Hersha Sells 2 Suburban Hotels in MD, NY
The hotels are located on the outskirts of New York City and Washington, D.C. Hyatt House in Gaithersburg, Md. and Holiday Inn Express in Chester, N.Y. traded for a total of $27.4 million.
By Beata Lorincz
Hyatt House in Gaithersburg, Md.
Continuing its disposal of hospitality assets that no longer serve its current interest, Hersha Hospitality Trust (Hersha) has sold two hotels in Maryland and New York. Hyatt House in Gaithersburg, Md. traded for $19 million, while the Holiday Inn Express in Chester, N.Y. changed hands for $8.4 million.
Hyatt House is located on the northern outskirts of Washington, D.C., on a 5.5-acre parcel at 200 Skidmore Blvd. According to public records, Hersha purchased to property in 2007 for $21 million. The Holiday Inn Express is situated at 2 Bryle Place, north of downtown New York City and adjacent to Route 6. The asset previously sold for $9.2 million in 2007.
Holiday Inn Express in Chester, N.Y.
“The sale price represents a blended trailing twelve-month economic capitalization rate of 4.9 percent and a hotel EBITDA multiple of 16.8x. We re-deployed the proceeds of this sale in repurchases of our stock at a deep discount to private market value,” said Jay Shah, Hersha’s chief executive officer, in prepared remarks.
According to Shah, Hersha is currently focusing on the sale of its older suburban properties, aiming to purchase newer, higher growth hotels in younger markets and coastal locations.
Images via Google Street View
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