests, and Equity | 1,980,988 | 2,122,428 | 1,980,988 | 2,122,428 | |||||||
Statements of Operations | |||||||||||
Other Revenue | 217 | 292 | $ 1,385 | ||||||||
Lease Expense | (5,028) | (5,372) | |||||||||
Property Taxes and Insurance | (40,928) | (38,601) | (35,194) | ||||||||
General and Administrative | (20,078) | (26,431) | (26,881) | ||||||||
Depreciation and Amortization | (96,958) | (96,529) | (89,831) | ||||||||
Interest Expense | (53,279) | (52,205) | (48,491) | ||||||||
Loss on Debt Extinguishment | 0 | (280) | (22) | ||||||||
Net (Loss) Income | (43,335) | $ (48,173) | $ (71,780) | $ (25,972) | (4,031) | $ 507 | $ 5,559 | $ (7,882) | (189,260) | (5,847) | 8,365 |
Room | |||||||||||
Statements of Operations | |||||||||||
Hotel Operating Revenues | 28,492 | 27,546 | 15,139 | 71,083 | 105,324 | 108,909 | 118,980 | 91,485 | 142,260 | 424,698 | 397,907 |
Operating Expenses | (8,637) | $ (7,436) | $ (3,622) | $ (19,092) | (23,385) | $ (24,000) | $ (24,013) | $ (22,090) | (38,787) | (93,488) | (88,663) |
Equity Method Investment, Nonconsolidated Investee or Group of Investees | |||||||||||
Assets | |||||||||||
Investment in Hotel Properties, Net | 581,452 | 579,287 | 581,452 | 579,287 | |||||||
Other Assets | 32,048 | 33,891 | 32,048 | 33,891 | |||||||
Total Assets | 613,500 | 613,178 | 613,500 | 613,178 | |||||||
Liabilities and Equity | |||||||||||
Mortgages and Notes Payable | 452,284 | 430,282 | 452,284 | 430,282 | |||||||
Other Liabilities | 42,197 | 19,185 | 42,197 | 19,185 | |||||||
Equity: | |||||||||||
Hersha Hospitality Trust | 5,699 | 9,588 | 5,699 | 9,588 | |||||||
Noncontrolling interest | 113,452 | 154,998 | 113,452 | 154,998 | |||||||
Accumulated Other Comprehensive (Loss) Income | (132) | (875) | (132) | (875) | |||||||
Total Equity | 119,019 | 163,711 | 119,019 | 163,711 | |||||||
Total Liabilities, Redeemable Noncontrolling Interests, and Equity | $ 613,500 | $ 613,178 | 613,500 | 613,178 | |||||||
Statements of Operations | |||||||||||
Other Revenue | 1,020 | 2,408 | 2,350 | ||||||||
Operating Expenses | (18,695) | (46,175) | (46,319) | ||||||||
Lease Expense | (770) | (693) | (658) | ||||||||
Property Taxes and Insurance | (12,906) | (12,477) | (11,882) | ||||||||
General and Administrative | (2,638) | (5,783) | (5,489) | ||||||||
Depreciation and Amortization | (16,200) | (14,947) | (13,403) | ||||||||
Interest Expense | (23,908) | (28,072) | (26,289) | ||||||||
Loss on Debt Extinguishment | 0 | 0 | (7,270) | ||||||||
Net (Loss) Income | (49,086) | (11,355) | (10,837) | ||||||||
Equity Method Investment, Nonconsolidated Investee or Group of Investees | Room | |||||||||||
Statements of Operations | |||||||||||
Hotel Operating Revenues | $ 25,011 | $ 94,384 | $ 98,123 |
Investment In Unconsolidated _7
Investment In Unconsolidated Joint Ventures (Reconciliation Of Share In Unconsolidated Joint Ventures' Equity In Investment In Unconsolidated Joint Ventures) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Equity Method Investments and Joint Ventures [Abstract] | ||
Our share of equity recorded on the joint ventures' financial statements | $ 5,699 | $ 9,588 |
Adjustment to reconcile our share of equity recorded on the joint ventures' financial statements to our investment in unconsolidated joint ventures | 934 | (1,142) |
Investment in Unconsolidated Joint Ventures | $ 6,633 | $ 8,446 |
Other Assets And Deposits On _3
Other Assets And Deposits On Hotel Acquisitions (Other Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Other Assets [Abstract] | ||
Derivative Asset | $ 0 | $ 2,514 |
Deferred Financing Costs | 2,395 | 1,330 |
Prepaid Expenses | 5,692 | 11,279 |
Investment in Statutory Trusts | 1,548 | 1,548 |
Investment in Non-Hotel Property and Inventories | 2,443 | 2,987 |
Deposits with Unaffiliated Third Parties | 2,561 | 2,577 |
Deferred Tax Asset, Net of Valuation Allowance of $23,591 and $497, respectively | 0 | 11,390 |
Property Insurance Receivable | 0 | 1,788 |
Other | 855 | 2,764 |
Total Other Assets | 15,494 | 38,177 |
Valuation allowance | $ 23,591 | $ 497 |
Other Assets And Deposits On _4
Other Assets And Deposits On Hotel Acquisitions (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Other Assets [Abstract] | ||
Net deferred tax assets | $ 0 | $ 11,390 |
DEBT (Mortgages) (Details)
DEBT (Mortgages) (Details) $ in Thousands | Dec. 31, 2020USD ($)mortgage | Dec. 31, 2019USD ($) |
Secured Debt [Abstract] | ||
Net Unamortized Premium | $ 354 | |
Mortgages Payable | $ 1,201,725 | |
Mortgages with failed debt service coverage ratio's (mortgage) | mortgage | 4 | |
Mortgages with failed debt service coverage ratio's that lead to a cash management provision (mortgage) | mortgage | 3 | |
Mortgages | ||
Secured Debt [Abstract] | ||
Mortgage Indebtedness | $ 332,264 | $ 333,948 |
Net Unamortized Premium | 354 | 821 |
Net Unamortized Deferred Financing Costs | (1,770) | (2,489) |
Mortgages Payable | $ 330,848 | $ 332,280 |
Minimum | Mortgages | ||
Secured Debt [Abstract] | ||
Effective interest rate | 2.14% | |
Maximum | Mortgages | ||
Secured Debt [Abstract] | ||
Effective interest rate | 6.30% |
Debt (Credit Facilities Narrati
Debt (Credit Facilities Narrative) (Details) | 9 Months Ended | 12 Months Ended | |||||
Dec. 31, 2020USD ($)agreement | Dec. 31, 2020USD ($)agreement | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Feb. 17, 2021USD ($) | Apr. 02, 2020USD ($) | Oct. 07, 2016USD ($) | |
Line of Credit Facility [Abstract] | |||||||
Unsecured term loan | $ 681,744,000 | $ 681,744,000 | $ 697,183,000 | ||||
Proceeds from lines of credit | 88,000,000 | 38,000,000 | |||||
Repayment of line of credit | 2,947,000 | 0 | $ 6,100,000 | ||||
Line of credit | 133,053,000 | 133,053,000 | $ 48,000,000 | ||||
Line of credit facility covenant minimum tangible net worth | $ 1,119,500,000 | $ 1,119,500,000 | |||||
Line of credit facility covenant percentage of net cash proceeds of issuance and sales of equity interests (in hundredths) | 75.00% | ||||||
Line of credit facility covenant maximum annual distributions (in hundredths) | 95.00% | 95.00% | |||||
Line of credit facility covenant maximum leverage ratio (in hundredths) | 60.00% | 60.00% | |||||
Line of credit facility covenant maximum secured debt leverage ratio (in hundredths) | 45.00% | 45.00% | |||||
Subsequent Event | |||||||
Line of Credit Facility [Abstract] | |||||||
Line of credit facility covenant maximum leverage ratio (in hundredths) | 65.00% | ||||||
Revolving Credit Facility | |||||||
Line of Credit Facility [Abstract] | |||||||
Line of credit, weighted average interest rate (percentage) | 4.07% | 4.11% | 3.83% | ||||
Maximum | |||||||
Line of Credit Facility [Abstract] | |||||||
Line of credit facility covenant fixed charge coverage ratio | 1.50 | 1.50 | |||||
Maximum | Subsequent Event | |||||||
Line of Credit Facility [Abstract] | |||||||
Line of credit facility covenant fixed charge coverage ratio | 1.20 | ||||||
Secured Term Loan: | |||||||
Line of Credit Facility [Abstract] | |||||||
Number of unsecured credit agreements | agreement | 3 | 3 | |||||
Line of credit, current borrowing capacity | $ 934,506,000 | $ 934,506,000 | |||||
Unsecured term loan | 684,506,000 | 684,506,000 | $ 700,900,000 | ||||
Secured Term Loan: | Subsequent Event | |||||||
Line of Credit Facility [Abstract] | |||||||
Line of credit, additional borrowing | $ 174,729,000 | ||||||
Liquid asset requirement | 30,000,000 | ||||||
Fund raising requirements | 75,000,000 | ||||||
Proceeds from net sales of assets requirement | $ 150,000,000 | ||||||
Secured Term Loan: | Senior Credit Agreement | |||||||
Line of Credit Facility [Abstract] | |||||||
Line of credit, current borrowing capacity | 452,158,000 | 452,158,000 | |||||
Revolving line of credit, increase (decrease) In borrowing capacity | $ 100,000,000 | ||||||
Secured Term Loan: | $250 Million Term Loan (First Term Loan) | |||||||
Line of Credit Facility [Abstract] | |||||||
