Hersha Hospitality Sells Two West Coast Properties For $125M

Hersha Hospitality Trust HT has entered into definitive agreements to sell two of its West Coast properties for gross proceeds of $125 million, or about $455,000 per key.
The company intends to use the proceeds from the sale to pay down approximately $45 million of debt and for general corporate purposes.
The transaction is expected to close in the fourth quarter of FY22.
Hersha's 30 hotels totaling 4,544 rooms, are located in New York, Washington, DC, Boston, Philadelphia, South Florida, and select markets on the West Coast.
The company held $101 million in cash and equivalents as of June 30, 2022.
"The valuation of these two assets is yet another confirmation of the public-to-private market valuation gap for our portfolio, and we believe the pricing on these two assets is more representative of the remaining portfolio than prior dispositions," said CEO Jay H. Shah.
Price Action: HT shares closed higher by 3.38% at $10.41 on Friday.