This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Hersha Hospitality Acquires The Rittenhouse Hotel In Philadelphia, PA

Stocks in this article: HT

Hersha Hospitality Trust (NYSE: HT), owner of upscale hotels in urban gateway markets, announced today that the Company acquired an interest in a mixed-use building, which includes a condominium interest in the 111-room Rittenhouse Hotel and 44,000 square feet of retail and office space and a fee interest in an adjacent parking garage. The total purchase price for the tangible and intangible assets of the hotel, office, retail and parking garage is $42.0 million. Including the anticipated renovations, the hotel portion is valued at $23.9 million or $215,000 per key. The Rittenhouse Hotel has historically produced the highest revenue per available room (RevPAR) in the Philadelphia market.

“We are pleased to enhance our presence in the emerging Philadelphia market with the acquisition of the highly rated Rittenhouse Hotel,” commented Jay H. Shah, Chief Executive Officer. “This AAA Five Diamond hotel boasts the largest guestrooms and the best location in the city. The property is ideally situated on Philadelphia’s famed Rittenhouse Square, within walking distance to Center City’s primary corporate demand generators and its premier retail corridor. Additionally, the hotel affords easy access to the Convention Center and the City’s numerous arts, cultural, dining and leisure venues. The property has consistently been the top performer in the market, and we have identified further opportunities for enhanced asset management, upgrades and expansion which should improve operating margins and maximize Hersha’s investment in the property. The revenue from the adjacent parking garage and the income from the retail and office leases will also provide consistent cash flow at the property.”

The hotel features the highly rated Lacroix Restaurant, an indoor pool, fitness center, 8,500 square feet of business and social function space and 100 underground parking spaces. Hersha Hospitality Management has assumed management of the hotel.

Included in the acquisition is 44,000 square feet of retail and office space. The primary leaseholders include Smith & Wollensky, Citizens Bank, Prudential, Adolf Biecker Spa & Salon, and Saxbys Coffee. Hersha is also purchasing the adjacent fee simple stand-alone parking garage with 300 parking spaces.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs