Hersha Hospitality buys Sheraton JFK for $34 million

Hotel News - 30/06/2008

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Hersha Hospitality Trust has just announced that it has purchased the Sheraton JFK Airport Hotel, located adjacent to the JFK Airport in Jamaica, New York for nearly $34 million. Hersha Hospitality is a real estate investment trust, which owns interests in numerous hotel properties.

The Sheraton JFK Airport Hotel, a new, upscale property featuring around 2,300 square feet of meeting space, will be managed by Hersha Hospitality, L.P.

The real estate investment trust company is headquartered in New Cumberland, Pennsylvania, and has said that the acquisition of this Sheraton can be directly attributed to the success of the development loan program it instituted, which allows the company to purchase properties that it finances.

Also in connection with this purchase, is the assumption, by Hersha Hospitality, of a $23.8 million floating rate loan at LIBOR plus 2.0%. The company issued 1,177,306 Units in the Hersha Hospitality Limited Partnership to a third-party, and to Hersha Conduit Associates, LLC, which is a related party comprising members of the Hersha Hospitality management team and its trustees.

After the announcement, HT shares closed at $8.27, down $0.62, on a volume of 516K shares traded.

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