PHILADELPHIA--(BUSINESS WIRE)--Hersha Hospitality Trust (NYSE: HT) (“Hersha” or the “Company”), owner of upscale hotels in urban gateway markets, today announced that its Board of Trustees declared a cash dividend of $0.4297 per Series C Preferred Share, and $0.40625 per Series D Preferred Share for the fourth quarter ending December 31, 2016, and $0.30694 per Series E Preferred Share prorated for the partial fourth quarter ending December 31, 2016. The preferred share dividends are payable January 17, 2017 to holders of record as of January 1, 2017.
The Board of Trustees also declared cash dividends totaling $0.48 per common share and per limited partnership unit, consisting of a quarterly dividend of $0.28 per common share and limited partnership unit for the fourth quarter ending December 31, 2016, and an additional special dividend of $0.20 per common share and limited partnership unit. These common share dividends and limited partnership unit distributions are payable January 17, 2017 to holders of record as of January 5, 2017.
“Across 2016 we have capitalized on demand from international and domestic capital sources seeking cash flowing real estate in U.S. gateway and suburban markets, and by early 2017, we expect to have sold 16 stabilized hotels for an aggregate sales price that exceeds $825 million, generating approximately $550 million in net proceeds. The Company’s successful disposition program resulted in approximately $268 million of taxable gains in 2016, the majority of which we offset through section 1031 exchange transactions and re-deployed into higher growth hotels in valuable coastal gateway markets. Given the large gains associated with our transformative asset sales, we have elected to pay a special dividend of $0.20 per common share, in addition to the significant capital we recycled into new hotel investments. We believe the Company’s dividend policy, opportunistic share buybacks and today’s special dividend are a testament to our total return philosophy, as well as our steadfast commitment to return capital to shareholders,” stated Mr. Jay H. Shah, Hersha’s Chief Executive Officer.
Hersha Hospitality Trust (HT) is a self-advised real estate investment trust in the hospitality sector, which owns and operates high quality upscale hotels in urban gateway markets. The Company's 55 hotels totaling 8,800 rooms are located in New York, Washington, DC, Boston, Philadelphia, Miami and select markets on the West Coast. The Company's common shares are traded on The New York Stock Exchange under the ticker “HT”.
Forward Looking Statement
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, and, as such, may involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance to differ from those reflected in the forward-looking statement. These forward looking statements may include statements related to, among other things, the Company’s ability to execute on its planned acquisitions and dispositions on the terms it expects, if at all. For a description of these factors, please review the information under the heading “Risk Factors” included in Hersha Hospitality Trust’s Annual Report on Form 10-K for the year ended December 31, 2015 and subsequent reports filed with the U.S. Securities Exchange Commission