Hersha Hospitality Trust, owner of high quality hotels in urban gateway markets and coastal destinations, announced the sale of the Hyatt House in Gaithersburg, Maryland for $19.0 million and the Holiday Inn Express in Chester, New York for $8.4 million on February 21.
“We are pleased to announce the sale of these two non-core hotels as we continue to execute our business plan, selling older, suburban assets to focus our portfolio on younger, higher growth hotels in gateway markets and coastal destinations. The sale price represents a blended trailing twelve-month economic capitalization rate of 4.9 percent and a hotel EBITDA multiple of 16.8x. We re-deployed the proceeds of this sale in repurchases of our stock at a deep discount to private market value,” stated Jay H. Shah, CEO of Hersha.
The sale resulted in taxable gains approximating $3.2 million. During the fourth quarter 2017, the company repurchased $30.4 million of its stock or 1.7 million common shares on the open market. Since 2014, Hersha has repurchased $232.3 million in common shares, representing 21.8 percent of the float.
For more information visit www.hersha.com.
Source: Hersha Hospitality Trust
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