Hersha Hospitality 12b-25 12-31-2005
 

Commission File Number: 001-14765
CUSIP Number:  427825104
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
FORM 12b-25
 
NOTIFICATION OF LATE FILING
 
(Check One):
x Form 10-K        ¨ Form 20-F         ¨ Form 11-K       ¨ Form 10-Q
 
 
¨ Form N-SAR    ¨ Form N-CSR
 
For Period Ended:
 December 31, 2005
 
 
¨ Transition Report on Form 10-K
  
¨ Transition Report on Form 10-Q
  
 
¨ Transition Report on Form 20-F
  
¨ Transition Report on Form N-SAR
  
 
¨ Transition Report on Form 11-K
      
 

For the Transition Period Ended:
 
 
Read attached instruction sheet before preparing form. Please print or type.

Nothing in this form shall be construed to imply that the Commission has verified any information contained herein.
 
If the notification relates to a portion of the filing checked above, identify the Item(s) to which the notification relates:
 
 
PART I
REGISTRANT INFORMATION

Hersha Hospitality Trust
Full Name of Registrant
 
Former Name if Applicable
 
148 Sheraton Drive, Box A
Address of Principal Executive Office (Street and Number)
 
New Cumberland, PA 17070
City, State and Zip Code
 


PART II
RULE 12b-25(b) AND (c)

If the subject report could not be filed without unreasonable effort or expense and the registrant seeks relief pursuant to Rule 12b-25(b), the following should be completed. (Check box if appropriate.)
 

 
(a)
The reasons described in reasonable detail in Part III of this form could not be eliminated without unreasonable effort or expense;
 x
(b)
The subject annual report, semi-annual report, transition report on Form 10-K, Form 20-F, Form 11-K, Form N-SAR or Form N-CSR, or portion thereof will be filed on or before the fifteenth calendar day following the prescribed due date; or the subject quarterly report or transition report on Form 10-Q, or portion thereof will be filed on or before the fifth calendar day following the prescribed due date; and
 
(c)
The accountant’s statement or other exhibit required by Rule 12b-25(c) has been attached if applicable.

PART III
NARRATIVE

State below in reasonable detail the reasons why Forms 10-K, 20-F, 11-K, 10-Q, N-SAR, N-CSR, or the transition report portion thereof could not be filed within the prescribed time period. (Attach extra sheets if needed.)
 
Hersha Hospitality Trust (the “Company”) is unable to file with the Securities and Exchange Commission (the “SEC”) its Annual Report on Form 10-K for the year ended December 31, 2005 by the prescribed deadline, March 16, 2006. The Company is still in the process of finalizing the supporting documentation related to its consolidated financial statements, including such information related to several of the acquisitions completed during 2005. As a result, the Company is unable, without unreasonable effort and expense, to complete and file its Annual Report on Form 10-K for the year ended December 31, 2005 by the prescribed deadline. The Company expects to file its Annual Report on Form 10-K for the year ended December 31, 2005 on or before March 22, 2006.
 
PART IV
OTHER INFORMATION

(1)   Name and telephone number of person to contact in regard to this notification
 
 
Ashish R. Parikh
  
(215) 238-1046
 
(Name)
  
(Area Code) (Telephone Number)
 
(2)   Have all other periodic reports required under Section 13 or 15(d) of the Securities Exchange Act of 1934 or Section 30 of the Investment Company Act of 1940 during the preceding 12 months or for such shorter period that the registrant was required to file such report(s) been filed? If the answer is no, identify report(s).   x Yes     ¨ No
 
(3)   Is it anticipated that any significant change in results of operations from the corresponding period for the last fiscal year will be reflected by the earnings statement to be included in the subject report or portion thereof?   x Yes     o No
 
 
If so: attach an explanation of the anticipated change, both narratively and quantitatively, and, if appropriate, state the reasons why a reasonable estimate of the results cannot be made.
 
Hersha Hospitality Trust
(Name of Registrant as Specified in Charter)
 
Has caused this notification to be signed on its behalf by the undersigned hereunto duly authorized.
 
 Date
March 16, 2006
 
By:
/s/ Ashish R. Parikh
       
Ashish R. Parikh
       
Chief Financial Officer
 

Annex A
 
The Company anticipates that the consolidated financial statements included in its Annual Report on Form 10-K for the period ended December 31, 2005 will reflect a significant change in results of operations from the corresponding period for the last fiscal year, primarily as a result of the several acquisitions completed by the Company during the last fiscal year. The following table sets forth selected financial and operating data on a historical consolidated basis for the most recent fiscal year and four prior fiscal years to illustrate this change.
 
