Skip to content

Search

Latest Stories

Hersha Hospitality to sell 7 properties for $505 million

The company will use the proceeds to provide liquidity and reduce debt of approximately $460 to $480 million

Hersha Hospitality to sell 7 properties for $505 million

REAL ESTATE INVESTMENT firm Hersha Hospitality Trust will sell seven of its select service properties outside New York for $505 million, or approximately $360,000 per key, according to a statement. Proceeds will go to cover some of the company’s debt and provide liquidity.

The properties in the deal are the Hotel Courtyard Brookline, Hampton Inn – Philadelphia, Hilton Garden Inn M Street, Hampton Inn – Washington, Courtyard Sunnyvale, Courtyard Los Angeles Westside and TownePlace Suites Sunnyvale. The transaction is expected to close in the third quarter of 2022 subject to customary closing conditions, the statement added.


The revenue from the sale reduce debt of approximately $460 to $480 million, and around $390 to $410 million of Hersha’s corporate debt. The company also wants to reduce mortgage debt by approximately $75 million. The company also wants to reduce mortgage debt by approximately $75 million.

“We’re pleased to have reached an agreement that supports our long-term strategic objectives and delivers immediate shareholder value,” said Jay Shah, Hersha’s CEO. “With the sale of these non-core properties, we can continue our transformation by deepening our focus on our luxury and lifestyle and New York portfolios – both demonstrating resiliency coming out of the pandemic."

The company also expects to recast its existing credit facility, which would eliminate all corporate-level debt maturities through 2024.

"Our resort markets and lifestyle properties continue to outperform – as reflected in our first quarter financial results – and our purpose-built New York City cluster, coupled with our unique operating model, positions us for strong performances across the recovery," Shah said.

Post the deal, Hersha will own 26 hotels in six key destination markets across

the U.S. The remaining portfolio’s Total RevPAR based on 2019 actual performance would have increased from $206 to $219, total ADR would have increased from $247 to $262, and EBITDA per Key would have increased from approximately $32,000 to $33,000.

During the COVID-19 pandemic, Hersha Hospitality took several measures to reduce its financial burden.

More for you

Wyndham & Grubhub Offer Free Delivery to Guests & Staff

Wyndham, Grubhub offer free delivery to guests, staff

Summary:

  • Wyndham Hotels & Resorts is partnering with Grubhub to offer free product delivery to guests and staff at nearly 6,000 U.S. hotels across 20 brands.
  • A Grubhub account is required to activate the complimentary Grubhub+ membership; no credit card is needed and the membership does not auto-renew.
  • Wyndham recently deployed Elavon’s cloud payments interface to more than 6,000 U.S. and Canadian franchisees.

WYNDHAM HOTELS & RESORTS and Grubhub, an online ordering and delivery platform, will offer item delivery to guests and staff with no delivery fees and other benefits. The service is available at nearly 6,000 U.S. hotels across 20 brands, with orders placed through the Grubhub app on-site or by scanning a hotel QR code.

Keep ReadingShow less
U.S. Hotel Construction Hits 20-Quarter Low in June

CoStar: Hotel construction drops in June

Summary:

  • U.S. hotel rooms under construction fell year over year for the sixth straight month in June, hitting a 20-quarter low, CoStar reported.
  • About 138,922 rooms were under construction, down 11.9 percent from June 2024; the luxury segment had 6,443 rooms, up 4.1 percent year over year.
  • Lodging Econometrics recently said Dallas led all U.S. markets in hotel construction pipelines at the end of the first quarter, with 203 projects and 24,496 rooms.

THE NUMBER OF U.S. hotel rooms under construction declined year over year for the sixth straight month in June, reaching a 20-quarter low, according to CoStar. Additionally, more than half of all rooms under development are in the South, mostly outside the top 25 markets.

Keep ReadingShow less
G6 Hospitality Launches 24/7 Guest Support From August 1
Photo credit: G6 Hospitality

G6 launching 24x7 guest support on Aug. 1

Summary:

  • G6 Hospitality will launch 24x7 guest support on Aug. 1, expanding the current 18-hour window.
  • Escalations from phone, email and social media will be handled promptly by trained staff.
  • The service supports G6’s tech and service investments, including the AI-powered My6 app.

G6 HOSPITALITY, PARENT of Motel 6 and Studio 6, will launch a 24x7 customer support service for guests starting Aug. 1. The service extends the previous 18-hour window to full-day availability via phone, email and social media.

Keep ReadingShow less
U.S. travelers using mobile devices to book independent boutique hotel stays with personalized offers and smart tech in 2025

Study: Personalization boosts independent hotel bookings

Summary:

  • Around 95 percent of U.S. travelers are more likely to book independent hotels with personalized offers, according to TakeUp.
  • 59 percent plan more travel in 2025, with 78 percent favoring weekend getaways and 65 percent domestic trips.
  • Top booking deterrents are few reviews at 39 percent, unclear cleanliness or quality at 38 percent and inflexible cancellations at 29 percent.

PERSONALIZED OFFERS BASED on interests would make 95 percent of U.S. travelers more likely to book at an independent hotel, according to TakeUp, a revenue management platform for independent hotels. About 85 percent are open to technologies such as smart check-in, recommendations and AI-based pricing.

Keep ReadingShow less
Chart showing decline in U.S. extended-stay hotel occupancy and RevPAR in May 2025

Report: May fifth month for drop in extended-stay occupancy

Summary:

  • Extended-stay occupancy fell 2.2 percent in May, the fifth straight monthly decline; ADR and RevPAR also dropped for a second consecutive month.
  • May marked 44 straight months of supply growth for the segment at 4 percent or less, with annual growth below the 4.9 percent long-term average.
  • Extended-stay room revenues rose 0.5 percent, while total industry revenue grew 0.9 percent, led by segments with little extended-stay supply.

EXTENDED-STAY HOTEL occupancy fell 2.2 percent in May, the fifth consecutive monthly decline, exceeding the 0.7 percent drop reported for all hotels by STR/CoStar, according to The Highland Group. Extended-stay occupancy was 10.5 percentage points above the total hotel industry, at the lower end of the long-term average premium range.

Keep ReadingShow less