Hersha Hospitality Announces Closing of Acquisitions; Closes Purchase of Two Marriott-Branded Hotels
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Hersha Hospitality Announces Closing of Acquisitions; Closes Purchase of Two Marriott-Branded Hotels
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Category: North America & West Indies / Carribean islands
This is a press release selected by our editorial committee and published online for free on 2006-02-07
Hersha Hospitality Trust (AMEX: HT - News), a real estate investment trust (REIT) and owner of 52 nationally franchised, upscale and midscale hotels, today announced the closing of the acquisition of the Tyson's Corner Residence Inn located in Vienna, Virginia and the Courtyard by Marriott in Scranton, Pennsylvania.
The 96-room Tyson's Corner Residence Inn was purchased for $19.8 million, as announced last month. The hotel is situated in Northern Virginia's most exclusive business and shopping district only 20 to 25 minutes from Washington, DC, Dulles International Airport and Reagan National Airport making it an ideal lodging choice for business, special events and leisure travelers. The acquisition was financed with cash and the assumption of a fixed rate mortgage of $9.6 million at an interest rate of 6.52%.
The Company's purchase of a 120-room Scranton Courtyard by Marriott located in Scranton, Pennsylvania totaled $8.7 million. The acquisition was financed with cash and a 10-year fixed rate mortgage of $6.3 million at an interest rate of 5.83%. The hotel is located in a vibrant tourist area of Central Pennsylvania at the base of Montage Mountain Ski Resort and is easily accessible from major highways.
Mr. Jay H. Shah commented, "We are pleased to have closed these purchases so early in the year. The strategic acquisition of the Tyson's Corner Residence Inn increases our leverage to the upscale segment with strong Marriott affiliations. The Scranton Courtyard purchase is small relative to our recent acquisitions, but at a price below replacement cost and accretive to our earnings. Additionally, it compliments the Company's cluster of Pennsylvania hotels with consistent cash flows."
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