Line of credit, current borrowing capacity | 202,158,000 | 202,158,000 | |||||
Unsecured term loan | 202,158,000 | $ 202,158,000 | 207,000,000 | ||||
Renewal period of line of credit | 1 year | ||||||
Secured Term Loan: | $300 Million Senior Term Loan Agreement (Second Term Loan) | |||||||
Line of Credit Facility [Abstract] | |||||||
Unsecured term loan | 292,983,000 | $ 292,983,000 | 300,000,000 | ||||
Secured Term Loan: | $200 Million Senior Term Loan Agreement (Third Term Loan) | |||||||
Line of Credit Facility [Abstract] | |||||||
Unsecured term loan | 189,365,000 | $ 189,365,000 | 193,900,000 | $ 189,365,000 | |||
Line of Credit | |||||||
Line of Credit Facility [Abstract] | |||||||
Proceeds from lines of credit | 66,000 | ||||||
Repayment of line of credit | $ 2,947,000 | ||||||
Line of credit facility covenant maximum secured debt leverage ratio (in hundredths) | 60.00% | 60.00% | |||||
Line of Credit | $250 Million Senior Revolving Line Of Credit (Line of Credit) | |||||||
Line of Credit Facility [Abstract] | |||||||
Line of credit, current borrowing capacity | $ 250,000,000 | $ 250,000,000 | |||||
Line of credit | $ 133,053,000 | $ 133,053,000 | $ 48,000,000 |
Debt (Subordinated Notes Payabl
Debt (Subordinated Notes Payable Narrative) (Details) - Junior Subordinated Debt $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020USD ($)loan | Dec. 31, 2019USD ($) | Dec. 31, 2018 | |
Hersha Statutory Trust I and Hersha Statutory Trust II | |||
Subordinated Debt [Abstract] | |||
Number of debt instruments | loan | 2 | ||
Subordinated notes payable | $ 51,548 | ||
Number of business days prior to quarterly interest payments for resetting rates (days) | 2 days | ||
Deferred costs, net of accumulated amortization | $ 759 | $ 812 | |
Debt instrument, interest rate during period (in hundredths) | 3.95% | 5.50% | 5.23% |
Hersha Statutory Trust I | |||
Subordinated Debt [Abstract] | |||
Subordinated notes payable | $ 25,774 | ||
Debt instrument, basis spread on variable rate (in hundredths) | 3.00% | ||
Hersha Statutory Trust II | |||
Subordinated Debt [Abstract] | |||
Subordinated notes payable | $ 25,774 | ||
Debt instrument, basis spread on variable rate (in hundredths) | 3.00% |
Debt (Summary Of The Balances O
Debt (Summary Of The Balances Outstanding And Interest Rate Spread) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Oct. 07, 2016 | |
Debt Instrument | |||
Line of credit | $ 133,053,000 | $ 48,000,000 | |
Secured Term Loans, Net of Unamortized Deferred Financing Costs | 681,744,000 | 697,183,000 | |
Secured Term Loan: | |||
Debt Instrument | |||
Deferred Loan Costs | (2,762,000) | (3,717,000) | |
Secured Term Loans, Net of Unamortized Deferred Financing Costs | 684,506,000 | 700,900,000 | |
$250 Million Senior Revolving Line Of Credit (Line of Credit) | Line of Credit | |||
Debt Instrument | |||
Line of credit | 133,053,000 | 48,000,000 | |
$250 Million Term Loan (First Term Loan) | Secured Term Loan: | |||
Debt Instrument | |||
Secured Term Loans, Net of Unamortized Deferred Financing Costs | 202,158,000 | 207,000,000 | |
$300 Million Senior Term Loan Agreement (Second Term Loan) | Secured Term Loan: | |||
Debt Instrument | |||
Secured Term Loans, Net of Unamortized Deferred Financing Costs | 292,983,000 | 300,000,000 | |
$200 Million Senior Term Loan Agreement (Third Term Loan) | Secured Term Loan: | |||
Debt Instrument | |||
Secured Term Loans, Net of Unamortized Deferred Financing Costs | $ 189,365,000 | $ 193,900,000 | $ 189,365,000 |
Minimum | $250 Million Senior Revolving Line Of Credit (Line of Credit) | Line of Credit | |||
Debt Instrument | |||
Basis spread on variable rate (in hundredths) | 1.50% | ||
Minimum | $250 Million Term Loan (First Term Loan) | Secured Term Loan: | |||
Debt Instrument | |||
Basis spread on variable rate (in hundredths) | 1.45% | ||
Minimum | $300 Million Senior Term Loan Agreement (Second Term Loan) | Secured Term Loan: | |||
Debt Instrument | |||
Basis spread on variable rate (in hundredths) | 1.35% | ||
Minimum | $200 Million Senior Term Loan Agreement (Third Term Loan) | Secured Term Loan: | |||
Debt Instrument | |||
Basis spread on variable rate (in hundredths) | 1.45% | ||
Maximum | $250 Million Senior Revolving Line Of Credit (Line of Credit) | Line of Credit | |||
Debt Instrument | |||
Basis spread on variable rate (in hundredths) | 2.25% | ||
Maximum | $250 Million Term Loan (First Term Loan) | Secured Term Loan: | |||
Debt Instrument | |||
Basis spread on variable rate (in hundredths) | 2.20% | ||
Maximum | $300 Million Senior Term Loan Agreement (Second Term Loan) | Secured Term Loan: | |||
Debt Instrument | |||
Basis spread on variable rate (in hundredths) | 2.00% | ||
Maximum | $200 Million Senior Term Loan Agreement (Third Term Loan) | Secured Term Loan: | |||
Debt Instrument | |||
Basis spread on variable rate (in hundredths) | 2.20% |
Debt (Aggregate Annual Principa
Debt (Aggregate Annual Principal Payments For Mortgages And Notes Payable) (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Debt Disclosure [Abstract] | |
2021 | $ 406,436 |
2022 | 248,599 |
2023 | 78,139 |
2024 | 378,817 |
2025 | 37,832 |
Thereafter | 51,548 |
Net Unamortized Premium | 354 |
Mortgages Payable | $ 1,201,725 |
Debt (Junior Notes Payable) (De
Debt (Junior Notes Payable) (Details) - Subsequent Event - Payment in Kind (PIK) Note - USD ($) | Feb. 17, 2021 | Feb. 28, 2021 |
Debt Instrument | ||
Debt instrument, face amount | $ 150,000,000 | $ 150,000,000 |
Debt instrument, interest rate, percentage | 9.50% | |
Aggregate principal amount | $ 50,000,000 | |
Debt instrument, minimum installments | $ 25,000,000 | |
Discretionary interest rate, stated percentage | 4.75% | |
PIK, stated percentage | 4.75% |
DEBT (Schedule of Interest Expe
DEBT (Schedule of Interest Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument | |||
Amortization of deferred costs | $ 3,551 | $ 2,241 | $ 2,278 |
Other | 574 | 735 | 829 |
Total Interest Expense | 53,279 | 52,205 | 48,491 |
Line of Credit | |||
Debt Instrument | |||
Interest expense | 21,927 | 33,745 | 31,189 |
Interest Rate Swap | |||
Debt Instrument | |||
Increase (Decrease) Interest Expense Debt | (74) | (662) | |
Interest Rate Swap | Line of Credit | |||
Debt Instrument | |||
Interest expense | 11,018 | ||
Increase (Decrease) Interest Expense Debt | (2,630) | (2,839) | |
Mortgages | |||
Debt Instrument | |||
Interest expense | 12,277 | 15,804 | 15,050 |
Mortgages | Hersha Statutory Trust I and Hersha Statutory Trust II | |||
Debt Instrument | |||
Interest expense | 2,037 | 2,837 | 2,712 |
Mortgages | Interest Rate Swap | |||
Debt Instrument | |||
Interest expense | 1,895 | ||
Increase (Decrease) Interest Expense Debt | $ (453) | $ (66) | |
Capitalized interest | $ 0 |
Debt (New Debt_Refinance Narrat
Debt (New Debt/Refinance Narrative) (Details) - USD ($) | 12 Months Ended | |||||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 04, 2019 | Sep. 30, 2019 | Sep. 10, 2019 | Jul. 25, 2019 | Jun. 07, 2019 | |
Extinguishment of Debt Disclosures [Abstract] | ||||||||
Interest expense | $ 53,279,000 | $ 52,205,000 | $ 48,491,000 | |||||
Hilton Garden Inn, 52nd Street, NY | ||||||||
Extinguishment of Debt Disclosures [Abstract] | ||||||||
Debt instrument, face amount | $ 44,325,000 | |||||||
Effective interest rate | 3.84% | |||||||
Senior Unsecured Term Loan Agreement | ||||||||
Extinguishment of Debt Disclosures [Abstract] | ||||||||
Debt instrument, face amount | $ 300,000,000 | |||||||
Credit Facility And Term Loans | ||||||||
Extinguishment of Debt Disclosures [Abstract] | ||||||||
Debt instrument, face amount | $ 700,900,000 | |||||||
Hilton Garden Inn Tribeca, New York, NY | ||||||||
Extinguishment of Debt Disclosures [Abstract] | ||||||||
Debt instrument, face amount | $ 45,000,000 | |||||||
Hyatt Union Square, New York, NY | ||||||||
Extinguishment of Debt Disclosures [Abstract] | ||||||||
Debt instrument, face amount | $ 56,000,000 | |||||||
