Hersha Hotels and Resorts Announces Dividend Classification for 2023
PHILADELPHIA, Dec. 26, 2023 (GLOBE NEWSWIRE) -- Hersha Hotels and Resorts ("Hersha" or "the Company"), owner of luxury and lifestyle hotels in coastal gateway and resort markets, today announced the tax classification of Hersha Hospitality Trust's ("HHT") Priority Class A Common Share ("Common Shares"), Series C Cumulative Redeemable Preferred Share ("Series C Preferred Shares"), Series D Cumulative Redeemable Preferred Share ("Series D Preferred Shares") and Series E Cumulative Redeemable Preferred Share ("Series E Preferred Shares") distributions for 2023 for Federal income tax reporting purposes. The tax information provided below relates to HHT prior to the November 28, 2023 merger between HHT and 1776 Portfolio REIT Merger Sub, LLC ("REIT Merger Sub") pursuant to that certain Agreement and Plan of Merger, dated as of August 27, 2023, by and among HHT, REIT Merger Sub and the other parties thereto, and it should not be construed as tax advice and is not a substitute for careful tax planning and analysis. Shareholders should consult their tax advisors as to the tax treatment of the distributions.
| CLASS A COMMON SHARES | |||||||||||||||||||||||||||||||||||
| Record Dates | Paid Dates | Total Cash Distribution Per Share | Taxable Ordinary Income | Total Capital Gain Distribution | Unrecaptured Sec. 1250 Gain | Cash Liquidation Distribution | Nontaxable Distribution (Return of Capital)* | Section 199A Dividends | Section 897 Ordinary Dividends | Section 897 Capital Gain | Section 1061 One-Year Capital Gain** | Section 1061 Three-Year Capital Gain** | |||||||||||||||||||||||
| 3/31/2023 | 4/17/2023 | $ | 0.050000 | $ | - | $ | 0.050000 | $ | 0.050000 | $ | - | $ | - | $ | - | $ | - | $ | 0.050000 | $ | - | $ | 0.050000 | ||||||||||||
| 6/30/2023 | 7/17/2023 | $ | 0.050000 | $ | - | $ | 0.050000 | $ | 0.050000 | $ | - | $ | - | $ | - | $ | - | $ | 0.050000 | $ | - | $ | 0.050000 | ||||||||||||
| 9/29/2023 | 10/16/2023 | $ | 0.050000 | $ | - | $ | 0.050000 | $ | 0.050000 | $ | - | $ | - | $ | - | $ | - | $ | 0.050000 | $ | - | $ | 0.050000 | ||||||||||||
| 11/28/2023 | 11/28/2023 | $ | 10.000000 | $ | - | $ | - | $ | - | $ | 10.000000 | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||
| TOTAL | $ | 10.150000 | $ | - | $ | 0.150000 | $ | 0.150000 | $ | 10.000000 | $ | - | $ | - | $ | - | $ | 0.150000 | $ | - | $ | 0.150000 | |||||||||||||
| The CUSIP number for Hersha Hospitality Trust's Common Shares is 427825500. | |||||||||||||||||||||||||||||||||||
| On November 28, 2023, Hersha Hospitality Trust redeemed all of its issued and outstanding shares of Priority Class A Common Shares. The Priority Class A Common Shares were redeemed at a per share redemption price of $10.00. | |||||||||||||||||||||||||||||||||||
| SERIES C PREFERRED SHARES | |||||||||||||||||||||||||||||||||||
| Record Dates | Paid Dates | Total Cash Distribution Per Share | Taxable Ordinary Income | Total Capital Gain Distribution | Unrecaptured Sec. 1250 Gain | Nontaxable Distribution (Return of Capital)* | Nontaxable Distribution (Return of Capital)* | Section 199A Dividends | Section 897 Ordinary Dividends | Section 897 Capital Gain | Section 1061 One-Year Capital Gain** | Section 1061 Three-Year Capital Gain** | |||||||||||||||||||||||
