Hersha Hospitality Trust
Company typePublic company
NYSE: HT (Class A)
IndustryReal estate investment trust
Founded1984; 40 years ago (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. ^ a b c "Hersha Hospitality Trust 2019 Form 10-K Annual Report". U.S. Securities and Exchange Commission.
  2. ^ a b c 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. ^ a b "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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