Hersha Hospitality In $175M Credit Agreement

PHILADELPHIA-Upscale hotel owner Hersha Hospitality has landed a $175-million revolving credit-line agreement in a tough lending environment. The REIT will use the funds for the acquisition of properties as well as general corporate purposes.

A group of banks has already committed $135 million, and the agreement’s structure allows for an additional $40 million to be arranged through new participants. The agreement expires on Dec. 31, 2011.

Hersha has consolidated debt maturities in fiscal 2009 totaling $32.5 million. Management expects to refinance that maturity, but if it is not able, intends to pay it down with the new agreement.