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KSL Taking Hersha Hospitality Private for $1.4B
Hersha Hospitality Trust said Monday that KSL Capital Partners will acquire all outstanding common shares of the lodging REIT in an all-cash transaction valued at approximately $1.4 billion. The purchase price represents a premium of approximately 60% over Hersha’s closing share price on August 25.
“We are proud of the work our team has done to build on Hersha’s culture and capabilities and make the company what it is today,” said Hersh CEO Neil H. Shah. “This transaction is a result of our deliberate actions to focus on key gateway markets and lifestyle and leisure properties, as well as our work to create a concentrated portfolio consisting of some of the highest quality hotels in their respective markets.”
At Denver-based private equity firm KSL, partner Marty Newburger said, “Hersha and its team have built an impressive, curated portfolio of experiential luxury and lifestyle hotels and resorts in strategic markets. With KSL’s extensive track record investing in high-quality assets in dynamic metropolitan markets across North America and around the world, we are uniquely suited to position the business for further success over the long term.”
Goldman Sachs is serving as exclusive financial advisor and Latham and Watkins LLP and Venable LLP are serving as legal advisors to the transaction committee of Hersha’s board of trustees, while Hunton Andrews Kurth LLP is serving as legal advisor to Hersha. Wells Fargo and Citigroup are serving as financial advisors and Simpson Thacher & Bartlett LLP and Miles and Stockbridge P.C. are serving as legal advisors to KSL. Additionally, Wells Fargo and Citigroup provided a debt financing commitment to KSL in connection with the privatization.
Pictured: Hersha’s Ritz-Carlton Coconut Grove.
- ◦Sale/Acquisition
