HARRISBURG, PA-With $1.5 million in state funding, the Hersha Group of Cos. has acquired and totally renovated a 52,000-sf former nursing home at the intersection of N. Front and Muench streets, which was vacated in 2002. The total cost of the acquisition and renovation is slightly less than $5 million.

Hersha Group, the parent of Philadelphia-based Hersha Hospitality Trust and related companies here and in Philadelphia, is relocating and expanding from its previous headquarters in the Holiday Inn and Conference Center in nearby New Cumberland, which it owns, according to a Hersha spokeswoman. With relocation to the new headquarters, Muench Street has been renamed Hersha Drive. It is near the Riverfront Inn on Front Street, which is the first hotel acquired by Hasu Shah, who founded the company, named after his wife, in 1983.

The state funding package from the Department of Community and Economic Development includes a loan of approximately $1.4 million through the Pennsylvania Industrial Development Authority, a $50,000 grant through the Opportunity Grant Program, and $100,000 in job creation tax credits. Hersha Group will retain and create a total of 110 jobs in this location.

The four-story building contains dining facilities, an exercise room and a four-story atrium with a view of the Susquehanna River. In addition to its hospitality REIT, which owns interests in 68 hotel properties, the Hersha Group of Cos. includes Hersha Hospitality Management, which operates more than 50 hotels; Hersha Development Corp., which develops new hotels; and construction, interiors and supply firms that serve the hospitality industry.

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