Interest Rate Swap | Hilton Garden Inn Tribeca, New York, NY | ||||||||
Extinguishment of Debt Disclosures [Abstract] | ||||||||
Effective interest rate | 4.02% |
Leases (Narrative) (Details)
Leases (Narrative) (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020USD ($)lease | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Jan. 01, 2019USD ($) | |
Lessee, Lease, Description | ||||
Right of Use Assets | $ 44,126 | $ 45,384 | $ 55,515 | |
Lease Liabilities | 53,852 | 54,548 | $ 55,515 | |
Rent expense | $ 4,301 | $ 4,581 | $ 4,228 | |
Land | ||||
Lessee, Lease, Description | ||||
Number of leasing arrangement (property) | lease | 5 | |||
Rent expense | 4,228 | |||
Building | ||||
Lessee, Lease, Description | ||||
Number of leasing arrangement (property) | lease | 2 | |||
Rent expense | $ 785 |
Leases (Components of Lease Cos
Leases (Components of Lease Costs) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Lessee, Lease, Description | ||
Operating lease costs | $ 4,636 | $ 4,678 |
Variable lease costs | 392 | 694 |
Total lease costs | 5,028 | 5,372 |
Land | ||
Lessee, Lease, Description | ||
Operating lease costs | 4,153 | 4,195 |
Variable lease costs | 139 | 386 |
Total lease costs | 4,292 | 4,581 |
Building | ||
Lessee, Lease, Description | ||
Operating lease costs | 483 | 483 |
Variable lease costs | 253 | 308 |
Total lease costs | $ 736 | $ 791 |
Leases (Other information) (Det
Leases (Other information) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 | |
Leases [Abstract] | |||
Cash paid from operating cash flows for operating leases | $ 4,383 | $ 4,851 | |
Weighted average remaining lease term in years | 64 years 2 months 12 days | 64 years 2 months 12 days | 64 years 2 months 12 days |
Weighted average discount rate | 7.86% | 7.86% |
Leases (Minimum lease payments
Leases (Minimum lease payments against lease liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 |
Amount | |||
2021 | $ 5,001 | ||
2022 | 4,463 | ||
2023 | 4,445 | ||
2024 | 4,473 | ||
2025 | 4,515 | ||
Thereafter | 284,478 | ||
Total undiscounted lease payments | 307,375 | ||
Less imputed interest | (253,523) | ||
Lease Liabilities | $ 53,852 | $ 54,548 | $ 55,515 |
Commitments And Contingencies_2
Commitments And Contingencies And Related Party Transactions (Narrative) (Details) | 12 Months Ended | ||||
Dec. 31, 2020USD ($)property | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Apr. 01, 2020USD ($) | Mar. 31, 2020property | |
Management Agreements | |||||
Term of management agreements with HHMLP | 5 years | ||||
Base management fee as percentage of gross revenues (in hundredths) | 3.00% | ||||
Base management fees incurred | $ 4,795,000 | $ 14,123,000 | $ 13,309,000 | ||
Incentive management fees incurred | 0 | 161,000 | 98,000 | ||
Accounting and Information Technology Fees | |||||
Accounting fees | 1,298,000 | 1,261,000 | 1,235,000 | ||
Information technology fees | $ 419,000 | 402,000 | 402,000 | ||
Capital Expenditure Fees | |||||
Fee on all capital expenditures and pending renovation projects at the properties (in hundredths) | 5.00% | ||||
Fees incurred on capital expenditures | $ 1,148,000 | 2,525,000 | 2,511,000 | ||
Acquisitions From Affiliates | |||||
Period of right of first refusal per option agreement with officers and affiliated trustees after termination | 1 year | ||||
Hotel Supplies | |||||
Hotel supplies | $ 82,000 | 307,000 | 470,000 | ||
Charges for capital expenditure purchases | 1,212,000 | 12,721,000 | 2,258,000 | ||
Lessee Disclosure | |||||
Rent forgiven | $ 103,000 | ||||
Due from Related Parties, Unclassified | |||||
Due from related parties | 2,641,000 | 6,113,000 | |||
Due to Related Parties | |||||
Due to related parties | $ 0 | 0 | |||
Hotel | |||||
Lessee Disclosure | |||||
Number of real estate properties (property) | property | 3 | 48 | |||
Minimum | |||||
Franchise Agreements | |||||
Terms of franchise agreements, minimum | 10 years | ||||
Accounting and Information Technology Fees | |||||
Monthly fees for accounting services per property for hotels managed by HHMLP | $ 2,000 | ||||
Monthly information technology fees per property for hotels managed by HHMLP | $ 1,000 | ||||
Maximum | |||||
Franchise Agreements | |||||
Terms of franchise agreements, minimum | 20 years | ||||
Accounting and Information Technology Fees | |||||
Monthly fees for accounting services per property for hotels managed by HHMLP | $ 3,000 | ||||
Monthly information technology fees per property for hotels managed by HHMLP | 2,000 | ||||
Franchise | |||||
Franchise Agreements | |||||
Franchise fee expense | 7,237,000 | 23,389,000 | 22,802,000 | ||
Executive Officer | |||||
Insurance Services | |||||
Related party transaction, purchases from related party | $ 6,968,000 | 5,934,000 | $ 4,799,000 | ||
Lessee Disclosure | |||||
Ownership percentage in related party | 70.00% | ||||
Revenue from related parties | $ 0 | $ 323,000 | |||
Executive Officer | Lease Agreements | |||||
Lessee Disclosure | |||||
Term of lease | 5 years |
Fair Value Measurements And D_3
Fair Value Measurements And Derivative Instruments (Fair Value Of Interest Rate Swaps And Caps) (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Derivatives, Fair Value | ||
Estimated Fair Value | $ (26,259,000) | $ 175,000 |
Interest Rate Swap | Secured Credit Facility October 3, 2019 | ||
Derivatives, Fair Value | ||
Strike Rate | 1.341% | |
Index: Basis spread on variable rate basis (in hundredths) | 2.20% | |
Notional Amount | $ 150,000,000 | |
Estimated Fair Value | $ (1,070,000) | 539,000 |
Interest Rate Swap II | Secured Credit Facility September 3, 2019 | ||
Derivatives, Fair Value | ||
Strike Rate | 1.316% | |
Index: Basis spread on variable rate basis (in hundredths) | 2.20% | |
Notional Amount | $ 43,900,000 | |
Estimated Fair Value | $ (307,000) | 175,000 |
Interest Rate Swap III | Secured Credit Facility September 3, 2019 | ||
Derivatives, Fair Value | ||
Strike Rate | 1.824% | |
Index: Basis spread on variable rate basis (in hundredths) | 2.20% | |
Notional Amount | $ 103,500,000 | |
Estimated Fair Value | $ (2,793,000) | (718,000) |
Interest Rate Swap IV | Secured Credit Facility September 3, 2019 | ||
Derivatives, Fair Value | ||
Strike Rate | 1.824% | |
Index: Basis spread on variable rate basis (in hundredths) | 2.20% | |
Notional Amount | $ 103,500,000 | |
Estimated Fair Value | $ (2,793,000) | (718,000) |
Interest Rate Swap V | Secured Credit Facility September 10, 2019 | ||
Derivatives, Fair Value | ||
Strike Rate | 1.46% | |
Index: Basis spread on variable rate basis (in hundredths) | 2.00% | |
Notional Amount | $ 300,000,000 | |
Estimated Fair Value | $ (13,286,000) | 1,776,000 |
Interest Rate Swap VI | Courtyard, LA Westside, Culver City, LA | ||
Derivatives, Fair Value | ||
Strike Rate | 1.683% | |
Index: Basis spread on variable rate basis (in hundredths) | 2.75% | |
Notional Amount | $ 35,000,000 | |
Estimated Fair Value | $ 0 | (8,000) |
Interest Rate Cap | Annapolis Waterfront Hotel, MD | ||
Derivatives, Fair Value | ||
Strike Rate | 3.35% | |
Index: Basis spread on variable rate basis (in hundredths) | 2.65% | |
Notional Amount | $ 28,000,000 | |
Estimated Fair Value | $ 0 | 0 |
Interest Rate Swap VII | Hyatt Union Square, New York, NY | ||
Derivatives, Fair Value | ||
Strike Rate | 1.87% | |
Index: Basis spread on variable rate basis (in hundredths) | 2.30% | |
Notional Amount | $ 56,000,000 | |
Estimated Fair Value | $ (2,305,000) | (556,000) |
Interest Rate Swap IIX | Hilton Garden Inn Tribeca, New York, NY | ||
Derivatives, Fair Value | ||
Strike Rate | 1.768% | |
Index: Basis spread on variable rate basis (in hundredths) | 2.25% | |
Notional Amount | $ 22,725,000 | |
Estimated Fair Value | $ (1,222,000) | (169,000) |
Interest Rate Swap IX | Hilton Garden Inn Tribeca, New York, NY | ||
Derivatives, Fair Value | ||
Strike Rate | 1.768% | |
Index: Basis spread on variable rate basis (in hundredths) | 2.25% | |
Notional Amount | $ 22,725,000 | |
