|PHILADELPHIA, Pa., June 16, 2005 — Hersha Hospitality Trust (AMEX:
HT), a real estate investment trust (REIT), today announced that it has
completed the acquisition of the 188-room Marriott Courtyard Boston/Brookline
in Massachusetts from Webster Street Hotel LLC. The stabilized property
was purchased for $54.5 million, equal to a forward net operating income
capitalization rate of approximately 7 percent. As part of this transaction,
Hersha has closed a first mortgage loan with Wachovia for $38.9 million
at a 10-year fixed interest rate of 5.35 percent. Hersha Hospitality
Management, LP will operate the hotel.
“This hotel is a very strong anchor for our Boston cluster and an ideal strategic fit for our portfolio,” said Jay H. Shah, president and COO. “The Brookline sub-market has extraordinarily high barriers to entry and this newly-built asset is the prototypical, urban, upscale hotel.”
The eight-story Marriott Courtyard Boston/Brookline is located at 40 Webster Street in Brookline, Mass., one mile from Boston and Fenway Park. The distinctive hotel blends sophisticated architecture and premium finishes to cater to its numerous and diverse demand generators. The vibrant area around the property, known as Coolidge Corner, is home to several fine restaurants, boutique shops and entertainment venues. The hotel is also surrounded by some of the nation’s most highly regarded hospitals, research institutions, universities, and health care companies. Major demand generators in the immediate area include Beth Israel Deaconess Medical Center, Boston College, Boston University, Brigham and Women’s Hospital, Children’s Hospital of Boston, Dana Farber Cancer Institute, the Harvard Medical School, and Northeastern University.
“The fact that the Courtyard already provides substantial cash flow and will be immediately accretive even though the hotel is still ramping up and the Boston market is only in the early stages of recovery is a very encouraging combination of factors,” added Shah.
The hotel was built from the ground-up and opened April 2003. The hotel features a 140-space underground parking lot, an outdoor public garden, indoor swimming pool and a bar and restaurant. The Coolidge Corner MBTA subway stop is located one block from the hotel, providing a convenient means to explore Boston and its surrounding areas. In addition, the property’s proximity to the Massachusetts Turnpike provides guests with easy access to and from Logan Airport.
Hersha Hospitality Trust is a self-advised real estate investment trust
that owns midscale and upscale hotels in the eastern United States with
strong, national franchise affiliations. The company focuses on acquisition
and joint venture opportunities in primary and secondary markets near major
Hersha Hospitality Trust
|Also See:||Hasu Shah, CEO of Hersha Hospitality, Named the Lodging Industry’s Top Performing Chief Executive of 2004 by HVS Executive Search / June 2005|
|New Castle Hotels will Co-develop and Own Courtyard by Marriott Brookline In the Coolidge Corner Section of Brookline, MA / December 2001|
|Developer Richard L. Friedman Secures Funding for a $30 million Marriott Courtyard in Brookline, Mass / Nov 2001|
|36-Property Hersha Hospitality Trust Selects Market Leader Aptech / June 2005|