Hersha Hospitality Announces Sale of the Hyatt Place in King of Prussia, PA
Hersha Hospitality Trust (NYSE: HT) ("Hersha" or the "Company"), owner of upscale hotels in urban gateway markets, today announced the Company has closed on the sale of the 129-room Hyatt Place in King of Prussia, PA for $13.0 million, or approximately $101,000 per key. The hotel is being sold unencumbered of debt and management.
"We are pleased to complete the sale of the Hyatt Place in King of Prussia, and capitalize on the continuing interest from local real estate investors in stabilized, select service assets in suburban markets. The sale refines our geographic mix, and focuses our resources on high RevPAR hotels in growth markets that are core to our strategy. We expect to use the proceeds generated from the sale to fortify our balance sheet, providing us additional flexibility to carry out our business plan," stated Mr. Neil H. Shah, Hersha's President and Chief Operating Officer.
The sale price reflects a trailing economic capitalization rate of 7.8% based on the hotel's net operating income for the twelve-month period ended March 31, 2016, and a hotel EBITDA multiple of 10.9x.
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. The Company's 56 hotels totaling 8,892 rooms are located in New York, Boston, Philadelphia, Washington, DC, Miami and select markets on the West Coast. The Company's shares are traded on The New York Stock Exchange under the ticker "HT".
Forward Looking Statement
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, and, as such, may involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance to differ from those reflected in the forward-looking statement. For a description of these factors, please review the information under the heading "Risk Factors" included in Hersha Hospitality Trust's Annual Report on Form 10-K for the year ended December 31, 2015, filed with the U.S. Securities Exchange Commission.
Hersha Hospitality Trust
www.hersha.com
510 Walnut Street | 9th Floor
USA - Philadelphia , PA 19106
Phone: 215.238.1046
Fax: 215.238.0157
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