PHILADELPHIA, Sept. 12, 2022 (GLOBE NEWSWIRE) — Hersha Hospitality Trust (NYSE: HT), owner of luxury and lifestyle hotels in coastal gateway and resort markets, today announced that it has entered into definitive agreements to sell two of its West Coast properties for gross proceeds of $125 million, or approximately $455,000 per key.
Mr. Jay H. Shah, Hersha’s Chief Executive Officer, stated, “We’re pleased to have reached two separate agreements that are expected to increase our operational flexibility while furthering our long-term strategic objectives and delivering immediate shareholder value. The valuation of these two assets is yet another confirmation of the public-to-private market valuation gap for our portfolio, and we believe pricing on these two assets is more representative of the remaining portfolio than prior dispositions.”
Hersha intends to use the proceeds from the sale to pay down approximately $45 million of debt and expects to utilize the remainder for general corporate purposes including, but not limited to, additional debt repayment and dividend payments.
These transactions are subject to customary closing conditions and are expected to close in the fourth quarter of 2022, subject to customary closing conditions.
In conjunction with this release, the Company has posted an updated investor relations presentation and a presentation of supplemental information detailing the impact of transactions completed this year on its website in the Investor Relations section under “Presentations”.
Hersha Hospitality Trust (HT) is a self-advised real estate investment trust in the hospitality sector, which owns and operates luxury and lifestyle hotels in coastal gateway and resort markets. The Company’s 30 hotels totaling 4,544 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.” For more information on the Company, and the Company’s hotel portfolio, please visit the Company’s website at www.hersha.com.
