February 5, 2016
Hersha Hospitality Trust of Philadelphia has struck an agreement with Cindat Capital Management Ltd., forming a joint venture to acquire seven of Hersha’s limited-service hotels in Manhattan. According to Hersha, the 1,087-room portfolio will sell for $571.4 million, or $526,000 per room key.
The transaction is expected to close by March 31, and will leave Beijing-based Cindat as the preferred JV partner with a 70% ownership stake, while Hersha would retain 30%. Hersha indicated that the reason for the pending transaction is for redeployment of capital into other investments.
The portfolio includes the Holiday Inn Express, Candlewood Suites, and Hampton Inn in Times Square, the Holiday Inn and Holiday Inn Express Wall Street, and Hampton Inns in Chelsea and Herald Square.