Hersha Hospitality Trust (NYSE: HT), owner of upscale and select service hotels in major metropolitan markets, today announced that the Company has refinanced the outstanding debt on its Courtyard Miami Beach Oceanfront. The new $60.0 million loan has a fixed interest rate of 4.32% and is interest only for the full four-year term. The loan is scheduled to mature in July 2016 and maintains a one year extension option. The initial funding is $45.0 million, with three additional draws of $5.0 million each every 90 days to fund the construction of the new 93-room oceanfront tower.
The Company purchased the 263 room Courtyard Miami Beach Oceanfront and an adjacent beachfront land parcel in November 2011. It is a fully-renovated historic hotel occupying an entire block of oceanfront property and remains the only franchised Marriott hotel in the Miami Beach market, a market with very attractive supply-demand dynamics. The hotel is ideally situated in the Mid-Beach submarket in a resort-style setting with easy access to the primary commercial district, the Miami Beach Convention Center and the Miami Airport. The Company began construction on the new all-suite oceanfront tower in May 2012 and anticipates that the construction would be completed in late 2013.
About Hersha Hospitality Trust
Hersha Hospitality Trust is a self-advised real estate investment trust, which owns 64 hotels in major urban gateway markets including New York, Washington, Boston, Philadelphia, Los Angeles and Miami totaling 9,221 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 www.hersha.com.Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements related to the expected timing of the transaction described above, 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, 2011, filed with the U.S. Securities Exchange Commission.