The price for the 188-unit JFK asset is $29 million. The seller, Metro JFK Associates LLC, is a development company that is related to the locally based hospitality REIT and a participant in its development loan financing program. Under the program, Hersha provides development loan funding and, in turn, has a first right of refusal to acquire the finished asset. The property opened in February 2005. Metro repaid the loan this January.

Hersha's partner in the 250-room Hampton Inn Philadelphia, which was completed in 2001, is a group of individuals affiliated with Hersha, Ashish Parikh, CFO, tells GlobeSt.com. "The group retains a 20% interest in the property." The agreement provides Hersha with a 9% participating preferred return in exchange for its investment of $6.9 million, The aggregate value of the asset is $27 million, and Ashish says, "We'll put debt of $21 million on the asset."

The closing of both transactions was completed with a combination of cash from the company's revolving credit line, mortgage debt and the issuance of 657,895 operating partnership units. This January, Hersha obtained a $60-million line of credit from Commerce Bank.