PHILADELPHIA-Starwood Capital Group purchased a 49.9% stake in locally based Hersha Hospitality Management, and the two firms will now nationally pursue the purchase of select- and full-service hotels. Financial details of the acquisition were not released by either party.
Part of the two firms' strategy is to look at value-added opportunities. The mangement teams of Hersha, headed by CEO Naveen Kakarla, and Starwood, led by Chairman Barry Sternlicht are also looking at acquiring assets in select suburban areas.
Hersha, which is affiliated with REIT Hersha Hospitality Trust, manages many of that entity's hotels and operates about 70 assets across the country. Last month the Hersha Hospitality Management gained leasing duties for Holiday Inn at Wall Street, in Manhattan, after the Hersha REIT acquired that hotel for $34.8 million.
Starwood, which has invested $24 billion in various real estate properties since 1991, was responsible for the formation of the publicly traded Starwood Hotels & Resorts Worldwide. Last year it acquired a 40% stake in the assets of failed Corus Bank.
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