Hersha Hospitality (HT) Acquires Remaining Holiday Inn Express Manhattan for $87.5M


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June 21, 2012 8:02 AM EDT Send to a Friend
Hersha Hospitality Trust (NYSE: HT), owner of upscale and select service hotels in major metropolitan markets, announced that it has purchased the remaining 50% interest it did not previously own in the 228-room Holiday Inn Express 29th Street in New York, NY. Including its initial investment at the commencement of operations in February 2007, the total acquisition price is $87.5 million, or $383,772 per key. Since the Company’s initial acquisition, the asset had been accounted for as an unconsolidated joint venture investment but will now become a consolidated asset for 2012.

The Company’s purchase of the remaining ownership in the joint venture for $10.0 million follows its February 2007 purchase of a 50% ownership stake for $7.5 million. The property has an outstanding first mortgage loan balance of $54.6 million which bears interest at a rate of 6.50% and matures in November 2016, and a $15.0 million mezzanine loan which the Company intends to pay off by the end of the second quarter.

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