Hotel Online
News for the Hospitality Executive


Hersha Hospitality Trust Increases Presence in Southern California and Florida

Closes on the Purchase of the 245-room Courtyard San Diego Downtown for $71.1 Million and Signs
Agreement to Acquire the 140-room Residence Inn Coconut Grove in Miami for $21.8 Million

PHILADELPHIA -- May 30, 2013--Hersha Hospitality Trust (NYSE: HT), owner of upscale and select service hotels in major metropolitan markets, announced that the Company has closed on the purchase of the Courtyard San Diego Downtown and has signed a definitive agreement to purchase the Residence Inn Coconut Grove in Miami. The purchase price for the 245-room Courtyard San Diego Downtown and the 140-room Residence Inn Coconut Grove are $71.1 million and $21.8 million, respectively.

“Both of these acquisitions further the Company’s strategy to invest in high quality urban transient focused hotels in our selected gateway markets. The Southern California and Miami markets exhibit strong growth prospects and we are extremely pleased to have sourced acquisitions that fit the Company’s highly selective investment criteria. The Company has been extremely disciplined in its expansion and our strong cash position allows us the flexibility to acquire these assets at an opportune time in the lodging cycle,” stated Jay H. Shah, Chief Executive Officer. “Given our strong position in New York and Boston, increasing our exposure to Miami and Southern California continues our efforts to leverage high demand, high barrier to entry international gateways to drive strong revenue and earnings growth in our portfolio building on our already strong asset value.”

The Courtyard San Diego Downtown is poised to capture strong market share and rate growth due to the completion of a significant renovation. The Seller recently completed a $6.4 million renovation of all guest rooms and public areas earlier this month and no further renovation disruptions are anticipated at this asset. The hotel is uniquely situated on the north side of the Gaslamp Quarter within close proximity to the Westfield Horton Plaza Mall and to strong business demand generators in the city’s Central Business District, encompassing approximately 11 million square feet of office space. The San Diego market is also a premier convention location in the Western US, second only to Las Vegas, and the expansion of the San Diego Convention center in 2016 is expected to further increase demand. Additionally, the San Diego market has a well-developed tourism infrastructure and its temperate climate provides year-round leisure transient demand. The purchase price reflects a first full year economic capitalization rate of approximately 7.0% and an expected stabilized capitalization rate of approximately 9%.

The Residence Inn Coconut Grove is located in a highly desirable commercial and residential neighborhood in Miami proximate to the Downtown Brickell office market and is the closest extended-stay property to the University of Miami in Coral Cables. The hotel will undergo a significant upgrade starting in May 2014. This asset is being purchased from a distressed seller and will significantly benefit from more aggressive asset management and planned capital investment. The purchase price reflects a trailing capitalization rate of 7.2%. Post renovation the asset is expected to stabilize at a capitalization rate in excess of 11%.

The Miami market remains a leading hub for domestic and international travelers, with consistent year round demand and high barriers to entry for new supply. The Miami market has been one of the strongest lodging markets in the country and year to date RevPAR growth is 13.6% through April 2013.

The Company anticipates closing on the Residence Inn Coconut Grove by the end of the second quarter of 2013. The proposed acquisition is subject to a variety of closing conditions and as a result, there can be no assurance that the Company will be able to consummate the acquisition on the schedule or on the terms described.

HHM will assume management of both the Courtyard San Diego Downtown and the Residence Inn Coconut Grove.

Both acquisitions will be funded with cash on hand and borrowings from the Company’s credit facility. The Company anticipates availability of approximately $200 million of additional investment capital after the acquisition of the two hotels.

The Company has posted a presentation of supplemental information about the Courtyard San Diego Downtown and the Residence Inn Coconut Grove acquisition at on the Investor Relations section under “Presentations.”

About Hersha Hospitality Trust
Hersha Hospitality Trust is a self-advised real estate investment trust that owns 65 hotels in major urban gateway markets including New York, Washington, Boston, Philadelphia, Los Angeles, San Diego and Miami totaling 9,552 rooms. HT follows a highly selective investment approach and leverages operational advantage through rigorous and sustainable asset management practices. For further information on the Company visit our website at

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of 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 reflected in the forward-looking statement. For a description of these factors, please review the information under the heading “Risk Factors” included in Hersha Hospitality Trust’s Annual Report on Form 10-K for the year ended December 31, 2012, filed with the U.S. Securities Exchange Commission.