Estimated Fair Value | $ (1,222,000) | (169,000) |
Interest Rate Swap X | Hilton Garden Inn 52nd Street, New York, NY | ||
Derivatives, Fair Value | ||
Strike Rate | 1.54% | |
Index: Basis spread on variable rate basis (in hundredths) | 2.30% | |
Notional Amount | $ 44,325,000 | |
Estimated Fair Value | $ (1,186,000) | 23,000 |
Interest Rate Swap XI | Courtyard La Westside Culver City Ca | ||
Derivatives, Fair Value | ||
Strike Rate | 0.495% | |
Index: Basis spread on variable rate basis (in hundredths) | 2.75% | |
Notional Amount | $ 35,000,000 | |
Estimated Fair Value | $ (75,000) | $ 0 |
Fair Value Measurements And D_4
Fair Value Measurements And Derivative Instruments (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivatives, Fair Value | |||
Other comprehensive (loss) gain from cash flow hedge | $ 22,348 | $ (3,495) | $ 516 |
Unrealized gain (loss) reclassified from accumulated other comprehensive income to interest expense | 4,083 | 1,007 | $ 2,827 |
Loss to be reclassified to interest expense during next 12 months | 11,508 | ||
Estimate of Fair Value Measurement | |||
Derivatives, Fair Value | |||
Estimated fair value of debt | 1,176,625 | 1,098,082 | |
Reported Value Measurement | |||
Derivatives, Fair Value | |||
Estimated fair value of debt | $ 1,196,434 | $ 1,128,199 |
Share Based Payments (Narrative
Share Based Payments (Narrative) (Details) | Aug. 03, 2020 | Dec. 31, 2020 |
Trustees | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Vesting Period | 3 years | |
Board fee compensation percentage over potential cash pay-out (percent) | 25.00% | |
Employees And Non-employee | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Vesting Period | 1 year | |
Employees And Non-employee | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Vesting Period | 4 years | |
LTIP Unit Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Unrecognized compensation expense period | 1 year 6 months | |
Restricted Share Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Unrecognized compensation expense period | 1 year 2 months 12 days | |
Short Term Incentive Program | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Awards earned, percent in cash | 50.00% | |
Awards earned, percent in equity awards | 50.00% | |
Vesting Period | 2 years | |
Multi-Year LTIP | 2020 | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Vesting Period | 3 years | |
Shareholders return as percentage of award for achievement (in hundredths) | 37.50% | |
Multi-Year LTIP | 2021 | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Shareholders return as percentage of award for achievement (in hundredths) | 37.50% | |
Multi-Year LTIP | 2022 | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Shareholders return as percentage of award for achievement (in hundredths) | 25.00% |
Share Based Payments (Summary O
Share Based Payments (Summary Of Share Based Compensation Activity) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
LTIP Unit Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares | |||
Unvested balance at beginning of the period (in shares) | 441,201 | 450,903 | 107,217 |
Granted (in shares) | 1,112,862 | 530,281 | 589,106 |
Vested (in shares) | (655,937) | (539,983) | (245,420) |
Forfeited (in shares) | 0 | 0 | 0 |
Unvested balance at end of the period (in shares) | 898,126 | 441,201 | 450,903 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | |||
Weighted average grant date fair value, unvested balance at the beginning of the period (in dollars per share) | $ 17.99 | $ 17.95 | $ 19.63 |
Weighted average grant date fair value, unvested balance, granted (in dollars per share) | 5.24 | 18 | 17.91 |
Weighted average grant date fair value, unvested balance, vested (in dollars per share) | 12.56 | 17.97 | 18.59 |
Weighted average grant date fair value, unvested balance at the end of the period (in dollars per share) | $ 6.15 | $ 17.99 | $ 17.95 |
Restricted Share Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares | |||
Unvested balance at beginning of the period (in shares) | 92,102 | 91,859 | 86,833 |
Granted (in shares) | 189,851 | 83,805 | 76,314 |
Vested (in shares) | (78,962) | (80,924) | (70,713) |
Forfeited (in shares) | (113) | (2,638) | (575) |
Unvested balance at end of the period (in shares) | 202,878 | 92,102 | 91,859 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | |||
Weighted average grant date fair value, unvested balance at the beginning of the period (in dollars per share) | $ 17.07 | $ 19.56 | $ 18.58 |
Weighted average grant date fair value, unvested balance, granted (in dollars per share) | 5.34 | 16.40 | 19.56 |
Weighted average grant date fair value, unvested balance, vested (in dollars per share) | 12.49 | 19.11 | 18.38 |
Weighted average grant date fair value, unvested balance, forfeited (in dollars per share) | 18 | 19.78 | 18.04 |
Weighted average grant date fair value, unvested balance at the end of the period (in dollars per share) | $ 7.87 | $ 17.07 | $ 19.56 |
Share Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares | |||
Unvested balance at beginning of the period (in shares) | 0 | 0 | 0 |
Granted (in shares) | 0 | 42,533 | 34,752 |
Vested (in shares) | 0 | (42,533) | (34,752) |
Forfeited (in shares) | 0 | 0 | 0 |
Unvested balance at end of the period (in shares) | 0 | 0 | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | |||
Weighted average grant date fair value, unvested balance, granted (in dollars per share) | $ 16.01 | $ 19.64 | |
Weighted average grant date fair value, unvested balance, vested (in dollars per share) | $ 16.01 | $ 19.64 |
Share Based Payments (Schedule
Share Based Payments (Schedule of Employee Service Share-based Compensation, Allocation of recognized Period Costs) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Share Based Compensation Expense | $ 9,488 | $ 10,803 | $ 11,436 |
Unearned Compensation | 4,051 | 6,668 | |
LTIP Unit Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Share Based Compensation Expense | 6,105 | 5,646 | 4,120 |
Unearned Compensation | 1,842 | 2,878 | |
Restricted Share Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Share Based Compensation Expense | 2,063 | 1,495 | 1,443 |
Unearned Compensation | 276 | 1,051 | |
Share Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Share Based Compensation Expense | 0 | 680 | 680 |
Unearned Compensation | 0 | 0 | |
Market Based | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Share Based Compensation Expense | 1,320 | 1,467 | 1,120 |
Unearned Compensation | 1,933 | 2,739 | |
Performance Based | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Share Based Compensation Expense | 0 | 1,515 | $ 4,073 |
Unearned Compensation | $ 0 | $ 0 |
Share Based Payments (Remaining
Share Based Payments (Remaining Unvested Target Units Expected to Vest) (Details) | Dec. 31, 2020shares |
2021 | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Remaining unvested target units, expected to vest | 1,089,303 |
2022 | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Remaining unvested target units, expected to vest | 8,170 |
2023 | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Remaining unvested target units, expected to vest | 3,531 |
LTIP Unit Awards | 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Remaining unvested target units, expected to vest | 898,126 |
LTIP Unit Awards | 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Remaining unvested target units, expected to vest | 0 |
LTIP Unit Awards | 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Remaining unvested target units, expected to vest | 0 |
Restricted Share Awards | 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Remaining unvested target units, expected to vest | 191,177 |
Restricted Share Awards | 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Remaining unvested target units, expected to vest | 8,170 |
Restricted Share Awards | 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Remaining unvested target units, expected to vest | 3,531 |
