Hersha Hospitality announces new $100M share repurchase program
Hersha Hospitality Trust announced that its Board of Trustees authorized a new share repurchase program of up to $100M of the company's outstanding common shares. This new program will commence upon completion of the company's existing $100M share repurchase program, of which approximately $23.1M remains available for repurchases of the company's outstanding common shares through the end of 2016. The company expects to complete the new repurchase program prior to December 31, 2017, unless extended by the Board of Trustees. "The Company is on track to successfully dispose over $825M of stabilized hotels this year. Our ability to execute these sales has provided the Company tremendous financial flexibility to acquire assets, de-lever and undertake additional share repurchases. The new $100 million share repurchase program underscores confidence in our young, differentiated and high-quality hotel portfolio, in addition to driving returns to our shareholders. We believe opportunistic share buybacks are an attractive use of available capital and a driver of share value when the share price is temporarily dislocated and at a material discount to our net asset value. Since 2014, we have repurchased $192.2M of our common shares, representing approximately 20% of common shares outstanding. We intend to continue opportunistic share repurchases throughout the year to take advantage of capital market dislocations, remaining steadfast to our sustained and unique value creation philosophy and commitment to driving total shareholder returns," stated Jay H. Shah, Hersha's CEO.