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Suites Portfolio to Hersha Hospitality Trust on behalf of LodgeWorks |
McLean, Virginia � January 16, 2007 � Molinaro Koger (MK), announced
today that the firm successfully marketed and structured the sale of seven
extended-stay Hyatt Summerfield Suites hotels to Hersha Hospitality Trust
on behalf of LodgeWorks, L.P. The sale price for the
upscale extended-stay portfolio of 1,005 suites was approximately $169
million. The properties involved are well-located in top-tier, high barrier
to entry markets in the Northeast, Mid-Atlantic and West coast.
Following the sale, LodgeWorks will continue to manage the hotels and ensure brand compliance and quality for this portfolio. Hersha Hospitality Trust (AMEX: HT), a real estate investment trust (REIT), which owns interests in 68 nationally franchised, upper-upscale, upscale and midscale limited service and extended-stay hotels, anticipates the investment of an additional $2.5 million for capital improvements following the sale. �I believe this purchase will be viewed as a bold and smart move by Hersha,� commented Mark Morris, Senior Vice President of MK, who structured the transaction in conjunction with Rob Koger, President of MK. �Hyatt has devoted significant marketing resources to create brand recognition for the Summerfield Suites product and is very committed to this segment of the lodging industry. The extended stay segment is recognized as a worthy and stable niche within hospitality, with some of the highest profit margins in the industry. History is going to look back at this portfolio transaction as both a savvy execution of LodgeWorks� development plans and as a prime strategic acquisition by Hersha essential to their corporate development,� concluded Mr. Morris. B. Anthony (Tony) Isaac, President of LodgeWorks is pleased with the outcome of MK�s handling of this significant assignment. �The sale of the Hyatt Summerfield portfolio to Hersha was beneficial to all parties involved,� commented Mr. Isaac. �Our private real estate investors were pleased with the pricing that resulted. In turn, we believe Hersha will benefit from assets that are well located and in outstanding physical condition. The continuity of LodgeWorks as manager of the properties ensures the hotels will continue to perform at the top of their markets without any distractions or disruptions.� The following Summerfield Suites hotels comprised the transaction:
Mr. Shah added, "Although the hotels had initially been underwritten
without the benefits of a top-tier brand, the new relationship with Hyatt
is expected to provide substantial rate and occupancy upside to these assets.
These properties represent the embodiment of Hyatt's new brand for the
upscale extended-stay segment - the extended-stay model combined with urban
design and lifestyle elements. Additionally, these assets already attain
a premium rate versus Residence Inn and Homewood Suites in their markets.
Combined with Hyatt's brand launch, frequent stay program, and enhanced
food and beverage offerings, these assets may grow at an even faster rate
than their high growth sub-markets."
About Molinaro Koger Founded in 1959, Molinaro Koger (MK) is the world�s leading hotel-exclusive real estate brokerage, advisory and capital markets firm. MK provides clients with unparalleled service and commitment. During the past four decades the company has closed more than $15 billion in hotel property sales. Headquartered in Washington, DC, MK�s offices are located in Atlanta, Chicago, Cincinnati, Dallas, Los Angeles, Phoenix, San Francisco, London, Beijing, and Shanghai. MK structures the transactions of luxury hotels and resorts, and urban and mid-scale properties throughout the Americas, Europe, and the Far East. In the last 12 months MK has completed more than $3 billion in hotel transactions. The firm closes, on average, more than 75 hotel property sales each year. MK employs 20 hospitality advisor professionals and 40 support staff in administration, marketing, finance, technology and operations. Each member of the MK team possesses a unique perspective and invaluable insight. Together they have leading-edge expertise in every aspect of the hospitality business. The tremendous pool of talent among MK�s professionals makes for a powerful, results-driven sales team. MK can be accessed online at www.mkhotels.com. About LodgeWorks
About Hersha Hospitality Trust
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Sharon Lemon
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