Skip to content

Search

Latest Stories

Hersha, KSL Capital finalize acquisition

The REIT has now gone private, delisted from the NYSE

Hersha, KSL Capital finalize acquisition

HERSHA HOSPITALITY TRUST and KSL Capital Partners, LLC, have finalized KSL’s acquisition of the REIT for approximately $1.4 billion. As of Nov. 28, Hersha became a private company and was delisted from the New York Stock Exchange.

The companies entered a definitive merger agreement on Aug. 27 under which affiliates of KSL acquired all of the outstanding common shares of Hersha for $10 per share in an all-cash transaction. The companies filed paperwork with the Securities and Exchange Commission on Nov. 28 to make it official.


The independent transaction committee of Hersha’s board of trustees recommended the merger and the board unanimously approved it, according to Hersha. A special meeting of shareholders was held Nov. 8 to give final approval to the deal.

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 the initial 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.

“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.”

Hersha owns and operates luxury and lifestyle hotels in coastal gateway and resort markets. Its portfolio includes 25 hotels with 3,811 rooms in New York, Washington D.C., Boston, Philadelphia, South Florida and California.

“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.”

Hasu Shah, Hersha’s chairman emeritus, founded the company in 1984 with the purchase of a single hotel in Harrisburg, Pennsylvania. In 1998, the company went public as a REIT.

More for you

Red Roof partners with FreedomPay to streamline payments in 700+ U.S. hotels
Photo credit: Red Roof

Red Roof taps FreedomPay for 700+ hotels

Summary:

  • Red Roof is contracting with FreedomPay to provide payments across its 700+ U.S. hotels.
  • The company will gain an integrated solution, improved service, cost savings and efficiency.
  • The company is investing in people and technology to advance the brand, president Zack Gharib told Asian Hospitality.

RED ROOF IS contracting with FreedomPay to provide payments across its portfolio of more than 700 hotels in the U.S. The company will receive an integrated payment solution, upgraded service, cost savings and operational efficiency, according to a statement.

Keep ReadingShow less
Gen Z Shifts Hotel Shopping: Tech, Experiences & Values

Survey: Gen Z redefines hotel shopping

Summary:

  • Younger consumers are redefining hotel discovery through platform-hopping and peer input, according to SOCi.
  • Fragmented search and discovery are reshaping how trust is built.
  • About one-third of consumers aged 18–34 report less brand loyalty than a year ago.

GEN Z IS RESHAPING hotel shopping through multiple platforms, peer input and real-time research, according to SOCi, a marketing platform for multi-location businesses. Unlike previous generations who relied on a single search engine or map app, the younger consumer moves through a series of smaller decisions - starting on TikTok, checking Reddit or Yelp and ending with a Google Maps search.

Keep ReadingShow less
Hotel Tech Advances; Outpaces Operational Readiness

Report: Tech outpaces readiness in hotels

  • A gap is growing between technological potential and operational readiness, with many hotel teams still early in AI use.
  • Distribution teams are evolving with limited resources and uneven investment in talent and automation.
  • The report outlines how commercial teams in hospitality are managing transformation.

THERE IS A widening gap between technological potential and operational readiness, with many hotel staff still early in using AI effectively, according to “The State of Distribution 2025” report. Despite the availability of technology, training, systems and workflows remain in development.

The second edition of the industry benchmark report—published by NYU SPS Jonathan M. Tisch Center of Hospitality and its Hospitality Innovation Hub, in collaboration with RateGain Travel Technologies and HEDNA—noted that as traveler expectations rise, aligning people, processes and platforms is becoming a driver of performance.

Keep ReadingShow less
Twin Cities Pipeline Flow Hits 15‑Year Low: Major Impact

Report: Twin Cities pipeline at 15-year low

Minneapolis–St. Paul Hotel Pipeline Falls to 15-Year Low in 2025

FEWER THAN 250 HOTEL rooms were under construction in the Minneapolis–St. Paul metro at the start of 2025, the lowest level since 2010, according to Marcus & Millichap. The limited pipeline, however, signals strong demand for existing inventory.

Marcus & Millichap’s “2025 Hospitality Investment Forecast for Minneapolis–St. Paul” projects metro-wide occupancy will rise for a sixth straight year to 59.4 percent, above the past decade’s average but still below pre-pandemic levels.

Keep ReadingShow less
Peachtree Group's Residence Inn by Marriott under construction in downtown San Antonio, topping out milestone reached, June 2025

Peachtree tops out San Antonio Residence Inn

Peachtree Hotel to Open in Summer 2026 with 117 Extended-Stay Rooms

PEACHTREE GROUP HELD a “topping out” for its Residence Inn by Marriott in downtown San Antonio, Texas, marking completion of the structural phase of the 10-story, 117-room hotel. The property, co-developed with Austin-based Merritt Development Group, is scheduled to open in summer 2026.

The extended-stay hotel will be owned by Peachtree and managed by its hospitality management division, the company said in a statement.

Keep ReadingShow less