Hersha Hospitality Sells Non-Core Joint Venture Asset
-Sells Interest in Courtyard by Marriott in Warwick, Rhode Island -
PHILADELPHIA--(BUSINESS WIRE)-- Hersha Hospitality Trust (NYS: HT) , owner of upscale and select service hotels in major metropolitan markets, announced that it has sold its 66.7% interest in a 92-room Courtyard by Marriott located in Warwick, Rhode Island to its Joint Venture partner in a transaction valuing the property at $7.15 million. This property was acquired in August of 2005.
"The sale of our interest in this property helps further some of Hersha's primary stated objectives including continuing to enhance the quality and location of our portfolio and simplifying our capital structure," commented Jay H. Shah, Chief Executive Officer. "After this disposition, we anticipate that less than 7% of our 2013 Adjusted FFO will come from unconsolidated joint venture properties. This transaction removes another secondary market, non-core asset from our portfolio, allowing us to fully concentrate on our higher growth hotels in key urban gateway cities. Finally, it also helps reduce our leverage as we remove the associated debt from this joint venture investment."
About Hersha Hospitality Trust
Hersha Hospitality Trust is a self-advised real estate investment trust, that owns 63 hotels in major urban gateway markets including New York, Washington, Boston, Philadelphia, Los Angeles and Miami totaling 9,129 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 Statement
Certain matters within this press release are discussed using forward-looking language as specified in 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 projected in the forward-looking statement. These forward-looking statements include, among others, statements related to the Company's cashflow generation. For a description of factors that may cause the Company's actual results or performance to differ from its forward-looking statements, please review the information under the heading "Risk Factors" included in the Company's Annual Report on Form 10-K for the year ended December 31, 2011 filed by the Company with the Securities and Exchange Commission on February 29, 2012 and other documents filed by the Company with the Securities and Exchange Commission.
Hersha Hospitality Trust
Ashish Parikh, CFO, 215-238-1046
KEYWORDS: United States North America Pennsylvania Rhode Island
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