 
2005
  
2004
  
2003
  
2002
  
2001
  
                       
Revenue:
                     
Percentage Lease Revenues - HHMLP
  
$
-
  
$
1,192
  
$
10,144
  
$
9,846
  
$
9,360
  
Percentage Lease Revenues - Other
    
-
   
-
   
960
   
2,801
   
2,801
 
Hotel Operating Revenues
   
80,899
   
47,339
   
4,731
   
-
   
-
 
Total Revenue
   
80,899
   
48,531
   
15,835
   
12,647
   
12,161
 
Expenses:
                               
Hotel Operating Expenses
   
49,783
   
30,335
   
3,323
   
-
   
-
 
Land Lease - Related Party
   
-
   
-
   
-
   
-
   
13
 
Land Lease
   
433
   
504
   
50
   
-
   
-
 
Real Estate and Personal Property Taxes and Property Insurance
   
4,346
   
3,104
   
1,309
   
1,006
   
807
 
General and Administrative
   
4,992
   
3,190
   
671
   
554
   
532
 
Prepayment Penalties
   
-
   
-
   
116
   
-
   
-
 
Gain on Sale of Assets
   
-
   
-
   
-
   
-
   
(598
)
Unrecognized Loss on Derivatives
   
(13
)
  
62
   
-
   
-
   
-
 
Compensation Expense related to Option Redemption
   
-
   
-
   
1,307
   
-
   
-
 
Depreciation and Amortization
   
10,600
   
6,930
   
4,136
   
3,646
   
3,858
 
Total Expenses
   
70,141
   
44,125
   
10,912
   
5,206
   
4,612
 
Operating Income
   
10,758
   
4,406
   
4,923
   
7,441
   
7,549
 
Interest
   
359
   
241
   
86
   
7
   
32
 
Interest - Secured Loans Related Party
   
4,046
   
1,498
   
715
   
207
   
154
 
Intrest - Secured Loans
   
137
   
693
   
-
   
-
   
-
 
Other Revenue
   
520
   
176
   
8
   
-
   
-
 
Interest expense
   
(14,094
)
  
(6,167
)
  
(4,250
)
  
(4,396
)
  
(4,682
)
Interest expense - Related Party
   
-
   
-
   
(60
)
  
(60
)
  
(72
)
Income before income (loss) from Unconsolidated Joint Venture Investments, Distributions to Preferred Unitholders, Minority Interests and Discontinued Operations
   
1,726
   
847
   
1,422
   
3,199
   
2,981
 
Income (Loss) from Unconsolidated Joint Venture Investments
   
457
   
481
   
(24
)
  
-
   
-
 
Income Before Distribution to Preferred Unitholders, Minority Interest and Discontinued Operations
   
2,183
   
1,328
   
1,398
   
3,199
   
2,981
 
Distributions to Preferred Unitholders
   
-
   
499
   
1,195
   
-
   
-
 
Income Allocated to Minority Interest
   
-
   
105
   
104
   
2,675
   
2,342
 
Income Applicable to Common Shareholders before Discontinued Operations
   
2,183
   
724
   
99
   
524
   
639
 
Discontinued Operations:
                               
Gain on Sale of Discontinued Operations
   
1,161
   
-
   
-
   
449
   
-
 
Income from Discontinued Operations
   
(47
)
  
1,325
   
686
   
319
   
195
 
Net income
   
3,297
   
2,049
    
785
    
1,292
 
$
834
  
Preferred Distributions
    
1,920
   
-
   
-
   
-
   
-
 
Net Income applicable to Common Shareholders
  
$
1,377
  
$
2,049
  
$
785
  
$
1,292
  
$
834
  
Basic Earnings Per Common Share
  
$
0.07
  
$
0.13
  
$
0.17
  
$
0.51
  
$
0.37
  
Diluted Earnings Per Common Share
 
$
0.07
  
$
0.13
  
$
0.17
  
$
0.51
  
$
0.37
  
Dividends declared per Common Share
 
$
0.72
  
$
0.72
  
$
0.72
  
$
0.72
  
$
0.72
  

   
2005
  
2004
  
2003
  
2002
  
2001
  
Balance Sheet Data
                     
Net investment in hotel properties
 
$
317,980
  
$
163,923
  
$
121,076
  
$
93,814
  
$
88,100
  
Assets Held for Sale
 
$
3,407
  
$
18,758
  
$
-
  
$
-
  
$
-
  
Minority interest in Partnership
 
$
15,147
  
$
16,779
  
$
38,971
  
$
20,258
  
$
20,436
  
Shareholder's equity
 
$
164,703
  
$
119,792
  
$
71,460
  
$
11,378
  
$
10,210
  
Total assets
 
$
455,354
  
$
261,021
  
$
196,568
  
$
101,516
  
$
96,017
  
Total debt
 
$
256,146
  
$
97,761
  
$
71,837
  
$
65,341
  
$
61,535
  
Debt related to Assets Held for Sale
 
$
375
  
$
13,058
  
$
0
    
0
    
0
  
Other Data
                               
Funds from Operations
  
$
13,452
  
$
9,814
  
$
5,058
  
$
4,489
  
$
4,094
  
Net cash provided by operating activities
   
17,574
 
$
9,981
  
$
3,136
  
$
8,177
  
$
6,828
  
Net cash (used in) provided by investing activities
   
(123,849
)
$
(74,841
)
$
(58,370
)
$
(345
)
$
5,513
  
Net cash provided by (used in) financing activities
   
91,036
  $
46,605
 
$
94,134
  
$
(7,859
)
$
(12,174
)
Weighted average shares outstanding
                               
Basic
   
20,293,554
    
16,391,805
    
4,614,316
    
2,519,820
    
2,275,000
  
Diluted
   
20,335,181
    
16,391,805
    
4,614,316
    
2,519,820
    
2,275,000