Three Trends Driving Hersha's Growth

We're only a week away from the second annual Bisnow Lodging Investment Summit, where you'll hear from over 40 top-notch speakers like Hersha Hospitality Trust COO Neil Shah.He gave us a preview of what the REIT is focusing on.

1. Gateway Markets


Hersha is keeping its eye on urban gateway markets, including DC, Miami, New York, Philadelphia, Boston, and Los Angeles. Neil tells us that its presence in major Northeastern markets is strong, so it's looking forward to furtherpenetratingthe Miami and Southern California markets. (We hear it never rains in the latter.) Hersha's holdings are relatively young and concentrated in high-growthmarkets, so beyond acquisitions, it's focused on driving EBIDTA flow and growth from its existing portfolio, he says.

2. Transient Guests


Neil says Hersha's biz decisions are focused primarily around transient guests instead of groups. (That means short-stay guests, not rail-ridin' hobos of the 1930s.) And that's good for the REIT given more business travelers are gravitating toward select-service and independent boutiques. Above, Hersha's 93-room tower at the Cadillac Courtyard Miami Beach Oceanfront--debuting later this year--will have expanded fitness center, suites with balconies, and cabana-style meeting rooms. (Does that mean mojitos instead of coffee?)

3. International Travelers


Over the years, the company's explored expansion overseas, but now is "very confident that we can capture the growth of global markets while staying right here," Neil says. When the emerging middle class across the world travels, US destinations usually top their lists. (Who needs views of Paris or Bora Bora sunsets when you can overlook DC from the rooftop of The Graham in Georgetown, above, which opens this week.) Also debuting soon: the 178-room Hyatt Union Square New York in Manhattan and its first Independent Collection boutique in Boston--a line that includes TheGrahamand the recently renovated and renamed Capitol Hill Hotel in DC.

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