Hersha Hospitality Trust Announces the Refinancing of Seven New York City Hotels Owned in a Joint Venture With Cindat Capital...
February 12 2018 - 08:30AM
Hersha Hospitality Trust (NYSE:HT) (“Hersha” or the
“Company”), owner of high quality upscale hotels in urban gateway
markets and coastal destinations, today announced that it has
successfully refinanced the existing debt on seven assets in
Manhattan owned in an existing joint venture with Cindat Capital
Management Limited (“Cindat”), a global investment management
platform.
Mr. Jay H. Shah, Hersha’s Chief Executive
Officer, commented, “We are extremely pleased to have accessed the
capital markets at a very opportune time. Through this
refinancing we have lowered the weighted average cost of borrowing,
increased the duration of our debt and entered into a capital
structure that provides the joint venture significantly more
financial flexibility going forward. In addition, we have
also successfully redeemed all of our preferred equity in the joint
venture, providing Hersha with additional capital to pursue other
opportunities in our existing portfolio.”
The joint venture entered into a new $300
million mortgage loan and $85 million of mezzanine financing and
refinanced the prior $285 million aggregate senior loan and term
loan, the $50 million mezzanine loan and redeemed $43.2 million of
Hersha’s 9% cumulative redeemable preferred interest in the joint
venture.
Hunton & Williams LLP served as legal
counsel to Hersha on the transaction, while Sidley Austin LLP
served as legal counsel to Cindat.
***
Hersha Hospitality Trust (HT)
is a self-advised real estate investment trust in the hospitality
sector, which owns and operates high quality upscale hotels in
urban gateway markets and coastal destinations. The Company's 49
hotels totaling 7,584 rooms are located in New York, Washington,
DC, Boston, Philadelphia, South Florida and select markets on the
West Coast. The Company's common shares are traded on The New York
Stock Exchange under the ticker “HT”. For more information on
the Company, and the Company’s hotel portfolio, please visit the
Company's website at www.hersha.com
Contact: Ashish Parikh, Chief
Financial Officer
Greg Costa, Manager of Investor Relations &
Finance
Phone: (215) 238-1046
Cindat Capital Management Ltd. (Cindat) is a
global asset manager founded in 2013 with a mandate to guide and
safeguard institutional capital in cross-border investments in and
out of China. Since inception, it has invested over $1.8 billion of
equity capital in more than $7.8 billion worth of real
estate-related assets in the US, UK, Australia, and China. Cindat
is headquartered in Beijing, with offices in New York City, Los
Angeles, London and Shanghai. www.cindat.com
Contact: Cindat USA LLC, 375 Park
Avenue, 3703
Ryan Levine
212 471.9662
ryan.levine@cindat.com
Forward Looking Statement
This press release contains forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995, and, as such, may involve known and unknown
risks, uncertainties and other factors that may cause the actual
results or performance to differ from those reflected in the
forward-looking statement. For a description of these
factors, please review the information under the heading “Risk
Factors” included in Hersha Hospitality Trust’s filings with the
U.S. Securities and Exchange Commission Annual Report on Form 10-K
for the year ended December 31, 2016 and subsequent reports filed
by the Company with the Securities and Exchange Commission from
time to time.
Hersha Hospitality (NYSE:HT)
Historical Stock Chart
From Feb 2024 to Mar 2024
Hersha Hospitality (NYSE:HT)
Historical Stock Chart
From Mar 2023 to Mar 2024