Hersha Boosts Presence in Boston With Four Acquisitions
BOSTON, MA, May 4, 2006. Four area hotels here are now a part of Hersha Hospitality Trust's portfolio following their collective $44 million acquisition. Hersha also acquired the right of first refusal on a fifth area hotel that it may buy.
Three of the hotels were bought from KW Hotel Corp. for $32 million. The properties include the 96-room Residence Inn in North Dartmouth, MA; the 100-room Hawthorn Suites in Franklin, MA; and the 84-key Comfort Inn and Suites in North Dartmouth. As part of this portfolio deal, Hersha acquired the first refusal rights on a 100-unit Residence Inn in Norwood, MA, that is currently under construction and is expected to open in August.
Hersha revealed that Hyatt has invited it to convert the Hawthorn Suites into a Hyatt Summerfield Suites.
The fourth hotel acquired by Hersha was the 112-unit Holiday Inn Express Cambridge in Cambridge, MA. An undisclosed affiliated firm sold the asset to Hersha for $12 million. This purchase was financed with a combination of cash and a floating rate mortgage totaling $8.6 million.
Hersha financed its purchase of the other three hotels from KW Hotel Corp. with cash and fixed mortgages. The loan for the Hawthorn totals $8.5 million and carries a fixed interest rate of 6.4%. The Comfort Inn and Suites was financed with a new loan carrying a fixed rate of 6.5%. The loan totals $3.2 million. Regarding the Residence Inn in North Dartmouth, Hersha assumed a $9.4 million mortgage with a fixed rate of 5.67% in the acquisition of the asset.
In another entirely separate transaction, Hersha has closed on the disposition of its Holiday Inn Express in Hartford, CT. The sale price was $3.6 million, which includes the transfer of the existing land-lease obligations.
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