PHILADELPHIA-Locally-based Hersha Hospitality Trust reports it has sold its interest in the 92-room Courtyard by Marriott in Warwick, RI for $7.15 million.
Hersha Hospitality had a 66.7% interest in the 92-room hotel, which it states was acquired in August 2005. The company did not reveal the identity of its joint venture partner in its announcement. However in June 2005 Hersha Hospitality announced that it had signed definitive agreements to enter into a joint venture with Waterford Hospitality Group, LLC. The newly formed company named Mystic Partners, LLC, was to own a portfolio consisting of nine Marriott and Hilton-branded hotels with 1,707 rooms in Connecticut and Rhode Island with an aggregate value of approximately $250 million. One of the hotels in that joint venture deal was the Courtyard by Marriott in Warwick, RI.
Hersha Hospitality termed the Warwick property as a non-core asset.
“The sale of our interest in this property helps further some of Hersha’s primary stated objectives including continuing to enhance the quality and location of our portfolio and simplifying our capital structure,” commented Hersha CEO Jay H. Shah. “After this disposition, we anticipate that less than 7% of our 2013 Adjusted FFO will come from unconsolidated joint venture properties. This transaction removes another secondary market, non-core asset from our portfolio, allowing us to fully concentrate on our higher growth hotels in key urban gateway cities. Finally, it also helps reduce our leverage as we remove the associated debt from this joint venture investment.”
Hersha Hospitality Trust, headquartered in Philadelphia, owns 63 hotels in urban gateway markets including New York, Washington, Boston, Philadelphia, Los Angeles and Miami totaling 9,129 rooms.