Hersha Hospitality Trust
TypePublic company
NYSE: HT (Class A)
IndustryReal estate investment trust
Founded1984 (1984)
FounderHasu P. Shah
HeadquartersHarrisburg, Pennsylvania
Key people
Hasu P. Shah, Chairman
Jay H. Shah, CEO
Neil H. Shah, COO
Ashish R. Parikh, CFO
ProductsHotels
RevenueIncrease $529 million (2019)
Decrease -$27 million (2019)
Total assetsDecrease $2.122 billion (2019)
Total equityDecrease $807 million (2019)
Owner
  • Independent
  • (1984–2023)
  • KSL Capital Partners
  • (2023–present)
Number of employees
49 (2019)
Websitewww.hersha.com
Footnotes / references
[1]

Hersha Hospitality Trust is a real estate investment trust that invests in hotels. Named after its founder's wife,[2] it is organized in Maryland and its principal office is in Harrisburg, Pennsylvania.

As of December 31, 2019, the company wholly owned 38 hotels comprising 6,104 rooms and partially owned 9 hotels comprising 1,425 rooms, all of which were on either the West Coast of the United States or the East Coast of the United States.[1]

On November 29, 2023, KSL Capital Partners completed the purchase of Hersha.[3]

History

In January 1979, Indian-American immigrant Hasu P. Shah and his wife, Hersha, bought an 11-room motel near Harrisburg, Pennsylvania.[2] Five years later, Hasu Shah formed the company and purchased a hotel in Harrisburg, Pennsylvania.[2]

In January 1999, a year after being organized into a Maryland real estate investment trust, it became a public company via an initial public offering.[1] In May 2006, the firm acquired four Boston-area hotels for $44 million.[4]

In June 2015, the company acquired the St. Gregory Hotel in Washington, D.C. for $57 million.[5] Before acquiring The Ritz-Carlton, Georgetown for $49.9 million,[6][7] Hersha sold seven of its Manhattan hotels in February 2016 to a joint venture with Chinese company Cindat Capital Management.[8][6]

In August 2023, private equity firm KSL Capital Partners announced an agreement to purchase Hersha for $10.00 per share, for a total of $1.4 billion.[9] The share price represented a 60% increase over the closing share price the day before the agreement was announced.[10]

In November 2023, it was announced that KSL had completed the purchase of the company.

References

  1. 1 2 3 "Hersha Hospitality Trust 2019 Form 10-K Annual Report". U.S. Securities and Exchange Commission.
  2. 1 2 3 STEINBERG, DON (September 19, 2011). "The Shah Brothers Would Like You to Sleep With Them". Philadelphia.
  3. ↑ "KSL Capital Partners and Hersha Hospitality close $1.4bn deal". Hospitality Investor. Retrieved 2023-12-14.
  4. ↑ "Hersha Hospitality buys hotel portfolio for $44M". American City Business Journals. May 4, 2006.
  5. ↑ Sernovitz, Daniel J. (June 16, 2015). "Dupont Circle hotel sells for $57 million; new owner plans to upgrade restaurant, lobby". American City Business Journals.
  6. 1 2 "Hersha Hospitality Trust Sells Joint-Venture Interest in 7 Manhattan Hotels for $571.4 Million" (Press release). Business Wire. February 4, 2016.
  7. ↑ Neibauer, Michael (January 6, 2016). "Here's who just bought the Ritz-Carlton Georgetown". American City Business Journals.
  8. ↑ Hilario, Kenneth (May 2, 2016). "Hersha closes $571M multi-hotel sale". American City Business Journals.
  9. ↑ Tesse Fox, Jena (Aug 8, 2023). "Breaking News: KSL Capital Partners to acquire Hersha Hospitality Trust for $1.4B". Hotel Management.
  10. ↑ O'Neill, Sean (2023-08-28). "KSL Buys Hersha Hospitality for $1.4 Billion in Private Equity Bet on Lifestyle Hotels". Skift. Retrieved 2023-09-29.
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