Hersha Hospitality Trust Announces the Disposition of Two Non-Core Hotels
February 21 2018 - 4:10PM
Hersha Hospitality Trust (NYSE:HT) (“Hersha” or the “Company”),
owner of high quality hotels in urban gateway markets and coastal
destinations, today announced the sale of the Hyatt House in
Gaithersburg, MD for $19.0 million and the Holiday Inn Express in
Chester, NY for $8.4 million.
“We are pleased to announce the sale of these
two non-core hotels as we continue to execute our business plan,
selling older, suburban assets to focus our portfolio on younger,
higher growth hotels in gateway markets and coastal
destinations. The sale price represents a blended trailing
twelve-month economic capitalization rate of 4.9% and a hotel
EBITDA multiple of 16.8x. We re-deployed the proceeds of this
sale in repurchases of our stock at a deep discount to private
market value,” stated Mr. Jay H. Shah, Hersha’s Chief Executive
Officer.
The sale resulted in taxable gains approximating
$3.2 million. During the fourth quarter 2017, the Company
repurchased $30.4 million of its stock or 1.7 million common shares
on the open market. Since 2014, Hersha has repurchased $232.3
million in common shares, representing 21.8% of the float.
Hersha Hospitality Trust (HT)
is a self-advised real estate investment trust in the hospitality
sector that owns and operates high quality hotels in gateway
markets and coastal destinations. The Company's 49 hotels totaling
7,584 rooms are located in New York, Washington, DC, Boston,
Philadelphia, Miami 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.
Forward Looking StatementThis 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, including the
completion of the sale of the Hyatt House in Gaithersburg,
MD. 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.
Contact: Ashish Parikh, Chief Financial
OfficerGreg Costa, Manager of Investor Relations &
FinancePhone: (215) 238-1046
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