FINANCIAL IMPACT OF ESG

$24M in EarthView savings since inception

1.7 YEAR average payback period for our efficiency investments

$2M annual energy savings from operational protocols implemented by property teams

ENVIRONMENTAL

2022 Results

We continue to make significant strides toward reducing our greenhouse gas emissions in line with a 1.5°C future. We joined the Science Based Targets initiative and set an interim emissions reduction target for 2030, and we are developing our strategy to reach net-zero by 2050. See our Environmental section for more information on our targets and progress.

As business and leisure travel picked back up in 2022, our consumption increased, as reflected in our like-for-like metrics. We continue to progress toward our 2030 environmental targets, as seen in our overall reductions compared to a 2010 baseline.

EMISSIONS REDUCTION

32%
reduction per SF 2022 vs 2010

54% absolute reduction 2022 vs 2010

ENERGY REDUCTION

19%
reduction per SF 2022 vs 2010

1% like-for-like decrease per SF 2022 vs 2021

WATER REDUCTION

14%
reduction per SF 2022 vs 2010

6% like-for-like reduction per SF 2022 vs 2021

WASTE DIVERSION

SOCIAL

GOVERNANCE

Board of Trustees and Governance Information

8

Size of Board at Hersha,
6 Independent Board Trustees

ESG

Dedicated Risk & Environmental, Social, & Governance (ESG) Board Subcommittee

4

Board Meetings
Held in 2022

50%

Female and Minority Board Trustees

Yes

Separate Chair
and CEO

Yes

Independent
Lead Trustee

Yes

Code of Conduct for Trustees and Executive Officers

Our comprehensive Code of Ethics and Code of Conduct – including policies on human rights, labor rights, diversity, anti-harassment, formal grievance process, whistleblowers, non-retaliation, health & safety, and supplier code of conduct – are available in the Governance section of our Hersha website.

RESILIENCY & RISK

Our resiliency strategy includes continual evaluation of potential climate risks, the identification of mitigation strategies, and the ongoing monitoring and assessment of our progress. Hersha’s dedicated board-level Risk & ESG Subcommittee has a formal schedule for the consideration of climate-related risks and opportunities, as well as oversight of policies and operational controls of environmental, health and safety, and social risks.

NOAA FLOOD RISK SCORE

1.9 average portfolio risk,
vs. 2.8 average risk for US Lodging REITS*

(1-10, 1=low risk)

LEVEL OF NOAA FLOOD RISK

4% of properties by count at high risk
(as defined by NOAA), vs. an average 3% of US Lodging REITs’ properties are at high risk

*Hersha NOAA Hazard Score is collated from data by the National Oceanic Atmospheric Administration (NOAA), and peer risk score calculated from the Morgan Stanley report “Rising Flood Risk: How Much and at What Cost?” (3/2019). The NOAA Hazard Score takes into account flood risk as defined by FEMA, the Federal Emergency Management Agency.

AWARDS & RECOGNITION

Hersha has been recognized for our approach to driving positive environmental and community impact, both at a local and global scale. Some of the awards we’ve won include:

Overview-Award-GRESB-Public-Disclosure

Global Real Estate Sustainability Benchmark Public Disclosure – Hersha ranked #1 within the U.S. Hotel peer set

Overview-Award-Nareit-Leader-in-the-Light

NAREIT’s Leader in the Light (Lodging & Resorts sector) – Recognized four times for superior sustainability practices

Overview-Award-Newsweek

Hersha recognized by Newsweek as one of America’s Most Responsible Companies

Overview-Award-Crains-100-best-places-to-work

Hersha – Crain’s 2022 Best Places to Work in NYC

United Nations Sustainable Development Goals

We recognize that the United Nations Sustainable Development Goals (SDGs) are closely integrated and play vital roles in our communities and planet. To support both Hersha’s and the UN’s missions, we have prioritized the eight SDGs that most closely align with our business.

SDGS
SDGS

ABOUT HERSHA HOTELS AND RESORTS

Hersha owns and operates high quality hotels in urban gateway markets and regional resort destinations. Property and room counts below reflect Hersha’s portfolio as of year-end 2022.

OUR PROPERTIES

Our-Properties-hotels

25
hotels

Our-Properties-rooms

3,811
rooms

Our-Properties-bicoastal

Bi-Coastal
US portfolio

OUR VALUES

  • People Are Our Capability

  • Only Excellence

  • Hearts That Serve

  • Stay Nimble

  • Own It

OUR SUSTAINABILITY PROGRAM: EARTHVIEW

Started in 2010

Centered on a
triple-bottom-line

Leading program in
sustainable hospitality