Hersha Hospitality Trust (NYSE: HT) (the “Company”), owner of upscale hotels in urban gateway markets, today announced that it closed on a new $400 million senior unsecured credit facility (the “Facility”) that is expandable to $550 million. The credit facility consists of a $250 million senior unsecured revolving line of credit (the “Revolving Credit Facility”) and a $150 million senior unsecured term loan (the “Term Loan”). This new Facility replaces the Company’s $250 million senior secured revolving credit facility. Concurrent with the closing of the Facility, the Company funded a $100 million tranche of the Term Loan at a fixed interest rate of 3.195% for four years. The Company anticipates funding the remaining $50 million tranche of the Term Loan prior to December 31, 2012. The Term Loan borrowings were used to pay off the existing balance on the secured revolving credit facility, pay off the balance on mortgage loans at six hotel properties, and for general corporate purposes. “The overwhelming support of the banking community resulted in a significant oversubscription that allows us to eliminate our floor pricing and reduce our weighted average cost of debt, extends the term of the Facility and provides us access to the unsecured debt markets,” commented Ashish R. Parikh, Chief Financial Officer. “We appreciate the confidence shown by the 16 members of this bank group and the size and pricing of the new Facility further validates the embedded growth potential of our portfolio and the conservative balance sheet strategy we have undertaken.” The Facility was arranged by Citigroup Global Markets Inc. and Wells Fargo Securities, LLC, as Joint Lead Arrangers and Book Running Managers. Bank of America, N.A., Raymond James Bank, N.A., Manufacturers and Traders Trust Company and TD Bank, N.A. are acting as Co-Documentation Agents. BBVA Compass, Fifth Third Bank, Regions Bank and US Bank National Association are acting as Senior Managing Agents. Other lenders under the Facility include Goldman Sachs Bank USA, Morgan Stanley Bank, N.A., UBS Loan Finance LLC, PNC Bank, The Provident Bank, and Beneficial Bank.
About Hersha Hospitality TrustHersha Hospitality Trust is a self-advised real estate investment trust, that 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, 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.