Hersha Hospitality Trust
Ashish Parikh, CFO


To Learn More About Your News Being Published on Hotel-Online Inquire Here

Receive Your Hospitality Industry Headlines via Email for Free! Subscribe Here  

Also See: Hersha Hospitality Completes Sale of its Interest in the 92-room Courtyard by Marriott, Warwick, Rhode Island to its Joint Venture Partner / February 2013

Hersha Hospitality Trust Enters Agreement to Acquire the 205-room Hilton Garden Inn in Midtown Manhattan; The $74 Million (Approximately $361,000 per key) Deal will Close Shortly After Completion of the Hotel's Construction in Q4 2013 / October 2012

Hersha Hospitality Trust Acquires the 130-room Courtyard by Marriott in Ewing, New Jersey; Purchases Remaining Interest from Joint Venture Partner / August 2012

Hersha Hospitality Trust Names Two Senior Vice Presidents and a Senior Director Promoting Robert C. Hazard III, William J. Walsh and Charles Paloux / July 2012

Hersha Hospitality Acquires the 228-room Holiday Inn Express in Midtown Manhattan; Purchases Remaining Interest from Joint Venture Partner for $10 Million, a Total Acquisition of $87.5 Million or $383,772 per key / June 2012

Hersha Hospitality to Acquire the Bulfinch Hotel, its Eighth Hotel in the Boston Market, for $18.2 million or $228,000 per key / May 2012

Hersha Hospitality Trust Acquires Philadelphia's The Rittenhouse Hotel / March 2012

Hersha Hospitality Completes Sale of 14 Non-Core Properties Generating Net Proceeds of $40.5 Million; Part of an Ongoing Portfolio Transformation, Four More Sales to Close by End of Q1 2012 / February 2012

Hersha Hospitality Names Mark Wagner as General Manager and Deirdre Yack as Area Director of Sales and Marketing for Hyatt 48 Lex in New York City / October 2011

Hersha Hospitality Opens New-Build 116-key Hyatt 48 Lex in New York City / October 2011

The 499-room Hyatt Regency Indianapolis in Indiana Launches $19 Million Guestroom Renovation / October 2011

Hyatt Unveils Hyatt House, an Evolution of its Extended-Stay Brand; 38 Hyatt Summerfield Suites and 16 Recently Acquired LodgeWorks Hotels to Be Rebranded / September 2011

Hersha Hospitality Trust to Sell Portfolio of 18 Non-Core Properties to Starwood Capital Group for $155 million; Agreement Represents the Largest Sale in Hersha's History / August 2011

Edan Ballantine Appointed as Director of Food and Beverage at the Grand Hyatt New York / August 2011

Hyatt Hotels and Extell Development to Build New 54-story, 487-room Hyatt Times Square in New York City / August 2011

Hersha Hospitality Trust to Acquire the 175-Room Hyatt Hotel in Union Square, New York City for $104.1 Million or About $595,000 per key / July 2011

American Resort Management and Hyatt Hotels Open the 100-room Hyatt Place Long Island/East End in Riverhead, New York / July 2011

Hersha Hospitality Trust to Acquire 260-room Marriott Courtyard Westside in Los Angeles, California for $47.5 Million or $182,500 Per Key / May 2011

Hyatt Regency New Orleans, Shuttered Since Hurricane Katrina, Set to Open in October 2011 Following a $275 Million Redesign / May 2011

Hersha Hospitality Trust Acquires 112-room Holiday Inn Express Wall Street and the 81-room Hampton Inn Financial District in New York City / April 2011

Hersha Hospitality Trust Acquires Three Newly Opened Hotels in New York City for $165 million / $284,000 per Key / February 2010

Hersha Hospitality Management Adds 1,000-plus Rooms to Portfolio, Outlines Aggressive Growth Plans Via Third-Party Management/Joint Ventures / October 2009

Hersha Hospitality Trust Acquires the 45-room Duane Street Hotel in the Tribeca Area of New York City for $24.75 million / January 2008

To search Hotel Online data base of News and Trends Go to Hotel.OnlineSearch

Home | Welcome | Hospitality News
| Industry Resources

Please contact Hotel.Online with your comments and suggestions.