Hersha Hospitality Trust Sells Hampton Inn Financial District for $32.4 Million
March 14 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 sale of the 81-room Hampton Inn
Financial District for $32.4 million.
“This transaction highlights Hersha’s ability to
successfully execute accretive dispositions and upgrade the
portfolio with higher growth hotels in our core markets.
While we remain bullish on the Manhattan lodging market, this was
an opportunistic sale, representing a trailing twelve-month
economic capitalization rate of 4.4% and a hotel EBITDA multiple of
19.8x. Our capital recycling program over the past two years
has proven to be extremely successful and during that time, we have
sold 19 mature, stabilized hotels for $900 million at an average
economic capitalization rate of 5.9% and 15.1x EBITDA
multiple. Proceeds from this sale were utilized to fund our
share repurchase program and pay down our Term loans by $18
million,” stated Mr. Jay H. Shah, Hersha’s Chief Executive
Officer.
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 48
hotels totaling 7,503 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
Solid Rock Advisors advised Hersha on the
sale.
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. 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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