Earnings Per Share (Reconciliat
Earnings Per Share (Reconciliation Of Earnings Per Share) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||||
Basic and Diluted | ||||||||||||||
Net (Loss) Income | $ (43,335) | $ (48,173) | $ (71,780) | $ (25,972) | $ (4,031) | $ 507 | $ 5,559 | $ (7,882) | $ (189,260) | $ (5,847) | $ 8,365 | |||
Loss allocated to Noncontrolling Interests | 22,915 | 2,178 | 1,625 | |||||||||||
Distributions to Preferred Shareholders | $ (6,044) | $ (6,044) | $ (6,044) | $ (6,044) | $ (6,043) | $ (6,044) | $ (6,043) | $ (6,044) | (24,176) | (24,174) | (24,174) | |||
Dividends Paid on Unvested Restricted Shares and LTIP Units | 0 | (981) | (740) | |||||||||||
Net Loss from Continuing Operations attributable to Common Shareholders | $ (190,521) | $ (28,824) | $ (14,924) | |||||||||||
DENOMINATOR: | ||||||||||||||
Weighted average number of common shares - basic (in shares) | 38,640,604 | 38,639,048 | 38,609,922 | 38,564,099 | 38,516,879 | 38,878,818 | 39,127,385 | 39,115,390 | 38,613,563 | 38,907,894 | 39,383,763 | |||
Effect of dilutive securities: | ||||||||||||||
Restricted Stock Awards and LTIP Units (unvested) (in shares) | 0 | 0 | 0 | |||||||||||
Contingently Issued Shares (in shares) | 0 | 0 | 0 | |||||||||||
Weighted average number of common shares - diluted (in shares) | 38,640,604 | 38,639,048 | 38,609,922 | 38,564,099 | 38,516,879 | 38,878,818 | 39,127,385 | 39,115,390 | 38,613,563 | [1] | 38,907,894 | [1] | 39,383,763 | [1] |
[1] | Income allocated to noncontrolling interest in Hersha Hospitality Limited Partnership (the “Operating Partnership” or “HHLP”) has been excluded from the numerator and the Class A common shares issuable upon any redemption of the Operating Partnership’s common units of limited partnership interest (“Common Units”) and the Operating Partnership’s vested LTIP units (“Vested LTIP Units”) have been omitted from the denominator for the purpose of computing diluted earnings per share because the effect of including these shares and units in the numerator and denominator would have no impact. In addition, potentially dilutive common shares, if any, have been excluded from the denominator if they are anti-dilutive to income applicable to common shareholders. |
Cash Flow Disclosures And Non_3
Cash Flow Disclosures And Non Cash Investing And Financing Activities (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |||
Interest paid | $ 38,170 | $ 54,158 | $ 49,148 |
Net payments (proceeds) for interest rate derivatives | 7,635 | (4,336) | (2,728) |
Cash paid for income taxes | $ 79 | $ 53 | $ 1,140 |
Cash Flow Disclosures And Non_4
Cash Flow Disclosures And Non Cash Investing And Financing Activities (Non-cash Investing And Financing Activities) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Non-cash Investing and Financing Activities | |||
Common Shares issued as part of the Dividend Reinvestment Plan | $ 14 | $ 60 | $ 77 |
Acquisition of hotel properties: | |||
Deposit paid in prior period towards acquisition which closed in current period | 0 | 0 | 1,000 |
Conversion of note payable and accrued interest to Non-Controlling Interest | 0 | 0 | 3,387 |
Conversion of Common Units to Common Shares | 0 | 0 | 1,173 |
Issuance of share based payments | 7,259 | 12,924 | 13,661 |
Accrued payables for fixed assets placed into service | 658 | 2,506 | 2,912 |
Cumulative Effect on Equity from the Adoption of ASC Subtopic 610-20 | 0 | 0 | 129,021 |
Adjustment to Record Non-Controlling Interest at Redemption Value | (3,196) | 488 | 2,708 |
Adjustment to Record Right of Use Asset & Lease Liability | $ 0 | $ 55,515 | $ 0 |
Cash Flow Disclosures And Non_5
Cash Flow Disclosures And Non Cash Investing And Financing Activities (Reconciliation of Cash) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Supplemental Cash Flow Elements [Abstract] | ||||
Cash and cash equivalents | $ 16,637 | $ 27,012 | $ 32,598 | |
Escrowed cash | 6,970 | 9,973 | 8,185 | |
Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows | $ 23,607 | $ 36,985 | $ 40,783 | $ 25,586 |
Shareholders' Equity And Nonc_2
Shareholders' Equity And Noncontrolling Interests In Partnership (Details) | 12 Months Ended | ||
Dec. 31, 2020shares | Dec. 31, 2019shares | Dec. 31, 2018shares | |
Stockholders' Equity Note [Abstract] | |||
Total number of Common Units outstanding (in shares) | 2,066,615 | 2,066,615 | 2,066,615 |
Common units converted to Class A Common Shares (in shares) | 0 | 0 | 62,807 |
LTIP unit issuance (in shares) | 1,112,862 | ||
Share conversion rate (share) | 1 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Segment Reporting Information | |
Increase to valuation allowance | $ 23,095 |
Net operating loss carryforwards subject to expiration | 34,255 |
Net operating loss carryforwards not subject to expiration | 43,815 |
Tax credits | 355 |
Federal | |
Segment Reporting Information | |
Net operating loss carryforwards | 78,070 |
State | |
Segment Reporting Information | |
Net operating loss carryforwards | $ 85,355 |
Income Taxes (Effective Income
Income Taxes (Effective Income Tax Reconciliation) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||||||||||
Statutory federal income tax provision | $ (37,365) | $ (1,208) | $ 1,813 | ||||||||
Adjustment for nontaxable income for Hersha Hospitality Trust | 29,636 | 1,419 | (1,269) | ||||||||
State income taxes, net of federal income tax effect | (2,720) | 456 | 32 | ||||||||
Non-deductible expenses, tax credits, and other, net | (1,317) | (575) | (309) | ||||||||
Changes in valuation allowance | 23,095 | 0 | 0 | ||||||||
Total income tax expense | $ (17) | $ (28) | $ 15,872 | $ (4,498) | $ 1,876 | $ (551) | $ 4,031 | $ (5,264) | $ 11,329 | $ 92 | $ 267 |
Income Taxes (Components Of The
Income Taxes (Components Of The Company's Income Tax Expense (Benefit)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current: | |||||||||||
Federal | $ (51) | $ (60) | $ (119) | ||||||||
State | (10) | 464 | 530 | ||||||||
Deferred: | |||||||||||
Federal | 7,688 | (302) | 467 | ||||||||
State | 3,702 | (10) | (611) | ||||||||
Total income tax expense | $ (17) | $ (28) | $ 15,872 | $ (4,498) | $ 1,876 | $ (551) | $ 4,031 | $ (5,264) | $ 11,329 | $ 92 | $ 267 |
Income Taxes (Components Of Con
Income Taxes (Components Of Consolidated TRS's Deferred Tax Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 21,569 | $ 9,871 |
Accrued expenses and other | 1,493 | 1,641 |
Tax credit carryforwards | 355 | 415 |
Depreciation and amortization | 174 | (40) |
Total gross deferred tax assets | 23,591 | 11,887 |
Valuation allowance | (23,591) | (497) |
Total Net deferred tax assets | $ 0 | $ 11,390 |
Income Taxes (Taxability Of Com
Income Taxes (Taxability Of Common And Preferred Share Distributions) (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Preferred Shares - 6.875% Series C | |||
Income Tax | |||
Ordinary income (in hundredths) | 0.00% | 100.00% | 100.00% |
Return of Capital (in hundredths) | 100.00% | 0.00% | 0.00% |
Capital Gain Distribution (in hundredths) | 0.00% | 0.00% | 0.00% |
Preferred Shares - 6.5% Series D | |||
Income Tax | |||
Ordinary income (in hundredths) | 0.00% | 100.00% | 100.00% |
Return of Capital (in hundredths) | 100.00% | 0.00% | 0.00% |
Capital Gain Distribution (in hundredths) | 0.00% | 0.00% | 0.00% |
Preferred Shares - 6.5% Series E | |||
Income Tax | |||
Ordinary income (in hundredths) | 0.00% | 100.00% | 100.00% |
Return of Capital (in hundredths) | 100.00% | 0.00% | 0.00% |
Capital Gain Distribution (in hundredths) | 0.00% | 0.00% | 0.00% |
Common Shares - Class A | |||
Income Tax | |||
Ordinary income (in hundredths) | 0.00% | 33.03% | 37.91% |
Return of Capital (in hundredths) | 100.00% | 66.97% | 62.09% |
Capital Gain Distribution (in hundredths) | 0.00% | 0.00% | 0.00% |
Selected Quarterly Financial _3
Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||||
Hotel Operating Revenues: | ||||||||||||||
