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Hersha Offloads Hotels in Boston, NYC, Miami
Hersha Hospitality Trust has entered into binding sales contracts for two consolidated hotels and two unconsolidated joint venture assets for a total asset value of $144 million, which will result in $97 million of debt reduction. The REIT didn’t identify the buyers.
These agreements include the sales of the Blue Moon Hotel on Miami Beach for $30 million, and the Duane Street Hotel in New York City for $20 million, and the exit of the 50% ownership in two South Boston hotels: Courtyard South Boston and Holiday Inn Express South Boston, for $94 million.
“Each of these transactions occurred as a result of our strategy to reduce our leverage profile by selling lower EBITDA-producing hotels for valuations exceeding those ascribed to our current stock valuation,” said Jay Shah, CEO of Philadelphia-based Hersha.
The sales are expected to close in the second quarter, subject to customary closing conditions.
For comments, questions or concerns, please contact Paul Bubny
- ◦Sale/Acquisition
