PHILADELPHIA, March 14, 2018 (GLOBE NEWSWIRE) — 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 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, 2017 and subsequent reports filed by the Company with the Securities and Exchange Commission from time to time.
Contact: Ashish Parikh, Chief Financial Officer
Greg Costa, Manager of Investor Relations & Finance
Phone: (215) 238-1046