Other Revenues | $ 10,082 | $ 26 | $ 31 | $ 235 | $ 124 | $ 142 | $ 46 | $ 274 | ||||||
Hotel Operating Expenses: | ||||||||||||||
Other Expense | 59,443 | 53,534 | 54,471 | 54,106 | 55,411 | 55,062 | 55,658 | 53,133 | ||||||
Income (Loss) from Unconsolidated Joint Ventures | (749) | (669) | (502) | (1,018) | 173 | 38 | 299 | 181 | $ (2,938) | $ 691 | $ 1,084 | |||
(Loss) Income Before Income Taxes | (43,352) | (48,201) | (55,908) | (30,470) | (2,155) | (44) | 9,590 | (13,146) | (177,931) | (5,755) | 8,632 | |||
Income Tax Expense | 17 | 28 | (15,872) | 4,498 | (1,876) | 551 | (4,031) | 5,264 | (11,329) | (92) | (267) | |||
Net (Loss) Income | (43,335) | (48,173) | (71,780) | (25,972) | (4,031) | 507 | 5,559 | (7,882) | (189,260) | (5,847) | 8,365 | |||
Preferred Distributions | 6,044 | 6,044 | 6,044 | 6,044 | 6,043 | 6,044 | 6,043 | 6,044 | 24,176 | 24,174 | 24,174 | |||
Net Income (Loss) applicable to Common Shareholders | $ (44,753) | $ (49,185) | $ (67,464) | $ (29,119) | $ (9,262) | $ (5,435) | $ (143) | $ (13,003) | $ (190,521) | $ (27,843) | $ (14,184) | |||
Earnings per share: | ||||||||||||||
Basic Net (Loss) Income applicable to Common Shareholders (in dollars per share) | $ (1.16) | $ (1.27) | $ (1.75) | $ (0.76) | $ (0.24) | $ (0.15) | $ (0.01) | $ (0.34) | $ (4.93) | $ (0.74) | $ (0.38) | |||
(Loss) Income from Continuing Operations Applicable to Common Shareholders (in dollars per share) | $ (1.16) | $ (1.27) | $ (1.75) | $ (0.76) | $ (0.24) | $ (0.15) | $ (0.01) | $ (0.34) | $ (4.93) | $ (0.74) | $ (0.38) | |||
Weighted Average Common Shares Outstanding: | ||||||||||||||
Weighted average number of common shares - basic (in shares) | 38,640,604 | 38,639,048 | 38,609,922 | 38,564,099 | 38,516,879 | 38,878,818 | 39,127,385 | 39,115,390 | 38,613,563 | 38,907,894 | 39,383,763 | |||
Weighted average number of common shares - diluted (in shares) | 38,640,604 | 38,639,048 | 38,609,922 | 38,564,099 | 38,516,879 | 38,878,818 | 39,127,385 | 39,115,390 | 38,613,563 | [1] | 38,907,894 | [1] | 39,383,763 | [1] |
Room | ||||||||||||||
Hotel Operating Revenues: | ||||||||||||||
Hotel Operating Revenues | $ 28,492 | $ 27,546 | $ 15,139 | $ 71,083 | $ 105,324 | $ 108,909 | $ 118,980 | $ 91,485 | $ 142,260 | $ 424,698 | $ 397,907 | |||
Hotel Operating Expenses: | ||||||||||||||
Hotel Operating Expenses | 8,637 | 7,436 | 3,622 | 19,092 | 23,385 | 24,000 | 24,013 | 22,090 | 38,787 | 93,488 | 88,663 | |||
Food & Beverage | ||||||||||||||
Hotel Operating Revenues: | ||||||||||||||
Hotel Operating Revenues | 2,766 | 2,441 | 136 | 10,075 | 17,028 | 15,870 | 18,253 | 14,228 | 15,418 | 65,379 | 64,546 | |||
Hotel Operating Expenses: | ||||||||||||||
Hotel Operating Expenses | 2,513 | 2,344 | 721 | 10,621 | 13,393 | 12,605 | 13,990 | 12,832 | 16,199 | 52,820 | 52,122 | |||
Other Operating | ||||||||||||||
Hotel Operating Revenues: | ||||||||||||||
Hotel Operating Revenues | 4,114 | 3,734 | 2,137 | 8,780 | 10,241 | 10,140 | 10,280 | 8,930 | 18,765 | 39,591 | 31,225 | |||
Hotel Operating Expenses: | ||||||||||||||
Hotel Operating Expenses | 17,464 | 17,965 | 14,035 | 35,806 | 42,856 | 43,476 | 44,607 | 40,189 | 85,270 | 171,128 | 158,064 | |||
Noncontrolling Interests Common Units And LTIP Units | ||||||||||||||
Hotel Operating Expenses: | ||||||||||||||
Net (Loss) Income | (19,698) | (2,366) | (916) | |||||||||||
Income (loss) Allocated to Noncontrolling Interests | (4,605) | (5,032) | (7,164) | (2,897) | (812) | (442) | (49) | (1,063) | (19,698) | (2,366) | (916) | |||
Consolidated Joint Ventures | ||||||||||||||
Hotel Operating Expenses: | ||||||||||||||
Net (Loss) Income | (21) | (300) | (3,417) | |||||||||||
Income (loss) Allocated to Noncontrolling Interests | $ (21) | $ 0 | $ (3,196) | $ 0 | $ 0 | $ 340 | $ (292) | $ 140 | $ (3,217) | $ 188 | $ (709) | |||
[1] | Income allocated to noncontrolling interest in Hersha Hospitality Limited Partnership (the “Operating Partnership” or “HHLP”) has been excluded from the numerator and the Class A common shares issuable upon any redemption of the Operating Partnership’s common units of limited partnership interest (“Common Units”) and the Operating Partnership’s vested LTIP units (“Vested LTIP Units”) have been omitted from the denominator for the purpose of computing diluted earnings per share because the effect of including these shares and units in the numerator and denominator would have no impact. In addition, potentially dilutive common shares, if any, have been excluded from the denominator if they are anti-dilutive to income applicable to common shareholders. |
Schedule III - Real Estate An_2
Schedule III - Real Estate And Accumulated Depreciation (Real Estate And Accumulated Depreciation) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Real Estate and Accumulated Depreciation | ||||
Encumbrances | $ (332,264) | |||
Initial Costs | ||||
Land | 516,478 | |||
Buildings & Improvements | 1,474,972 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings & Improvements | 229,486 | |||
Gross Amounts at which Carried at Close of Period | ||||
Land | 516,478 | |||
Buildings & Improvements | 1,704,458 | |||
Total | 2,220,936 | $ 2,228,864 | $ 2,206,701 | $ 2,159,282 |
Accumulated Depreciation | (396,016) | $ (340,499) | $ (277,580) | $ (238,213) |
Net Book Value | 1,824,920 | |||
Courtyard by Marriott Brookline, Brookline, MA | Hotel | ||||
Initial Costs | ||||
Land | 0 | |||
Buildings & Improvements | 47,414 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings & Improvements | 5,021 | |||
Gross Amounts at which Carried at Close of Period | ||||
Land | 0 | |||
Buildings & Improvements | 52,435 | |||
Total | 52,435 | |||
Accumulated Depreciation | (22,329) | |||
Net Book Value | 30,106 | |||
Annapolis Waterfront Hotel, Annapolis, MD | Hotel | ||||
Real Estate and Accumulated Depreciation | ||||
Encumbrances | (28,000) | |||
Initial Costs | ||||
Land | 0 | |||
Buildings & Improvements | 43,251 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings & Improvements | 4,112 | |||
Gross Amounts at which Carried at Close of Period | ||||
Land | 0 | |||
Buildings & Improvements | 47,363 | |||
Total | 47,363 | |||
Accumulated Depreciation | (3,440) | |||
Net Book Value | 43,923 | |||
Hilton Garden Inn JFK, JFK Airport, NY | Hotel | ||||
Initial Costs | ||||
Land | 0 | |||
Buildings & Improvements | 25,018 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings & Improvements | 3,999 | |||
Gross Amounts at which Carried at Close of Period | ||||
Land | 0 | |||
Buildings & Improvements | 29,017 | |||
Total | 29,017 | |||
Accumulated Depreciation | (12,303) | |||
Net Book Value | 16,714 | |||
Holiday Inn Express Cambridge, Cambridge, MA | Hotel | ||||
Initial Costs | ||||
Land | 1,956 | |||
Buildings & Improvements | 9,793 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings & Improvements | 5,328 | |||
Gross Amounts at which Carried at Close of Period | ||||
Land | 1,956 | |||
Buildings & Improvements | 15,121 | |||
Total | 17,077 | |||
Accumulated Depreciation | (6,454) | |||
Net Book Value | 10,623 | |||
Hyatt House White Plains, White Plains, NY | Hotel | ||||
Initial Costs | ||||
Land | 8,823 | |||
Buildings & Improvements | 30,273 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings & Improvements | 12,855 | |||
Gross Amounts at which Carried at Close of Period | ||||
Land | 8,823 | |||
Buildings & Improvements | 43,128 | |||
Total | 51,951 | |||
Accumulated Depreciation | (16,552) | |||
Net Book Value | 35,399 | |||
Hampton Inn Seaport, Seaport, NY | Hotel | ||||
Initial Costs | ||||
Land | 7,816 | |||
Buildings & Improvements | 19,040 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings & Improvements | 1,601 | |||
Gross Amounts at which Carried at Close of Period | ||||
Land | 7,816 | |||
Buildings & Improvements | 20,641 | |||
Total | 28,457 | |||
Accumulated Depreciation | (7,834) | |||
Net Book Value | 20,623 | |||
Gate Hotel JFK Airport, JFK Airport, NY | Hotel | ||||
