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Hersha Hospitality Trust (NYSE: HT), owner of upscale and select service hotels in urban gateway markets, announced that the Company has closed on the previously announced sale of 14 of the 18 non-core assets. The Company expects to complete the sale of the remaining four assets by the end of the first quarter, pending completion of the CMBS loan assumption process.
The sale of the 14 assets generated net proceeds of approximately $40.5 million, reduced the Company’s consolidated mortgage debt by $42.5 million and reduced its proportionate share of unconsolidated mortgage debt by $13.8 million.
The sales are part of an ongoing portfolio transformation as the Company recycles its capital into higher growth urban gateway markets. The resulting portfolio is one with significantly improved operating metrics including higher Average Daily Rate, Hotel EBITDA margins and a lower average age.
About Hersha Hospitality Trust
Hersha Hospitality Trust is a self-advised real estate investment trust, which owns 66 hotels in major markets including New York, Washington, Boston, Philadelphia, Los Angeles and Miami. HT focuses on upscale and mid-priced hotels in urban gateway markets.
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, 2010, filed with the U.S. Securities Exchange Commission and the prospectus supplement and accompanying prospectus relating to the offering.