US: Hersha Hospitality Trust (HHT) has completed the sale of three extended stay hotels for $130.5 million.
The company announced the sale of three Hyatt House hotels which were sold unencumbered of debt and generated taxable gains of approximately $67 million. The portfolio sale included the 142-room Hyatt House in Pleasant Hill, California; the 128-room Hyatt House in Pleasanton, California; and the 164-room Hyatt House in Scottsdale, Arizona, for $130.5 million or approximately $301,000 per key.
“The successful closing of this transaction marks the 24th month of our capital recycling campaign during which we sold approximately $850 million of mature, stabilised hotels and successfully deferred $270 million of taxable gains with $816 million of accretive acquisitions. In addition to refining our portfolio’s market mix to urban gateway and coastal destinations, our improved portfolio quality focuses our capabilities on hotels with higher RevPAR and EBITDA growth potential in our core markets. Proceeds from the sale provide financial flexibility as we continue to execute our business plan and ongoing ROI projects,” said Jay H. Shah, Hersha’s chief executive officer.
“We have owned these hotels for 10 years and they have proven to be very productive investments. The combined EBITDA generated at the three hotels at the time of sale was 60 per cent above prior peak and 233 per cent above the trough of 2010. We look to drive similar success from our most recent acquisitions in Philadelphia, Boston, Santa Monica, Seattle, and Miami,” he added.</p
