Hersha Hospitality Trust : HT Investor Presentation - September 2022

I N V E S T O R P R E S E N TAT I O N

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S A N C T U A R Y B E A C H R E S O R T

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L O D G I N G R E C O V E R Y

I N V E S T M E N T T H E S I S

C O R E M A R K E T D R I V E R S

S U S T A I N A B I L I T Y

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ANNAPOLIS WATERFRONT HOTEL

LODGING RECOVERY

T H E E N V O Y H O T E L

P O R T F O L I O R E C O V E R Y C O N T I N U E S T H R O U G H J U N E

JULY - CONTINUED PRICING POWER WITH NORMALIZATION OF SEASONALITY

• Our resort portfolio has maintained rate integrity, with July ADR of $299 up 28% vs. July 2019 in a seasonally slower month for our Resorts
• Non-ResortPortfolio posted 5.7% ADR growth compared to 2019

AUGUST- STREAMLINED PORTFOLIO PERFORMING AT PRE-COVID LEVELS

• August comparable ADR outpaced 2019 levels by 16%, with 8.5% growth in our Non-Resort markets, led by Washington D.C. up 34% compared to 2019
• Philadelphia and Boston posted 6% and 3% weekday Occupancy growth over the prior month, respectively
• Driven by continued pricing power, August comparable RevPAR reached 2019 levels; a trend we anticipate to accelerate as Q4 is seasonally the strongest quarter for our New York market and much stronger than Q2 and Q3 in South Florida

				2022 COMPARABLE REVPAR VS 2019
$250						$222	$224				120%
			$208
			$194					$192	$192	100%
$200
					101%		100%
	$149		94%				80%
$150
	$114
										60%
$100	77%										40%
$50											20%
$0											0%
	Jan	Feb	Mar	Apr	May		Jun	Jul	Aug Fcst
				2019 RevPAR	2022 RevPAR	% of 2019

Note: Comparable portfolio includes 23 hotels and excludes Hotel Milo, Pan Pacific, the 7 Urban Select Service assets and 6 2021 dispositions from all periods. Also excludes Gate JFK as the hotel is closed for renovations and currently held for sale	4

C O N T I N U E D P R O P E R T Y C A S H F L O W G R O W T H

STABILIZED CASH FLOW GROWTH CONTINUES THROUGH 2022

• Cash flow improved significantly in Q2 to $46.4M for the quarter, more than double the prior quarter
• Non-ResortEBITDA contribution of 67% for the quarter increased sequentially from 59% in April to 72% in June
• July and August cash flow production aligned with seasonal expectation, significantly outperforming prior year with August 2022 reflecting the close of 6 of the USS-7 properties

TOTAL PROPERTY CASH FLOW

												$15.4	$15.5	$15.5
											$12.1				$12.7
						$10.9
			$10.0				$9.7
														$9.6
							$8.8
		$7.7		$7.7	$7.7
	$6.8						$7.1
$3.8									$3.8
Apr	May	Jun	July	Aug	Sep	Oct	Nov	Dec	Jan '22	Feb '22	Mar '22	Apr '22	May '22	Jun '22	Jul'22	Aug'22 F
	Q2'21 $18.3			Q3'21 $25.4			Q4'21 $29.4			Q1'22 $23.0	Q2'22 $46.4		Jul - Aug'23F
									$22.3

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