NYSE:HT

Stock Analysis Report

Hersha Hospitality Trust

Executive Summary

Hersha Hospitality Trust (HT) is a self-advised real estate investment trust in the hospitality sector, which owns and operates high quality upscale, luxury and lifestyle hotels in urban gateway markets and resort destinations.

Rewards

Trading at 58.7% below its fair value

Pays a high and reliable dividend of 8.19%

Risk Analysis

Earnings are forecast to decline by an average of -0.6% per year for the next 3 years

Significant insider selling over the past 3 months



Snowflake Analysis

Established dividend payer and fair value.


Similar Companies

Share Price & News

How has Hersha Hospitality Trust's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HT has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.0%

HT

2.5%

US REITs

1.7%

US Market


1 Year Return

-21.7%

HT

18.4%

US REITs

23.2%

US Market

Return vs Industry: HT underperformed the US REITs industry which returned 17.9% over the past year.

Return vs Market: HT underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

HTIndustryMarket
7 Day3.0%2.5%1.7%
30 Day-3.9%4.4%4.2%
90 Day2.8%-0.2%11.9%
1 Year-15.8%-21.7%23.3%18.4%25.8%23.2%
3 Year-16.9%-31.3%35.5%18.4%52.8%42.9%
5 Year-30.6%-48.9%46.5%16.3%75.2%55.8%

Price Volatility Vs. Market

How volatile is Hersha Hospitality Trust's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Hersha Hospitality Trust undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HT ($13.67) is trading below our estimate of fair value ($33.1)

Significantly Below Fair Value: HT is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: HT is unprofitable, so we can't compare its PE Ratio to the REITs industry average.

PE vs Market: HT is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate HT's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: HT is good value based on its PB Ratio (0.6x) compared to the US REITs industry average (2x).


Next Steps

Future Growth

How is Hersha Hospitality Trust forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

-0.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HT is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: HT is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: HT is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: HT's revenue (1.3% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: HT's revenue (1.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HT is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Hersha Hospitality Trust performed over the past 5 years?

-27.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HT is currently unprofitable.

Growing Profit Margin: HT is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: HT is unprofitable, and losses have increased over the past 5 years at a rate of -27.1% per year.

Accelerating Growth: Unable to compare HT's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: HT is unprofitable, making it difficult to compare its past year earnings growth to the REITs industry (8.1%).


Return on Equity

High ROE: HT has a negative Return on Equity (0.098%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Hersha Hospitality Trust's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: HT has a high level of physical assets or inventory.

Debt Coverage by Assets: HT's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

Asset Level: HT's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if HT has a sufficient allowance for bad loans.

Low Risk Liabilities: HT reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if HT has an acceptable proportion of non-loan assets held.

Low Risk Deposits: HT has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if HT has an appropriate level of bad loans.


Next Steps

Dividend

What is Hersha Hospitality Trust's current dividend yield, its reliability and sustainability?

8.06%

Current Dividend Yield


Dividend Yield vs Market

company8.1%marketbottom25%1.4%markettop25%3.6%industryaverage3.6%forecastin3Years8.1%

Current dividend yield vs market & industry

Notable Dividend: HT's dividend (8.19%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: HT's dividend (8.19%) is in the top 25% of dividend payers in the US market (3.66%)


Stability and Growth of Payments

Stable Dividend: HT's dividends per share have been stable in the past 10 years.

Growing Dividend: HT's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (93%), HT's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HT's dividends in 3 years are forecast to be thoroughly covered by earnings (1.2% payout ratio).


Next Steps

Management

What is the CEO of Hersha Hospitality Trust's salary, the management and board of directors tenure and is there insider trading?

14.0yrs

Average management tenure


CEO

Jay Shah (50yo)

14yrs

Tenure

US$4,671,443

Compensation

Mr. Jay H. Shah has been the Chief Executive Officer at Hersha Hospitality Trust since January 1, 2006 and is involved in all areas of the business with a particular emphasis on strategic relationships, ca ...


CEO Compensation Analysis

Compensation vs Market: Jay's total compensation ($USD4.67M) is above average for companies of similar size in the US market ($USD1.70M).

Compensation vs Earnings: Jay's compensation has been consistent with company performance over the past year.


Management Age and Tenure

14.0yrs

Average Tenure

49yo

Average Age

Experienced Management: HT's management team is seasoned and experienced (14 years average tenure).


Board Age and Tenure

11.2yrs

Average Tenure

68.5yo

Average Age

Experienced Board: HT's board of directors are seasoned and experienced ( 11.2 years average tenure).


