O’keefe Stevens Advisory, an investment advisory firm, released its third-quarter 2023 investor letter. A copy of the same can be downloaded here. Although the major indices have posted positive gains for the year, this performance has been largely driven by a select group of stocks known as the “magnificent seven.” At the end of Q3, the fund’s top 5 holdings comprised approximately 27% of assets, a decrease from 35% at the end of Q2. In addition, please check the fund’s top five holdings to know its best picks in 2023.
O’keefe Stevens Advisory highlighted stocks like Hersha Hospitality Trust (NYSE:HT) in the third quarter 2023 investor letter. Hersha Hospitality Trust (NYSE:HT) is a self-advised real estate investment trust in the hospitality sector. On November 17, 2023, Hersha Hospitality Trust (NYSE:HT) stock closed at $9.92 per share. One-month return of Hersha Hospitality Trust (NYSE:HT) was 0.25%, and its shares gained 4.03% of their value over the last 52 weeks. Hersha Hospitality Trust (NYSE:HT) has a market capitalization of $478.295 million.
O’keefe Stevens Advisory made the following comment about Hersha Hospitality Trust (NYSE:HT) in its Q3 2023 investor letter:
“During the quarter, one notable event occurred. Hersha Hospitality Trust (NYSE:HT) announced they are selling to KSL Capital Partners for $10 in an all-cash transaction, valuing Hersha at $1.4B. While the 60% premium is a nice short-term gain, Hersha has been a poor investment for several years. Even with the surge in travel post covid, I suspect the sudden and dramatic rise in interest rates forced management’s hand.
In 2023, Hersha had $92.5m in debt maturing, of which ~50% was fixed at 4.45%. In 2024-2025, $414m of debt matured with a weighted average interest rate of 3.93%. First, the assumption that they could refinance the debt was in question. The company has operated at a loss (Net Income) over the past four years. The 4.19% weighted average interest rate on the fixed-rate debt would likely double when they refinanced. The $27m of interest from the credit facility and term loan were likely headed north of $50m. It would have been a game of extend and pretend, hoping rates would one day fall back to a serviceable level…” (Click here to read the full text)
A sweeping aerial view of a hospitality service lodge nestled atop a lush hillside.
Hersha Hospitality Trust (NYSE:HT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 17 hedge fund portfolios held Hersha Hospitality Trust (NYSE:HT) at the end of second quarter which was 21 in the previous quarter.
We discussed Hersha Hospitality Trust (NYSE:HT) in another article and shared the list of stocks receiving a massive vote of approval from Wall Street analysts. In addition, please check out our hedge fund investor letters Q3 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
