PHILADELPHIA, April 03, 2018 (GLOBE NEWSWIRE) -- Hersha Hospitality Trust (NYSE:HT) (“Hersha” or the “Company”), owner of high quality hotels in urban gateway markets and coastal destinations, today announced the purchase of the 150-room Annapolis Waterfront Hotel, an Autograph Collection Hotel, for $41.5 million.
“We are pleased to acquire the Annapolis Waterfront Hotel, expanding our Mid-Atlantic cluster, at an attractive economic capitalization rate of 8.7% and 10.4x EBITDA multiple. The location of the hotel in the pedestrian scale core of the city is irreplaceable. The Hotel is situated on the Harbor adjacent to the town square, the Annapolis Yacht Basin and the Annapolis Yacht Club, at the base of Main Street’s restaurant and bars. It is a short 3-block walk from the Main Gate of the United States Naval Academy, all local tourism attractions and demand generators. This unique waterfront location provides a competitive advantage that enables the hotel to achieve strong occupancies and premium rates in a high barrier-to-entry marketplace,” stated Mr. Jay H. Shah, Hersha’s Chief Executive Officer.
Mr. Shah continued, “We have been active on the disposition front over the past two years, selling 19 mature, stabilized hotels at an average economic capitalization rate of 5.9% and 15.1x EBITDA multiple. This acquisition allows us to replace a significant portion of the EBITDA from our 2018 sales and refinancing efforts. In addition to synergies from our Washington DC hotels, we expect to leverage the capabilities acquired at our 14 other independent and soft branded hotels to drive performance and profitability and enhance the value of the asset.”
The Annapolis Waterfront Hotel was converted to an Autograph Collection in 2015 and is in close proximity to a number of demand generators including the United States Naval Academy, St. John’s College, the Maryland State House and the State Capitol complex. The property boasts 15,000 square feet of function space, half of which is allocated to the hotel’s outdoor terrace, along with a leased waterside restaurant and bar. In addition to the F&B lease, the asset also generates lease income through onsite parking, slip rental fees and various antenna leases.
The Company has posted a presentation of supplemental information regarding the purchase of the Annapolis Waterfront Hotel on its website at www.hersha.com in the Investor Relations section under “Presentations”.
Hersha Hospitality Trust (HT) is a self-advised real estate investment trust in the hospitality sector, which owns and operates high quality upscale hotels in urban gateway markets and coastal destinations. The Company's 49 hotels totaling 7,653 rooms are located in New York, Washington, DC, Boston, Philadelphia, South Florida and select markets on the West Coast. The Company's common shares are traded on The New York Stock Exchange under the ticker “HT”. For more information on the Company, and the Company’s hotel portfolio, please visit the Company's website at www.hersha.com
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, including, without limitation, the Company’s ability to implement its business strategies for The Annapolis Waterfront Hotel on the terms and timing it expects, the Company’s forecasts of performance and future yields for The Annapolis Waterfront Hotel, the Company’s expectations for the long-term performance of the Annapolis market and the risks associated with a lack of market knowledge or understanding of the local economy, ability to forge new business relationships and lack of experience with local government and permitting procedures when entering a new market. For a description of these factors, please review the information under the heading “Risk Factors” included in Hersha Hospitality Trust’s filings with the U.S. Securities and Exchange Commission Annual Report on Form 10-K for the year ended December 31, 2017 and subsequent reports filed by the Company with the Securities and Exchange Commission from time to time.
Contact:
Ashish Parikh, Chief Financial Officer
Greg Costa, Manager of Investor Relations & Finance
Phone: (215) 238-1046