| 4/1/2023 | 4/17/2023 | $ | 0.429700 | $ | - | $ | 0.429700 | $ | 0.429700 | $ | - | $ | - | $ | - | $ | - | $ | 0.429700 | $ | - | $ | 0.429700 | ||||||||||||
| 7/1/2023 | 7/17/2023 | $ | 0.429700 | $ | - | $ | 0.429700 | $ | 0.429700 | $ | - | $ | - | $ | - | $ | - | $ | 0.429700 | $ | - | $ | 0.429700 | ||||||||||||
| 10/1/2023 | 10/16/2023 | $ | 0.429700 | $ | - | $ | 0.429700 | $ | 0.429700 | $ | - | $ | - | $ | - | $ | - | $ | 0.429700 | $ | - | $ | 0.429700 | ||||||||||||
| 11/28/2023 | 11/28/2023 | $ | 0.210076 | $ | - | $ | 0.210076 | $ | 0.210076 | $ | - | $ | - | $ | - | $ | - | $ | 0.210076 | $ | - | $ | 0.210076 | ||||||||||||
| 11/28/2023 | 11/28/2023 | $ | 25.000000 | $ | - | $ | - | $ | - | $ | 25.000000 | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||
| TOTAL | $ | 26.499176 | $ | - | $ | 1.499176 | $ | 1.499176 | $ | 25.000000 | $ | - | $ | - | $ | - | $ | 1.499176 | $ | - | $ | 1.499176 | |||||||||||||
| The CUSIP number for Hersha Hospitality Trust's Series C Preferred Shares is 427825401 | |||||||||||||||||||||||||||||||||||
| On November 28, 2023, Hersha Hospitality Trust redeemed all of its issued and outstanding shares of Series C Cumulative Redeemable Preferred Stock. The Series C Preferred Shares were redeemed at a per share redemption price of $25.00 together with the accrued and unpaid dividends to the redemption date for an aggregate per share redemption price of $25.210076. | |||||||||||||||||||||||||||||||||||
| SERIES D PREFERRED SHARES | |||||||||||||||||||||||||||||||||||
| Record Dates | Paid Dates | Total Cash Distribution Per Share | Taxable Ordinary Income | Total Capital Gain Distribution | Unrecaptured Sec. 1250 Gain | Nontaxable Distribution (Return of Capital)* | Nontaxable Distribution (Return of Capital)* | Section 199A Dividends | Section 897 Ordinary Dividends | Section 897 Capital Gain | Section 1061 One-Year Capital Gain** | Section 1061 Three-Year Capital Gain** | |||||||||||||||||||||||
| 4/1/2023 | 4/17/2023 | $ | 0.406250 | $ | - | $ | 0.406250 | $ | 0.406250 | $ | - | $ | - | $ | - | $ | - | $ | 0.406250 | $ | - | $ | 0.406250 | ||||||||||||
| 7/1/2023 | 7/17/2023 | $ | 0.406250 | $ | - | $ | 0.406250 | $ | 0.406250 | $ | - | $ | - | $ | - | $ | - | $ | 0.406250 | $ | - | $ | 0.406250 | ||||||||||||
| 10/1/2023 | 10/16/2023 | $ | 0.406250 | $ | - | $ | 0.406250 | $ | 0.406250 | $ | - | $ | - | $ | - | $ | - | $ | 0.406250 | $ | - | $ | 0.406250 | ||||||||||||
| 11/28/2023 | 11/28/2023 | $ | 0.198611 | $ | - | $ | 0.198611 | $ | 0.198611 | $ | - | $ | - | $ | - | $ | - | $ | 0.198611 | $ | - | $ | 0.198611 | ||||||||||||
| 11/28/2023 | 11/28/2023 | $ | 25.000000 | $ | - | $ | - | $ | - | $ | 25.000000 | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||
| TOTAL | $ | 26.417361 | $ | - | $ | 1.417361 | $ | 1.417361 | $ | 25.000000 | $ | - | $ | - | $ | - | $ | 1.417361 | $ | - | $ | 1.417361 | |||||||||||||
| The CUSIP number for Hersha Hospitality Trust's Series D Preferred Shares is 427825609 | |||||||||||||||||||||||||||||||||||