Initial Costs | ||||
Land | 0 | |||
Buildings & Improvements | 27,315 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings & Improvements | 2,343 | |||
Gross Amounts at which Carried at Close of Period | ||||
Land | 0 | |||
Buildings & Improvements | 29,658 | |||
Total | 29,658 | |||
Accumulated Depreciation | (10,660) | |||
Net Book Value | 18,998 | |||
Hampton Inn Center City/ Convention Center, Philadelphia, PA | Hotel | ||||
Initial Costs | ||||
Land | 3,490 | |||
Buildings & Improvements | 24,382 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings & Improvements | 11,706 | |||
Gross Amounts at which Carried at Close of Period | ||||
Land | 3,490 | |||
Buildings & Improvements | 36,088 | |||
Total | 39,578 | |||
Accumulated Depreciation | (18,342) | |||
Net Book Value | 21,236 | |||
Duane Street Hotel, Tribeca, NY | Hotel | ||||
Initial Costs | ||||
Land | 8,213 | |||
Buildings & Improvements | 12,869 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings & Improvements | 1,251 | |||
Gross Amounts at which Carried at Close of Period | ||||
Land | 8,213 | |||
Buildings & Improvements | 14,120 | |||
Total | 22,333 | |||
Accumulated Depreciation | (5,986) | |||
Net Book Value | 16,347 | |||
NU Hotel Brooklyn, Brooklyn, NY | Hotel | ||||
Initial Costs | ||||
Land | 0 | |||
Buildings & Improvements | 22,042 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings & Improvements | 1,978 | |||
Gross Amounts at which Carried at Close of Period | ||||
Land | 0 | |||
Buildings & Improvements | 24,020 | |||
Total | 24,020 | |||
Accumulated Depreciation | (8,523) | |||
Net Book Value | 15,497 | |||
Hilton Garden Inn Tribeca, Tribeca, NY | Hotel | ||||
Real Estate and Accumulated Depreciation | ||||
Encumbrances | (45,450) | |||
Initial Costs | ||||
Land | 21,077 | |||
Buildings & Improvements | 42,955 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings & Improvements | 1,417 | |||
Gross Amounts at which Carried at Close of Period | ||||
Land | 21,077 | |||
Buildings & Improvements | 44,372 | |||
Total | 65,449 | |||
Accumulated Depreciation | (13,462) | |||
Net Book Value | 51,987 | |||
Hampton Inn Washington, D.C., Washington, DC | Hotel | ||||
Initial Costs | ||||
Land | 9,335 | |||
Buildings & Improvements | 58,048 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings & Improvements | 5,041 | |||
Gross Amounts at which Carried at Close of Period | ||||
Land | 9,335 | |||
Buildings & Improvements | 63,089 | |||
Total | 72,424 | |||
Accumulated Depreciation | (16,833) | |||
Net Book Value | 55,591 | |||
The Capitol Hill Hotel Washington, DC | Hotel | ||||
Real Estate and Accumulated Depreciation | ||||
Encumbrances | (25,000) | |||
Initial Costs | ||||
Land | 8,095 | |||
Buildings & Improvements | 35,141 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings & Improvements | 5,148 | |||
Gross Amounts at which Carried at Close of Period | ||||
Land | 8,095 | |||
Buildings & Improvements | 40,289 | |||
Total | 48,384 | |||
Accumulated Depreciation | (12,690) | |||
Net Book Value | 35,694 | |||
Courtyard by Marriott Los Angeles Westside, LA Westside, CA | Hotel | ||||
Real Estate and Accumulated Depreciation | ||||
Encumbrances | (35,000) | |||
Initial Costs | ||||
Land | 13,489 | |||
Buildings & Improvements | 27,025 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings & Improvements | 4,972 | |||
Gross Amounts at which Carried at Close of Period | ||||
Land | 13,489 | |||
Buildings & Improvements | 31,997 | |||
Total | 45,486 | |||
Accumulated Depreciation | (11,189) | |||
Net Book Value | 34,297 | |||
Cadillac Hotel & Beach Club, Miami, FL | Hotel | ||||
Initial Costs | ||||
Land | 35,700 | |||
Buildings & Improvements | 55,805 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings & Improvements | 44,398 | |||
Gross Amounts at which Carried at Close of Period | ||||
Land | 35,700 | |||
Buildings & Improvements | 100,203 | |||
Total | 135,903 | |||
Accumulated Depreciation | (26,819) | |||
Net Book Value | 109,084 | |||
The Rittenhouse Hotel, Philadelphia, PA | Hotel | ||||
Initial Costs | ||||
Land | 7,108 | |||
Buildings & Improvements | 29,556 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings & Improvements | 27,942 | |||
Gross Amounts at which Carried at Close of Period | ||||
Land | 7,108 | |||
Buildings & Improvements | 57,498 | |||
Total | 64,606 | |||
Accumulated Depreciation | (26,293) | |||
Net Book Value | 38,313 | |||
The Boxer Boston, Boston, MA | Hotel | ||||
Initial Costs | ||||
Land | 1,456 | |||
Buildings & Improvements | 14,954 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings & Improvements | 2,153 | |||
Gross Amounts at which Carried at Close of Period | ||||
Land | 1,456 | |||
Buildings & Improvements | 17,107 | |||
Total | 18,563 | |||
Accumulated Depreciation | (4,854) | |||
Net Book Value | 13,709 | |||
Holiday Inn Express Chelsea, Manhattan, NY | Hotel | ||||
Initial Costs | ||||
Land | 30,329 | |||
Buildings & Improvements | 57,016 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings & Improvements | 2,160 | |||
Gross Amounts at which Carried at Close of Period | ||||
Land | 30,329 | |||
Buildings & Improvements | 59,176 | |||
Total | 89,505 | |||
Accumulated Depreciation | (13,486) | |||
Net Book Value | 76,019 | |||
Hyatt Union Square, Union Square, NY | Hotel | ||||
Real Estate and Accumulated Depreciation | ||||
Encumbrances | (56,000) | |||
Initial Costs | ||||
Land | 32,940 | |||
Buildings & Improvements | 79,300 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings & Improvements | 4,176 | |||
Gross Amounts at which Carried at Close of Period | ||||
Land | 32,940 | |||
Buildings & Improvements | 83,476 | |||
Total | 116,416 | |||
Accumulated Depreciation | (17,736) | |||
Net Book Value | 98,680 | |||
Courtyard by Marriott Downtown San Diego, San Diego, CA | Hotel | ||||
Initial Costs | ||||
Land | 15,656 | |||
Buildings & Improvements | 51,674 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings & Improvements | 2,152 | |||
Gross Amounts at which Carried at Close of Period | ||||
Land | 15,656 | |||
Buildings & Improvements | 53,826 | |||
Total | 69,482 | |||
Accumulated Depreciation | (11,393) | |||
Net Book Value | 58,089 | |||
Residence Inn Miami Coconut Grove, Coconut Grove, FL | Hotel | ||||
Initial Costs | ||||
Land | 4,146 | |||
Buildings & Improvements | 17,456 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings & Improvements | 7,912 | |||
Gross Amounts at which Carried at Close of Period | ||||
Land | 4,146 | |||
Buildings & Improvements | 25,368 | |||
Total | 29,514 | |||
Accumulated Depreciation | (9,685) | |||
Net Book Value | 19,829 | |||
The Hotel Milo, Santa Barbara, CA | Hotel | ||||
Real Estate and Accumulated Depreciation | ||||
Encumbrances | (21,693) | |||
Initial Costs | ||||
Land | 0 | |||
Buildings & Improvements | 55,080 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings & Improvements | 4,960 | |||
Gross Amounts at which Carried at Close of Period | ||||
Land | 0 | |||
Buildings & Improvements | 60,040 | |||
Total | 60,040 | |||
Accumulated Depreciation | (12,398) | |||
Net Book Value | 47,642 | |||
Hilton Garden Inn Manhattan Midtown East, Midtown East, NY | Hotel | ||||
Real Estate and Accumulated Depreciation | ||||
Encumbrances | (44,325) | |||
Initial Costs | ||||
Land | 45,480 | |||
Buildings & Improvements | 60,762 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings & Improvements | 577 | |||
Gross Amounts at which Carried at Close of Period | ||||
Land | 45,480 | |||
Buildings & Improvements | 61,339 | |||
Total | 106,819 | |||
Accumulated Depreciation | (10,270) | |||
Net Book Value | 96,549 | |||
Parrot Key Hotel & Villas, Key West, FL | Hotel | ||||
Initial Costs | ||||
Land | 57,889 | |||
Buildings & Improvements | 33,959 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings & Improvements | 14,224 | |||
Gross Amounts at which Carried at Close of Period | ||||
Land | 57,889 | |||
