Post Earnings Coverage as Hospitality Properties Trust’s Quarterly Revenue Grew 3%

Upcoming AWS Coverage on EPR Properties Post-Earnings Results

LONDON, UK / ACCESSWIRE / May 30, 2017 / Active Wall St. announces its post-earnings coverage on New York headquartered Hospitality Properties Trust (NASDAQ: HPT) (“HPT”). The Company reported its first quarter fiscal 2017 financial results on May 10, 2017. The real estate investment trust that primarily invests in hotel and travel centers outperformed earnings expectations. Register with us now for your free membership at: http://www.activewallst.com/register/.

One of Hospitality Properties Trust’s competitors within the REIT – Retail space, EPR Properties (NYSE: EPR), reported on May 02, 2017, its operating results for Q1 ended March 31, 2017. AWS will be initiating a research report on EPR Properties in the coming days.

Today, AWS is promoting its earnings coverage on HPT; touching on EPR. Get our free coverage by signing up to:
http://www.activewallst.com/register/.

Earnings Reviewed

HPT disclosed total revenue of $ 488.60 million for Q1 2017 compared to revenue of $ 474.12 million in Q1 2016. The Company’s revenue numbers lagged behind analysts’ consensus of $495.70 million.

For Q1 2017, HPT’s 302 hotels that were owned continuously since January 01, 2016, average daily rate (ADR) increased 0.9% to $125.03; occupancy increased 0.1% to 71.5%; and revenue per available room (RevPAR) increased 1.0% to $89.40 compared to the year ago same period. For Q1 2017, HPT’s adjusted EBITDA increased 3.7% on a y-o-y basis to $194.6 million.

HPT’s net income available for common shareholders for the quarter ended March 31, 2017, was $25.8 million, or $0.16 per diluted share, compared to net income available for common shareholders of $46.9 million, or $0.31 per diluted share, for Q1 2016. On an adjusted basis, HPT reported $ 148.81 million, or $091 per share. The Company’s earnings surpassed Wall Street’s expectations of $0.28 per share.

HPT’s normalized FFO available for common shareholders for Q1 2017 was $148.8 million, or $0.91 per diluted share, compared to normalized FFO available for common shareholders of $140.2 million, or $0.93 per diluted share, for Q1 2016.

Property Acquisition Activities

In February 2017, HPT acquired the 483 room Hotel Allegro in Chicago, IL for a purchase price of $85.5 million, excluding acquisition related costs. HPT added this Kimpton branded hotel to its management agreement with InterContinental Hotels Group, PLC. In March 2017, HPT bought the 121 room Hotel Alexis in Seattle, WA for an acquisition price of $71.6 million, excluding acquisition related costs. Also in March 2017, HPT entered into an agreement to acquire the 389 room Chase Park Plaza hotel located in St. Louis, MO, for a purchase price of $87.8 million, excluding acquisition related costs. HPT currently expects to complete this acquisition during Q2 2017. The Company plans to re-brand this hotel to the Royal Sonesta hotel brand and add it to its management agreement with Sonesta International Hotels Corporation, or Sonesta.

Financing Activities

In January 2017, HPT issued $600.0 million aggregate principal amount of senior notes in underwritten public offerings, which included $200.0 million aggregate principal amount of 4.500% unsecured senior notes due 2023 and $400.0 million aggregate principal amount of 4.950% unsecured senior notes due 2027. The Company used the proceeds of $593.3 million, after discounts and offering expenses to repay amounts outstanding under its revolving credit facility, to redeem, all of HPT’s 11.6 million outstanding 7.125% Series D cumulative redeemable preferred shares for $25.00 per share plus accrued and unpaid dividends (an aggregate of $291.4 million) and for general business purposes.

In March 2017, HPT repurchased at par, plus accrued and unpaid interest $8.4 million of the principal amount of its outstanding 3.80% convertible senior notes due 2027 which were tendered by the noteholders for repurchase by HPT.

Tenants and Managers

As of March 31, 2017, HPT had nine operating agreements with seven hotel operating companies for 308 hotels with 47,187 rooms, which represented 65% of HPT’s total annual minimum returns and rents, and five lease agreements with one travel center operating Company for 198 travel centers, which represented 35% of HPT’s total annual minimum returns and rents.

Stock Performance

At the close of trading session on Friday, May 26, 2017, Hospitality Properties Trust’s stock price slightly declined 0.24% to end the day at $28.96. A total volume of 352.44 thousand shares were exchanged during the session. In the last six months and previous twelve months, shares of the Company have surged 0.07% and 13.39%, respectively. The Company’s shares are trading at a PE ratio of 25.31 and have a dividend yield of 7.18%. The stock currently has a market cap of $4.77 billion.

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