| On November 28, 2023, Hersha Hospitality Trust redeemed all of its issued and outstanding shares of Series D Cumulative Redeemable Preferred Stock. The Series D Preferred Shares were redeemed at a per share redemption price of $25.00 together with the accrued and unpaid dividends to the redemption date for an aggregate per share redemption price of $25.198611. | |||||||||||||||||||||||||||||||||||
| SERIES E PREFERRED SHARES | |||||||||||||||||||||||||||||||||||
| Record Dates | Paid Dates | Total Cash Distribution Per Share | Taxable Ordinary Income | Total Capital Gain Distribution | Unrecaptured Sec. 1250 Gain | Nontaxable Distribution (Return of Capital)* | Nontaxable Distribution (Return of Capital)* | Section 199A Dividends | Section 897 Ordinary Dividends | Section 897 Capital Gain | Section 1061 One-Year Capital Gain** | Section 1061 Three-Year Capital Gain** | |||||||||||||||||||||||
| 4/1/2023 | 4/17/2023 | $ | 0.406250 | $ | - | $ | 0.406250 | $ | 0.406250 | $ | - | $ | - | $ | - | $ | - | $ | 0.406250 | $ | - | $ | 0.406250 | ||||||||||||
| 7/1/2023 | 7/17/2023 | $ | 0.406250 | $ | - | $ | 0.406250 | $ | 0.406250 | $ | - | $ | - | $ | - | $ | - | $ | 0.406250 | $ | - | $ | 0.406250 | ||||||||||||
| 10/1/2023 | 10/16/2023 | $ | 0.406250 | $ | - | $ | 0.406250 | $ | 0.406250 | $ | - | $ | - | $ | - | $ | - | $ | 0.406250 | $ | - | $ | 0.406250 | ||||||||||||
| 11/28/2023 | 11/28/2023 | $ | 0.198611 | $ | - | $ | 0.198611 | $ | 0.198611 | $ | - | $ | - | $ | - | $ | - | $ | 0.198611 | $ | - | $ | 0.198611 | ||||||||||||
| 11/28/2023 | 11/28/2023 | $ | 25.000000 | $ | - | $ | - | $ | - | $ | 25.000000 | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||
| TOTAL | $ | 26.417361 | $ | - | $ | 1.417361 | $ | 1.417361 | $ | 25.000000 | $ | - | $ | - | $ | - | $ | 1.417361 | $ | - | $ | 1.417361 | |||||||||||||
| The CUSIP number for Hersha Hospitality Trust's Series E Preferred Shares is 427825708 | |||||||||||||||||||||||||||||||||||
| On November 28, 2023, Hersha Hospitality Trust redeemed all of its issued and outstanding shares of Series E Cumulative Redeemable Preferred Stock. The Series E Preferred Shares were redeemed at a per share redemption price of $25.00 together with the accrued and unpaid dividends to the redemption date for an aggregate per share redemption price of $25.198611. | |||||||||||||||||||||||||||||||||||
| * Distributions will reduce a shareholder's adjusted tax basis in its shares. Any amount of the distribution that exceeds a shareholder's adjusted tax basis in its shares will be treated as gain from the sale or exchange of property. | |||||||||||||||||||||||||||||||||||
| ** Additional Information Pursuant to Treasury Regulation §1.1061-6(c): The total Box 2a capital gain distributions are Section 1231 gains and therefore are not taken into account for purposes of section 1061 under Reg. 1.1061-4(b)(7)(i). | |||||||||||||||||||||||||||||||||||
Hersha Hotels and Resorts owns and operates luxury and lifestyle hotels in coastal gateway and resort markets. The Company's 23 hotels totaling 3,572 rooms are located in New York, Washington, DC, Boston, Philadelphia, South Florida, and California. For more information on the Company, and the Company's hotel portfolio, please visit the Company's website at www.hersha.com.
Contact: Michael Gillespie, Chief Accounting Officer
Phone: (717) 236-4400
