Hersha Hospitality Announces Agreement to Acquire Hilton Garden Inn in Midtown Manhattan
Hersha Hospitality Trust (NYSE: HT) (the “Company”), owner of upscale and select service hotels in major metropolitan markets, announced that the Company has entered into a purchase and sale agreement to acquire the 205 room Hilton Garden Inn in New York City located at 52nd Street near Third Avenue for total consideration of $74.0 million, or approximately $361,000 per key. The transaction is expected to close shortly after the developer completes the hotel's construction, anticipated in the fourth quarter of 2013.
“We have been able to source another extremely attractive off-market asset to add to our Manhattan portfolio. Not only will it be a high quality, well-located hotel, but we will be acquiring it at a basis that is approximately 25% below the average price per room for recent comparable transactions,” commented Jay H. Shah, Chief Executive Officer. “Appealing to both corporate and leisure travelers, the HGI Midtown East is ideally situated within a 19.8 million square foot office market and is proximate to a number of notable landmarks including the United Nations, Grand Central Station and Rockefeller Center. This asset will be only the second hotel to open in this submarket in the last 15 years speaking volumes of its high barriers to entry.”
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.