Hersha Hospitality Makes Moves

Lodging REIT Hersha Hospitality (HT), which wisely suspended their common and preferred dividends last month, has announced further moves to strengthen their financials.

The company drew down an extra $100 million on their revolver. Additionally, and importantly, they negotiated waivers on their debt covenants for the next year.

These are very wise moves and give me confidence they can be a survivor.

The company press release is here.

14 thoughts on “Hersha Hospitality Makes Moves”

  1. Tim,

    I followed you on the Hersha Pref buy “hail mary play”…are you still long or thinking about adding?

  2. TWO just declared a div now will pay preferred div’s after suspending them previously. What a crock and manipulation

    1. It’s only a crock if you sold low. Good news for those who held or bought low. They’ve handled the situation well and have been showing signs of resurgence, though I didn’t expect it this soon.

      1. Exactly. Smart management on the part of TWO to take steps when needed and ease off if proven not necessary

    2. A few days ago, the media was reporting that private capital companies like Apollo were looking for access to the 500B slush fund. They apparently have contacts or have done business with Kushner before.

      Now, this morning Bloomberg is reporting that they are circling and sniffing around mortgage companies. I would not be surprised for them to be looking at hospitality firms (like Hersha) although that was not mentioned in the Bloomberg segment.

      Call me short sighted. No way, do I want to see these type of companies getting taxpayer bailouts particularly for them to buy other companies at distressed prices. I can see them making the argument that since they highly leverage, the 500B goes further with private capital BDC firms.

      Yes, we are in an era where we are going to see lots of manipulation like happened with TWO.

      Unfortunately, it will spread. The only question is where

      1. Expect many unintended consequences. Bureaucratic nightmares. Fights for money. Nepotism. Lawsuits. One solution causes other problems as if it were a game of whack-a-mole. And the eventual effect on the economy of creating all this money.

        Futures are rallying again because peak virus is in sight. It’s a fools rally. The bigger problem is the upcoming effect on the economy of the shutdown and the way it is being handled.

  3. what do you exactly mean by the revolver could you please be kind to explain? thank you very much

Leave a Reply

Your email address will not be published. Required fields are marked *