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Hersha Hospitality Closes Purchase of Philly-Area Hotels for 40.5 Million

The REIT also strengthens its balance sheet with loan repayments of $35.5 Million.Hersha Hospitality Trust (AMEX: HT), a real estate investment trust (REIT) that owns 50 upscale and midscale hotels across the U.S., today announced that it has closed the purchase of three Marriott-branded hotels for about $40.5 million in cash.

Hersha has finalized its acquisitions of the 118-room Courtyard Philadelphia in Langhorne, Pennsylvania, and two Fairfield Inn & Suites–a 103-room hotel located in Bethlehem, Pennsylvania, and a 118-room hotel in Mt. Laurel. The purchases were financed with available cash on hand and about $29.2 million in mortgages set at a fixed rate of 5.75%.

Moreover, the Philadelphia-based REIT’s balance sheet was bolstered by the receipt of some $35.5 million in repayments on four of its five development loans. The loans were made to the developers of the Hilton Garden Inn JFK Airport, the Homewood Suites in Glastonbury, Connecticut, and two boutique hotels in Manhattan. Hersha shares gained $0.09 to $9.25 in afternoon trading.

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