Hersha Hospitality Trust Acquires the Annapolis Waterfront Hotel
April 03 2018 - 8:30AM
Hersha Hospitality Trust (NYSE:HT) (“Hersha” or the “Company”),
owner of high quality hotels in urban gateway markets and coastal
destinations, today announced the purchase of the 150-room
Annapolis Waterfront Hotel, an Autograph Collection Hotel, for
$41.5 million.
“We are pleased to acquire the Annapolis
Waterfront Hotel, expanding our Mid-Atlantic cluster, at an
attractive economic capitalization rate of 8.7% and 10.4x EBITDA
multiple. The location of the hotel in the pedestrian scale core of
the city is irreplaceable. The Hotel is situated on the
Harbor adjacent to the town square, the Annapolis Yacht Basin and
the Annapolis Yacht Club, at the base of Main Street’s restaurant
and bars. It is a short 3-block walk from the Main Gate of
the United States Naval Academy, all local tourism attractions and
demand generators. This unique waterfront location provides a
competitive advantage that enables the hotel to achieve strong
occupancies and premium rates in a high barrier-to-entry
marketplace,” stated Mr. Jay H. Shah, Hersha’s Chief Executive
Officer.
Mr. Shah continued, “We have been active on the
disposition front over the past two years, selling 19 mature,
stabilized hotels at an average economic capitalization rate of
5.9% and 15.1x EBITDA multiple. This acquisition allows us to
replace a significant portion of the EBITDA from our 2018 sales and
refinancing efforts. In addition to synergies from our
Washington DC hotels, we expect to leverage the capabilities
acquired at our 14 other independent and soft branded hotels to
drive performance and profitability and enhance the value of the
asset.”
The Annapolis Waterfront Hotel was converted to
an Autograph Collection in 2015 and is in close proximity to a
number of demand generators including the United States Naval
Academy, St. John’s College, the Maryland State House and the State
Capitol complex. The property boasts 15,000 square feet of
function space, half of which is allocated to the hotel’s outdoor
terrace, along with a leased waterside restaurant and bar. In
addition to the F&B lease, the asset also generates lease
income through onsite parking, slip rental fees and various antenna
leases.
The Company has posted a presentation of
supplemental information regarding the purchase of the Annapolis
Waterfront Hotel on its website at www.hersha.com in the Investor
Relations section under “Presentations”.
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 7,653 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
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,
including, without limitation, the Company’s ability to implement
its business strategies for The Annapolis Waterfront Hotel on the
terms and timing it expects, the Company’s forecasts of performance
and future yields for The Annapolis Waterfront Hotel, the Company’s
expectations for the long-term performance of the Annapolis market
and the risks associated with a lack of market knowledge or
understanding of the local economy, ability to forge new business
relationships and lack of experience with local government and
permitting procedures when entering a new market. 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, 2017 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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