The second quarter saw big gains in profitability for the REITs Chesapeake Lodging Trust and Hersha Hospitality Trust, while Strategic Hotels & Resorts emerged from under red ink.
Chesapeake Lodging, Annapolis, Maryland, saw net income increase to US$2 million in the second quarter in 2011 from US$1.3 million during the same period in 2010. As the hotel doubled its portfolio to 10 in the second quarter it saw total revenue more than triple year-on-year from US$11.8 million to US$40 million.
“The five hotels that we owned for the full second quarter performed exceptionally well, with pro forma RevPAR increasing 11.4%,” said James Francis, president and CEO at Chesapeake Lodging.
A full report on the company’s earnings can be read here.
Hersha Hospitality, Philadelphia, more than doubled its net income to US$6.6 in the second quarter from US$3.2 during the same period in 2010. RevPAR jumped up 9.4% and average daily rate 8.9% year-on-year.
“The portfolio’s occupancy levels are approaching our historical peaks and have allowed us to strategically focus on pushing average daily rate,” said Jay Shah, Hersha Hospitality CEO.
A full report on the company’s earnings can be read here.
After posting US$35 million loss in the first quarter of 2011, Strategic Hotels & Resorts, Chicago, was able to return to profitability in the second quarter with US$39 million in net income, a large increase from the trust’s US$47 million loss in 2Q 2010.
“This quarter saw the culmination of our aggressive and well-timed debt refinancing strategy,” said Laurence Geller, Strategic Hotels & CEO.
A full report on the company’s earnings can be read here.