Insider Trading

Insider Buying: HT insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

SellUS$72,70027 Dec 19
Thomas Hutchison
EntityIndividual
Role
Member of the Board of Directors
Independent Trustee
Shares5,000
Max PriceUS$14.54
BuyUS$14,20012 Dec 19
Donald Landry
EntityIndividual
Role
Lead Director
Lead Independent Trustee
Shares1,000
Max PriceUS$14.20
BuyUS$50,05005 Dec 19
Neil Shah
EntityIndividual
Role
President
President & COO
Shares3,575
Max PriceUS$14.00
BuyUS$50,05005 Dec 19
Jay Shah
EntityIndividual
Role
Chief Executive Officer
CEO & Trustee
Shares3,575
Max PriceUS$14.00
SellUS$144,50020 Nov 19
Thomas Hutchison
EntityIndividual
Role
Member of the Board of Directors
Independent Trustee
Shares10,000
Max PriceUS$14.45
BuyUS$49,32913 Nov 19
Hasu Shah
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares3,500
Max PriceUS$14.09
BuyUS$13,50030 Sep 19
John Sabin
EntityIndividual
Role
Member of the Board of Directors
Independent Trustee
Shares900
Max PriceUS$15.00
BuyUS$49,88930 Aug 19
Hasu Shah
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares3,584
Max PriceUS$13.92
BuyUS$99,83127 Aug 19
Neil Shah
EntityIndividual
Role
President
President & COO
Shares7,285
Max PriceUS$13.87
BuyUS$99,95227 Aug 19
Jay Shah
EntityIndividual
Role
Chief Executive Officer
CEO & Trustee
Shares7,320
Max PriceUS$13.72
BuyUS$49,98106 Aug 19
Neil Shah
EntityIndividual
Role
President
President & COO
Shares3,440
Max PriceUS$14.53
BuyUS$75,22506 Aug 19
Jay Shah
EntityIndividual
Role
Chief Executive Officer
CEO & Trustee
Shares5,100
Max PriceUS$14.75
BuyUS$99,86326 Jun 19
Neil Shah
EntityIndividual
Role
President
President & COO
Shares6,060
Max PriceUS$16.57

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Hasu Shah (74yo)

    Executive Chairman

    • Tenure: 21.7yrs
    • Compensation: US$1.01m
  • Ashish Parikh (49yo)

    CFO & Assistant Secretary

    • Tenure: 21yrs
    • Compensation: US$2.34m
  • Neil Shah (45yo)

    President & COO

    • Tenure: 14yrs
    • Compensation: US$4.59m
  • Jay Shah (50yo)

    CEO & Trustee

    • Tenure: 14yrs
    • Compensation: US$4.67m
  • Michael Gillespie (46yo)

    Chief Accounting Officer

    • Tenure: 14.6yrs
    • Compensation: US$1.25m
  • William Walsh

    Senior Vice President of Asset Management

    • Bennett Thomas

      Senior Vice President of Finance & Sustainability

      • Tenure: 4.5yrs
    • Greg Costa

      Manager

      • Sandra Cardona

        Vice President Development & Capital Planning

        • Tenure: 2yrs
      • Stephanie Galli

        Senior VP & Corporate Counsel


        Board Members

        • Mike Leven (81yo)

          Independent Trustee

          • Tenure: 7.7yrs
          • Compensation: US$227.00k
        • Don Landry (70yo)

          Lead Independent Trustee

          • Tenure: 11yrs
          • Compensation: US$270.61k
        • Hasu Shah (74yo)

          Executive Chairman

          • Tenure: 21.7yrs
          • Compensation: US$1.01m
        • Dianna Morgan (67yo)

          Independent Trustee

          • Tenure: 9.8yrs
          • Compensation: US$234.50k
        • Tom Hutchison (77yo)

          Independent Trustee

          • Tenure: 11.3yrs
          • Compensation: US$281.55k
        • Jay Shah (50yo)

          CEO & Trustee

          • Tenure: 14yrs
          • Compensation: US$4.67m
        • Jackson Hsieh (58yo)

          Independent Trustee

          • Tenure: 2.6yrs
          • Compensation: US$244.17k
        • John Sabin (64yo)

          Independent Trustee

          • Tenure: 16.6yrs
          • Compensation: US$242.00k

        Company Information

        Hersha Hospitality Trust's company bio, employee growth, exchange listings and data sources


        Key Information

        • Name: Hersha Hospitality Trust
        • Ticker: HT
        • Exchange: NYSE
        • Founded: 1998
        • Industry: Hotel and Resort REITs
        • Sector: Real Estate
        • Implied Market Cap: US$591.892m
        • Market Cap: US$536.304m
        • Shares outstanding: 42.89m
        • Website: https://www.hersha.com

        Number of Employees


        Location

        • Hersha Hospitality Trust
        • 44 Hersha Drive
        • Harrisburg
        • Pennsylvania
        • 17102
        • United States

        Listings

        TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
        HTNYSE (New York Stock Exchange)YesClass A Common SharesUSUSDJan 1999
        H3U1DB (Deutsche Boerse AG)YesClass A Common SharesDEEURJan 1999
        HT.PRCNYSE (New York Stock Exchange)PFD SER C 6.875%USUSDFeb 2013
        HT.PRDNYSE (New York Stock Exchange)RED PFD SER DUSUSDMay 2016
        HT.PRENYSE (New York Stock Exchange)PFD CUM RED EUSUSDNov 2016

        Biography

        Hersha Hospitality Trust (HT) is a self-advised real estate investment trust in the hospitality sector, which owns and operates high quality upscale, luxury and lifestyle hotels in urban gateway markets and resort destinations. The Company's 48 hotels totaling 7,644 rooms are located in New York, Washington, DC, Boston, Philadelphia, South Florida and select markets on the West Coast. The Company's common shares are traded on The New York Stock Exchange under the ticker “HT”. 


        Company Analysis and Financial Data Status

        All financial data provided by Standard & Poor's Capital IQ.
        DataLast Updated (UTC time)
        Company Analysis2020/01/17 01:32
        End of Day Share Price2020/01/16 00:00
        Earnings2019/09/30
        Annual Earnings2018/12/31


        Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.