WASHINGTON, DC— Harrisburg, PA-based Hersha Property Trust has found the hotel market in Washington DC hospitable enough to make another acquisition following its June 2015 acquisition of the St. Gregory Hotel for $57 million.
The REIT has acquired the Ritz-Carlton Georgetown, located at 3100 South St., NW. It paid $32.5 million, according to public records, $377,907 per key to the Millennium Partners in New York City.
DC's hotel market finally started to move again this summer; indeed one of the tangible indicators was Hersha's acquisition of the St. Gregory.
The company's most recent financials, its third quarter earnings which it reported in October 2015, showed why. Year to date, the REIT was up close to 10% in the Washington DC area despite an admittedly weak convention calendar for the quarter. For the quarter, the REIT was up 3% in the District and 2% for the larger metro area.
"We continue to be bullish about Washington in the coming years," president Neil Shah said during the earnings call, pointing to "the resumption of government spending, a stronger convention calendar and the upcoming presidential change in the guard."
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