Skip to content

Search

Latest Stories

Hersha Hospitality Trust, KSL Capital Partners to merge

Under the transaction, KSL Capital affiliates will acquire Hersha’s shares for $1.4 billion

Hersha Hospitality Trust, KSL Capital Partners to merge

HERSHA HOSPITALITY TRUST and KSL Capital Partners, LLC, entered a definitive merger agreement on Aug. 27. Under the agreement, affiliates of KSL will acquire all of the outstanding common shares of Hersha for $10 per share in an all-cash transaction valued at approximately $1.4 billion.

The independent transaction committee of Hersha’s board of trustees recommended the merger and the board unanimously approved it, according to Hersha. The transaction is expected to close in the fourth quarter of 2023, subject to customary closing conditions, including approval by the holders of a majority of Hersha’s outstanding common shares as set forth in the merger agreement


“This transaction provides our shareholders with immediate and certain value at a substantial premium to our public valuation,” said Jay Shah, Hersha’s executive chairman. “Following a multi-year comprehensive review by the independent transaction committee of Hersha’s board of trustees, the board and management team are confident this step will allow us to deliver value for our shareholders while refocusing on growing the business over a longer period of time.”

ENEWS 09 13 23 Hersha acquisition execs From left are Hersha Hospitality Trust’s Jay Shah, executive chairman; Neil Shah, CEO; and Marty Newburger, a partner at KSL Capital Partners.

The purchase price represents a premium of approximately 60 percent over Hersha’s closing share price on Aug. 25, the last full trading day prior to this announcement, according to Hersha. Hersha shareholders will receive $10 in cash for each common share they own, and holders of Hersha’s 6.875 percent Series C Cumulative Redeemable Preferred Shares, 6.50 percent Series D Cumulative Redeemable Preferred Shares and 6.50 percent Series E Cumulative Redeemable Preferred Shares will receive $25 in cash, plus any accrued and unpaid dividends to which they are entitled, for each preferred share they own.

“We are proud of the work our team has done to build on Hersha’s culture and capabilities and make the company what it is today,” Neil Shah, Hersha’s CEO, said. “This transaction is a result of our deliberate actions to focus on key gateway markets and lifestyle and leisure properties, as well as our work to create a concentrated portfolio consisting of some of the highest quality hotels in their respective markets.”

Some members of Hersha’s executive management team and some affiliated trusts signed separate voting agreements under which they agreed to vote certain Hersha shares controlled by each of them in support of the proposed transaction. Hersha’s common shares and preferred shares will no longer be listed on any public securities exchange following completion of the merger.

“Hersha and its team have built an impressive, curated portfolio of experiential luxury and lifestyle hotels and resorts in strategic markets,” said Marty Newburger, a partner at KSL Capital. “With KSL’s extensive track record investing in high-quality assets in dynamic metropolitan markets across North America and around the world, we are uniquely suited to position the business for further success over the long term.”

In May 2022, Hersha sold seven of its select service properties outside New York for $505 million, or approximately $360,000 per key. Proceeds went to cover some of the company’s debt and provide liquidity.

More for you

IHG Ruby Hotels USA launch
Photo credit: IHG Hotels & Resorts

IHG’s Ruby debuts in U.S. market

Summary:

  • IHG launched its 20th global brand, Ruby, in the U.S.
  • The brand offers serves city-centers and urban locations with restrictions.
  • It focuses on major urban markets with new-build, conversion, and adaptive reuse.

IHG HOTELS & RESORTS introduced Ruby Hotels, its 20th global brand, to the U.S. It is designed to fit in city centers and urban locations with entry barriers and space constraints.

Keep ReadingShow less
H-2B visa hospitality impact

Study: H-2B visas boost U.S. jobs and wages

Summary:

  • The H-2B visa program protects U.S. jobs and wages, according to AHLA citing a study.
  • It allows hotels and resorts to meet travelers’ needs while supporting the economy.
  • It provides foreign workers for seasonal jobs when domestic workers are unavailable.

THE H-2B VISA program does not harm U.S. jobs or wages but increases pay and supports the labor force, according to an Edgeworth Economics study. Citing that study, the American Hotel & Lodging Association said the program enables hotels and resorts to meet travelers’ needs while supporting the workforce and economy.

Keep ReadingShow less
Howard Johnson 100th anniversary

HoJo marks centennial with throwback

Summary:

  • Howard Johnson is marking its 100th anniversary with fried clam–shaped soaps.
  • The soaps pay homage to an iconic HoJo menu item.
  • Available at select hotels and for online purchase starting Oct. 3.

HOWARD JOHNSON BY Wyndham marks a century with one of its most famous menu items, the fried clam strip. The brand is introducing limited-edition HoJo’s Original Fried Clam Soap, available at select Howard Johnson hotels across the U.S. and for online purchase beginning Oct. 3.

Keep ReadingShow less
AI digital assistant redefining guest loyalty in U.S. hospitality industry

Study: AI agents redefine hotel loyalty

Summary:

  • The use of AI agents hotels must rethink customer loyalty, a FAU study finds.
  • The paper proposes strategies as AI becomes the main booking channel.
  • Researchers warn of ethical and privacy issues.

HOTELS MUST RETHINK how they build and maintain loyalty as artificial intelligence systems make travel decisions and bookings for consumers, according to a study by Florida Atlantic University. The rise of artificial intelligence agents will complicate hotel customer loyalty management.

Keep ReadingShow less
HAMA Fall 2025 survey results

Survey: Hotels expect Q4 RevPAR gain

Summary:

  • More than 70 percent expect a RevPAR increase in Q4, according to HAMA survey.
  • Demand is the top concern, cited by 77.8 percent, up from 65 percent in spring.
  • Only 37 percent expect a U.S. recession in 2025, down from 49 percent earlier in the year.

MORE THAN 70 PERCENT of respondents to a Hospitality Asset Managers Association survey expect a 1 to 3 percent RevPAR increase in the fourth quarter. Demand is the top concern, cited by 77.8 percent of respondents, up from 65 percent in the spring survey.

Keep ReadingShow less