Hersha Hospitality Trust sells Hampton Inn Financial District for $32.4 million in Philadelphia
PHILADELPHIA, PA — Hersha Hospitality Trust (Hersha), owner of high quality hotels in urban gateway markets and coastal destinations, 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,” said Jay Shah, Hersha’s CEO.
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.” Solid Rock Advisors advised Hersha on the sale.