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Hersha Eyes $35M Yield From 4M Share Sale

PHILADELPHIA-The REIT will sell nearly 3.8 million shares at $9.75 a share to help it buy the outstanding interest in a JV with CNL.

By Marita Thomas | Updated on September 15, 2006

(To read more on the debt and equity markets, click here.)

PHILADELPHIA-Hersha Hospitality Trust has priced a secondary public offering of nearly 3.8 million shares of common stock at $9.75 a share. It anticipates net proceeds of about $35 million after underwriting discounts and commissions.

In addition, Hersha has granted underwriters a 30-day option to purchase up to 566,250 additional shares solely to cover any over-allotments, which could add about $5.5 million to the proceeds. The locally based REIT plans to use a portion of the proceeds to purchase the remaining two-thirds interest in its joint venture with Orlando-based CNL Hospitality Partners under which it acquired the Hampton Inn Manhattan-Chelsea on July 11. According to a Hersha SEC filing, the price of the remaining interest is about $25.4 million.

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