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Hersha Trades Financial District Hotel to First-Time NYC Buyer
Hersha Hospitality Trust has sold the 81-key Hampton Inn Financial District for $32.4 million. The Philadelphia-based hotel REIT didn’t identify the buyer, but published reports say it was Virginia-based Shamin Hotels, making its first purchase in New York.
“While we remain bullish on the Manhattan lodging market, this was an opportunistic sale,” said Hersha CEO Jay Shah. It represents a trailing 12-month economic cap rate of 4.4% and a hotel EBITDA multiple of 19.8x. Proceeds from the sale will be used to fund Hersha’s share repurchase program and pay down debt.
In February, Hersha and joint venture partner Cindat Capital Management refinanced their existing joint venture on seven Manhattan hotels for $385 million. Included in the refi are two Lower Manhattan properties: the Holiday Inn Wall Street and the Holiday Express at 126 Water St. Hersha and Cindat, a Chinese investment management platform, formed the JV in 2016.
For comments, questions or concerns, please contact Paul Bubny
- ◦Financing
- ◦Sale/Acquisition
