Hersha Hospitality Trust to Sell Hotel 373 in Manhattan for $529,000 Per Room
Hersha Hospitality Trust (NYSE:HT, "Hersha" or "the Company"), owner of upscale hotels in urban gateway markets, announced that the Company has entered into a definitive agreement to sell the Hotel 373 located in midtown Manhattan. The 70 room hotel is being sold to an offshore investment group for $37.0 million, or approximately $529,000 per key.
The sale price values the hotel at $1,680 per square foot, and on 2013 operating results represents an economic capitalization rate of 5.2% and a hotel EBITDA multiple of 17.3x. The transaction is expected to close during the second quarter of 2014, and is subject to customary closing conditions, including the completion of the buyer's due diligence. No assurance can be given that this hotel will be sold within the expected time frame or at all. In addition, all stock buy-backs, if any, will be made pursuant to the previously announced program that was recently extended by the Board through the end of 2014.
Forward Looking Statement
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, 2015, filed with the U.S. Securities Exchange Commission.
Cindat Capital Management Ltd. ("Cindat") was founded in 2013 with the goal of guiding and safeguarding Chinese institutional and private capital in their overseas real estate investments. Since inception, it has invested over $1.3 billion of equity capital in more than $6 billion worth of real estate assets in the U.S., the UK, Australia, and China. One of its shareholders is China Cinda Asset Management Co.