PHILADELPHIA, Jan. 05, 2021– Hersha Hospitality Trust (NYSE: HT) (“Hersha” or the “Company”), owner of high-quality hotels in urban gateway markets and regional resort destinations, today announced it entered into a binding sales agreement on the 245-room Courtyard San Diego for $64.5 million resulting in a net book gain approximating $5.4 million. The Courtyard San Diego has no property-level debt and will result in net proceeds of $64.5 million which will be utilized to repay borrowings under the Company’s credit facilities.
“After a highly competitive sales process, we are pleased to announce the sale of the Courtyard San Diego to a fund managed by a leading global investment management firm. We have owned and operated this exceptional hotel for 7 years located in downtown San Diego at the north end of the Gaslamp Quarter. Although we expect the hotel to perform well as the economy recovers and group demand returns, for Hersha today, the sale is an attractive opportunity to bolster our balance sheet with a relatively low cost of capital,” stated Mr. Jay H. Shah, Hersha’s Chief Executive Officer.
The Company has received a $3.0 million hard deposit from the buyer on the transaction, which is anticipated to close by the end of the first quarter 2021. The transaction remains subject to customary closing conditions and no assurance can be given that the transaction will close within the expected time frame, or at all.