Hersha Hospitality Trust is being acquired by KSL Capital Partners, a private equity firm that specializes in the travel and leisure industries, in an all-cash deal valued at $1.4 billion. KSL is buying the REIT's common shares at $10 per share, representing a premium of 60% over Hersha's closing share price on August 25, 2023, the last full trading day prior to the announcement.
The company has "built an impressive, curated portfolio of experiential luxury and lifestyle hotels and resorts in strategic markets," says Marty Newburger, partner at KSL, in prepared remarks. "We are uniquely suited to position the business for further success over the long term."
Like most commercial real estate asset classes, hotel transactions have dropped this year and along with the fewer transactions, prices have slipped. According to a recent report from Marcus & Millichap, the average entry cost during the first half of 2023 was $103,200 per key, a 4.1% decline relative to last year's measurement.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
