Hersha Sells Manhattan Hotel for $32M
- Mar 16, 2018
Hersha Hospitality Trust has sold its Hampton Inn Financial District hotel in Manhattan for $32.4 million. Solid Rock Advisors advised Hersha on the sale.
“This transaction highlights Hersha’s ability to successfully execute accretive dispositions and upgrade the portfolio with higher growth hotels in our core markets,” said Jay Shah, CEO of Hersha, in prepared remarks.
Located at 32 Pearl St., the 81-key hotel features a business center, a lounge, a snack shop, a fitness center, Wi-Fi and complimentary breakfast. The property is within close proximity to Wall Street, Battery Park, the 9/11 Memorial Museum, the Statue of Liberty and Ellis Island. La Guardia Airport is a 30-minute drive and John F. Kennedy International Airport is 45 minutes away. The hotel also offers easy access to the Brooklyn Bridge, Staten Island Ferry and the subway.
According to Shah, the sale represented a trailing 12-month economic capitalization rate of 4.4 percent and a hotel EBITDA multiple of 19.8x. Hersha’s capital recycling program over the past two years has led to the disposition of 19 hotels for $900 million, at an average economic capitalization rate of 5.9 percent and a EBITDA multiple of 15.1x.
“Proceeds from this sale were utilized to fund our share repurchase program and pay down our term loans by $18 million,” added Shah, in a prepared statement.
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