PHILADELPHIA, March 14, 2018 — 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.
Solid Rock Advisors advised Hersha on the sale.
