Hersha Hospitality Trust
),a real estate investment trust (REIT), has recently
acquired the remaining 50% ownership stake in the
130-room Courtyard by Marriott hotel located in Ewing, a sub-market
of Princeton, New Jersey. With the transaction, Hersha Hospitality
becomes the sole owner of this property.
Since 2004, the property has been considered as an
unconsolidated joint venture investment but will become a
consolidated asset as of the third quarter of 2012. With the
completion of this deal, Hersha Hospitality expects thatless than
8% of its 2013 Adjusted EBITDA (Earnings before interest, tax,
depreciation and amortization) will be generated from its portfolio
of unconsolidated joint ventures.
In concurrence with the deal, Hersha Hospitality repaid the
first mortgage loan secured by the hotel and entered into a new
$9.15 million revolving line of credit collateralized by it.
The strategic move is expected to provide long-term earnings
growth to its shareholders through opportunistic investment in
premium high-quality properties. Hersha Hospitality aims to further
capitalize on opportunities as the sub-market recovery continues
and the lodging cycle gains strength. The location of the hotel in
a densely populated submarket is also expected to drive accelerated
demand from corporate clients.
Hersha Hospitality primarily owns upscale hotels in urban
gateway markets. It currently owns 64 hotels in major urban
markets including New York, Washington, Boston, Philadelphia, Los
Angeles, and Miami totaling 9,221 rooms.
Hersha Hospitality currently retains a Zacks #3 Rank, which
translates into a short-term Hold rating. We have a long-term
Neutral recommendation on the stock. One of its competitors,
Ashford Hospitality Trust (
also holds a Zacks #3 Rank.
ASHFORD HOSPTLY (AHT): Free Stock Analysis
HERSHA HOSPTLY (HT): Free Stock Analysis Report
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