Buildings & Improvements | 48,183 | |||
Total | 106,072 | |||
Accumulated Depreciation | (11,295) | |||
Net Book Value | 94,777 | |||
The Winter Haven Hotel Miami Beach, Miami Beach, FL | Hotel | ||||
Initial Costs | ||||
Land | 5,400 | |||
Buildings & Improvements | 18,147 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings & Improvements | 707 | |||
Gross Amounts at which Carried at Close of Period | ||||
Land | 5,400 | |||
Buildings & Improvements | 18,854 | |||
Total | 24,254 | |||
Accumulated Depreciation | (3,692) | |||
Net Book Value | 20,562 | |||
The Blue Moon Hotel Miami Beach, Miami Beach, FL | Hotel | ||||
Initial Costs | ||||
Land | 4,874 | |||
Buildings & Improvements | 20,354 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings & Improvements | 1,039 | |||
Gross Amounts at which Carried at Close of Period | ||||
Land | 4,874 | |||
Buildings & Improvements | 21,393 | |||
Total | 26,267 | |||
Accumulated Depreciation | (4,232) | |||
Net Book Value | 22,035 | |||
The St. Gregory Hotel, Dupont Circle, Washington D.C. | Hotel | ||||
Real Estate and Accumulated Depreciation | ||||
Encumbrances | (22,138) | |||
Initial Costs | ||||
Land | 23,764 | |||
Buildings & Improvements | 33,005 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings & Improvements | 7,529 | |||
Gross Amounts at which Carried at Close of Period | ||||
Land | 23,764 | |||
Buildings & Improvements | 40,534 | |||
Total | 64,298 | |||
Accumulated Depreciation | (8,237) | |||
Net Book Value | 56,061 | |||
TownePlace Suites Sunnyvale, Sunnyvale, CA | Hotel | ||||
Initial Costs | ||||
Land | 0 | |||
Buildings & Improvements | 18,999 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings & Improvements | 677 | |||
Gross Amounts at which Carried at Close of Period | ||||
Land | 0 | |||
Buildings & Improvements | 19,676 | |||
Total | 19,676 | |||
Accumulated Depreciation | (2,919) | |||
Net Book Value | 16,757 | |||
The Ritz-Carlton Georgetown, Washington D.C. | Hotel | ||||
Initial Costs | ||||
Land | 17,825 | |||
Buildings & Improvements | 29,584 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings & Improvements | 4,114 | |||
Gross Amounts at which Carried at Close of Period | ||||
Land | 17,825 | |||
Buildings & Improvements | 33,698 | |||
Total | 51,523 | |||
Accumulated Depreciation | (5,214) | |||
Net Book Value | 46,309 | |||
The Sanctuary Beach Resort, Marina, CA | Hotel | ||||
Real Estate and Accumulated Depreciation | ||||
Encumbrances | (14,207) | |||
Initial Costs | ||||
Land | 20,278 | |||
Buildings & Improvements | 17,319 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings & Improvements | 6,887 | |||
Gross Amounts at which Carried at Close of Period | ||||
Land | 20,278 | |||
Buildings & Improvements | 24,206 | |||
Total | 44,484 | |||
Accumulated Depreciation | (5,166) | |||
Net Book Value | 39,318 | |||
Hilton Garden Inn M Street, Washington D.C. | Hotel | ||||
Initial Costs | ||||
Land | 30,793 | |||
Buildings & Improvements | 67,420 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings & Improvements | 243 | |||
Gross Amounts at which Carried at Close of Period | ||||
Land | 30,793 | |||
Buildings & Improvements | 67,663 | |||
Total | 98,456 | |||
Accumulated Depreciation | (8,193) | |||
Net Book Value | 90,263 | |||
The Envoy Boston Seaport, Boston, MA | Hotel | ||||
Initial Costs | ||||
Land | 25,264 | |||
Buildings & Improvements | 75,979 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings & Improvements | 3,928 | |||
Gross Amounts at which Carried at Close of Period | ||||
Land | 25,264 | |||
Buildings & Improvements | 79,907 | |||
Total | 105,171 | |||
Accumulated Depreciation | (9,747) | |||
Net Book Value | 95,424 | |||
Courtyard by Marriott Sunnyvale, Sunnyvale, CA | Hotel | ||||
Real Estate and Accumulated Depreciation | ||||
Encumbrances | (40,451) | |||
Initial Costs | ||||
Land | 17,694 | |||
Buildings & Improvements | 53,272 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings & Improvements | 83 | |||
Gross Amounts at which Carried at Close of Period | ||||
Land | 17,694 | |||
Buildings & Improvements | 53,355 | |||
Total | 71,049 | |||
Accumulated Depreciation | (5,611) | |||
Net Book Value | 65,438 | |||
Mystic Marriott Hotel & Spa, Groton, CT | Hotel | ||||
Initial Costs | ||||
Land | 1,420 | |||
Buildings & Improvements | 40,440 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings & Improvements | 9,836 | |||
Gross Amounts at which Carried at Close of Period | ||||
Land | 1,420 | |||
Buildings & Improvements | 50,276 | |||
Total | 51,696 | |||
Accumulated Depreciation | (7,342) | |||
Net Book Value | 44,354 | |||
The Ritz-Carlton Coconut Grove, Coconut Grove, FL | Hotel | ||||
Initial Costs | ||||
Land | 5,185 | |||
Buildings & Improvements | 30,825 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings & Improvements | 9,986 | |||
Gross Amounts at which Carried at Close of Period | ||||
Land | 5,185 | |||
Buildings & Improvements | 40,811 | |||
Total | 45,996 | |||
Accumulated Depreciation | (6,047) | |||
Net Book Value | 39,949 | |||
The Pan Pacific Hotel Seattle, Seattle, WA | Hotel | ||||
Initial Costs | ||||
Land | 13,079 | |||
Buildings & Improvements | 59,255 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings & Improvements | 728 | |||
Gross Amounts at which Carried at Close of Period | ||||
Land | 13,079 | |||
Buildings & Improvements | 59,983 | |||
Total | 73,062 | |||
Accumulated Depreciation | (5,783) | |||
Net Book Value | 67,279 | |||
Philadelphia Westin, Philadelphia, PA | Hotel | ||||
Initial Costs | ||||
Land | 19,154 | |||
Buildings & Improvements | 103,406 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings & Improvements | 4,692 | |||
Gross Amounts at which Carried at Close of Period | ||||
Land | 19,154 | |||
Buildings & Improvements | 108,098 | |||
Total | 127,252 | |||
Accumulated Depreciation | (9,706) | |||
Net Book Value | 117,546 | |||
The Ambrose Hotel, Santa Monica, CA | Hotel | ||||
Initial Costs | ||||
Land | 18,750 | |||
Buildings & Improvements | 26,839 | |||
Costs Capitalized Subsequent to Acquisition | ||||
Land | 0 | |||
Buildings & Improvements | 1,611 | |||
Gross Amounts at which Carried at Close of Period | ||||
Land | 18,750 | |||
Buildings & Improvements | 28,450 | |||
Total | 47,200 | |||
Accumulated Depreciation | (3,301) | |||
Net Book Value | $ 43,899 |
Schedule III - Real Estate An_3
Schedule III - Real Estate And Accumulated Depreciation (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Real Estate and Accumulated Depreciation | |||
Aggregate cost of land, buildings and improvements | $ 1,633,467 | $ 1,675,650 | $ 1,745,577 |
Buildings and Improvements | Minimum | |||
Real Estate and Accumulated Depreciation | |||
Useful life of buildings and improvements | 7 years | ||
Buildings and Improvements | Maximum | |||
Real Estate and Accumulated Depreciation | |||
Useful life of buildings and improvements | 40 years |
Schedule III - Real Estate An_4
Schedule III - Real Estate And Accumulated Depreciation (Reconciliation Of Real Estate and Accumulated Depreciation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of Real Estate | |||
Balance at beginning of year | $ 2,228,864 | $ 2,206,701 | $ 2,159,282 |
Additions during the year | 17,967 | 22,163 | 122,708 |
Dispositions/Deconsolidation of consolidated joint venture during the year | (25,895) | 0 | (75,289) |
Total Real Estate | 2,220,936 | 2,228,864 | 2,206,701 |
Reconciliation of Accumulated Depreciation | |||
Balance at beginning of year | 340,499 | 277,580 | 238,213 |
Depreciation for year | 64,083 | 62,919 | 55,496 |
Accumulated depreciation on assets sold | (8,566) | 0 | (16,129) |
Balance at the end of year | $ 396,016 | $ 340,499 | $ 277,580 |
Uncategorized Items - ht-202012
Label | Element | Value |
Accounting Standards Update [Extensible List] | us-gaap_AccountingStandardsUpdateExtensibleList | us-gaap:AccountingStandardsUpdate201705Member |