Marriott Residence Inn and 120-suite Marriott SpringHill Suites,
Both in Williamsburg, Virginia
|PHILADELPHIA, Pa., November 30, 2005—Hersha Hospitality Trust (AMEX:
HT), a real estate investment trust (REIT) and owner of nationally franchised,
upscale and mid-scale hotels, today announced that it has completed the
acquisition of a 75 percent preferred equity membership interest in the
108-suite Marriott Residence Inn and 120-suite Marriott SpringHill Suites
hotels, both in Williamsburg, Va., from Chesapeake, Va.-based LTD Management
Company. LTD, which developed the two properties, will retain ownership
of the remaining 25 percent. The hotels have a combined valuation
of $30.5 million.
“We seek to acquire hotels in high barrier to entry markets, focusing on central business districts, primary suburban office markets and stable destination markets,” said Jay H. Shah, Hersha president and COO of Hersha Hospitality Trust. “This acquisition continues another key strategy of cluster ownership and management in regional, drive-to destinations. Additionally with this transaction, we continue to build strong, working relationships with local ownership groups for the purpose of developing and/or acquiring premium branded properties under such flags as Marriott and Starwood.”
Hersha will earn a 12 percent preferred equity return on and of their capital invested in the Residence Inn and a tiered preferred return up to 12 percent in the SpringHill Suites in the newly formed joint venture. LTD will continue management of the hotels.
Both hotels are located adjacent to one another in the heart of Williamsburg, minutes from top area attractions such as Colonial Williamsburg and Busch Gardens. The Residence Inn offers spacious rooms with full kitchen and separate sitting, eating and sleeping areas. The property recently underwent a guest room renovation, which included new carpeting, drapes and bedding package, as well as the addition of the pantry-style Market Express. The SpringHill Suites offers spacious studio suites that are 25 percent larger than standard guest rooms, with pantry area and microwave.
Founded in 1983, LTD Management Company is a Chesapeake, Va.-based hotel development and management company. The company’s portfolio is located primarily in southeastern Virginia.
Hersha Hospitality Trust is a self-advised real estate investment trust that owns mid-scale and upscale hotels in the eastern United States with strong, national franchise affiliations. The company focuses on acquisition and joint venture opportunities of high quality assets in high barrier to entry markets. For more information, please visit the Company’s website at www.hersha.com.
Certain matters within this press release are discussed using forward-looking language as specified in 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 projected in the forward-looking statement.
Ashish Parikh, CFO (investors)
|Also See:||Colonial Williamsburg Wants the Williamsburg Lodge to be Centerpiece and Economic Engine of its Hospitality Operations / July 2005|
|Great Wolf Lodge in Williamsburg, VA Opens with 301 Suites with 10 Different Suite Configurations; Possibly the Largest Indoor Water Park in Virginia / March 2005|