Trading of HT stock opened on Friday, September 26, at $9.06 a share. At that price, the sale would add more than $78 million to the locally based hotel REIT's coffers. The filing includes an additional 1.1 million shares subject to the underwriters' over-allotment option, which would add another approximately $10 million.
Brooklyn based Citigroup Global Markets Inc. and the New York office of UBS Securities LLC will act as joint book-running managers of the proposed offering.
The filing came in the same week Jay Shah was promoted from managing director of the company's affiliate, Hersha Group in Philadelphia, to president and COO of the REIT. In his new post, Shah is specifically charged with playing "a key role in acquisitions." The sale of stock would line his pockets.
Hersha was formed in May 1998 and went public in January 1999. Since its inception, it has focused primarily on owning and operating quality, mid-scale, limited-service hotels in the Eastern US. At the time of its IPO it owned 10 hotels in PA. As of March 2003, it owned 18 in PA, NY, GA and MD.
HT shares are currently trading at their 52-week high. The 52-week low was $5.40 a share, which occurred during October 2002.
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