Hersha Hospitality Going Private in $1.4B Deal with KSL Capital

On Monday, Hersha Hospitality Trust announced that KSL Capital Partners will acquire all outstanding common shares of the lodging REIT in an all-cash transaction valued at approximately $1.4 billion. This purchase price represents a premium of around 60% over Hersha’s closing share price on August 25th. Neil H. Shah, CEO of Hersh commented: “We are proud to have built a concentrated portfolio consisting of some high quality hotels in their respective markets and this transaction is the result our deliberate actions to focus on key gateway markets and lifestyle and leisure properties.” Marty Newburger from Denver-based private equity firm KSL added: “Hersha has created an impressive portfolio with experiential luxury and lifestyle hotels located in strategic metropolitan areas across North America – we are confident that we can position them for further success over the long term.” Goldman Sachs was appointed as exclusive financial advisor while Latham & Watkins LLP, Venable LLP, Hunton Andrews Kurth LLP , Wells Fargo & Citigroup provided debt financing commitment along with Simpson Thacher & Bartlett LLP as well Miles Stockbridge P.C.. The Ritz Carlton Coconut Grove (pictured) is one example amongst many high quality assets owned by Herhsa Hospitality Trust which will now be taken private by KSL Capital Partners for $1.4 billion – representing a significant premium compared to its previous closing share price