PHILADELPHIA, Oct. 25, 2022 (GLOBE NEWSWIRE) — Hersha Hospitality Trust, owner of luxury and lifestyle hotels in coastal gateway and resort markets, has closed on the previously announced sales of The Hotel Milo Santa Barbara and The Pan Pacific Seattle.
Mr. Jay H. Shah, Hersha’s Chief Executive Officer, stated, “We’re pleased to have closed these two previously announced dispositions. We believe the pricing on these two assets reflects our realigned portfolio’s per key valuation and further highlights Hersha’s public-to-private market valuation disconnect.”
Mr. Shah continued, “The timing of all of our dispositions has been very strategic. Holding assets into 2022 allowed us to benefit from increased hotel cash flows in the first half of the year, bringing pricing close to our internal NAV, while allowing us to take full advantage of a more active transaction and financing market than we are witnessing in today’s environment. The sales of Hotel Milo Santa Barbara and Pan Pacific Seattle, coupled with the dispositions of the Urban Select Service portfolio and other pending dispositions, total approximately $650M in gross proceeds and will reduce our debt load by approximately $500M while generating unrestricted cash of nearly $120M. As we move into the fourth quarter, we maintain significant financial and operational flexibility with a projected year-end cash balance exceeding $200M and a $100M undrawn line of credit.”
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 28 hotels totaling 4,270 rooms are located in New York, Washington, DC, Boston, Connecticut, 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
