Hersha Hospitality Trust Provides Additional Update on Portfolio Related to COVID-19

 - Amends Bank Credit Facility to Access $100 Million -
- Obtains Full Covenant Waiver through March 31, 2021 -

PHILADELPHIA, April 06, 2020 (GLOBE NEWSWIRE) -- Hersha Hospitality Trust (NYSE: HT) (“Hersha” or the “Company”), owner of high-quality upscale and lifestyle hotels in urban gateway markets and resort destinations, today announced additional actions taken to mitigate COVID-19’s impact on the Company and its operations. At our portfolio hotels these above-property and on-property measures include but are not limited to:

• Amending the existing Bank Credit Facility and Borrowing Base of Assets to access an additional $100 million on the Company’s $250 million Senior Revolving Line of Credit
• Successfully amending our Bank Credit Facility to obtain waivers on all financial covenants through March 31, 2021 yielding additional operational and financial flexibility
• No changes to the interest rate on the amended credit facility
• Corporate level cost containment resulting in more than 25% savings in SG&A expenses
• Working closely with our hotel operating partners to significantly reduce operating expenses over the immediate period through on-site expense cuts
• Implementing asset management initiatives at all properties to eliminate contract services, vendor and outsource contracts, utility usage, and purchasing expenses resulting in near-term and long-term cash savings
• Where feasible, seeking alternative sources of hotel revenue through government agencies, law enforcement and military personnel, emergency first responders and medical personnel, and universities
• Exploring the potential to recoup losses through insurance claims
• Submitting loan applications for each portfolio hotel for grants and low-cost unsecured financing from the Paycheck Protection Program under the recently passed CARES Act

“We appreciate the continued support from our bank group during a time with no adequate comparison. The funds from our line of credit will provide the necessary support to meet the ongoing operational needs of our hotels into next year under a severely disrupted scenario. Additionally, the 12-month covenant holiday allows for the operational and financial flexibility that is critical during this uncertain time and reflects an acknowledgement of the inherent value of our high-quality hotel portfolio. In further efforts to enhance our liquidity profile, we are working on mutually agreed upon extensions with the buyers of the previously announced sales agreements. We have hard deposits on these transactions and anticipate these sales to close by the end of the third quarter,” stated Mr. Jay H. Shah, Hersha’s Chief Executive Officer.