PHILADELPHIA-Hersha Hospitality Trust has purchased the remaining 20% of Hampton Inn Philadelphia. The locally based REIT acquired an 80% stake in the property in joint venture with Affordable Hospitality Associates LP, also based here, in January 2006.

The latest transaction values the hotel at approximately $41.9 million, which includes about $21.4 million in debt. Ashish Parikh, CFO, tells GlobeSt.com the company paid $27 million for its initial share and $4.2 million for the final share, “which means we made a good buy,” he says. The cap rate on the entire property, Parikh says, is 10%, and “the cap rate on the final 20% share is closer to 8%.” Affordable was a Hersha development partner, and this was its only asset, according to Parikh.

The 250-room Hampton Inn Philadelphia was built in 2001 and is located at 1301 Race St., across the street from the Pennsylvania Convention Center. Hersha's initial 80% interest in the property carried a 9% participating preferred return on the asset.