Hersha Purchases Courtyard Alexandria
PHILADELPHIA, PA, Ocotber 3, 2006. Hersha Hospitality Trust (AMEX: HT), a real estate investment trust (REIT) and owner of 63 nationally franchised, upper-upscale, upscale and midscale limited service and extended-stay hotels, today announced that it has completed the purchase of the 203-room Courtyard by Marriott Alexandria, Virginia for $35 million. The Company will use a combination of cash and $25 million in fixed rate first mortgage financing, with an interest rate of 6.25%, to complete the transaction.
The hotel is closely located to Washington, D.C. and Reagan National Airport on Seminary Road near interstate 395, serving the many area private sector businesses and U.S. Government offices such the Department of Defense, the U.S. Postal Service, AT Kearney Executive Search and Public Broadcasting Services, Inc. The property is also convenient to historic Old Town Alexandria and the many tourist attractions of the greater Washington, D.C. area. Marriott will continue to manage the property.
Jay H. Shah, Chief Executive Officer commented, "We are excited to purchase our sixth asset in a strong market with high barriers to entry, at a competitive 8.3% forward cap rate and to have made Marriott our fourth third-party hotel manager with which we do business. We look forward to growing our management relationship with Marriott over time. With the addition of the Courtyard Alexandria, we have increased our leverage to the upscale segment of the hotel industry to more than half of the total rooms in our total portfolio."
Marriott International, Inc. (NASDAQ: MAR) is a global leading lodging company based in Bethesda,Maryland, USA, with more than 4,200 properties in 80 countries and territories. Marriott International reported revenues of nearly $14 billion in fiscal year 2014. The company operates and franchises hotels and licenses vacation ownership resorts under 19 brands, including: The Ritz-Carlton®, BVlgari®, EDITION®, JW Marriott®, Autograph Collection® Hotels, Renaissance® Hotels, Marriott Hotels®, Delta Hotels and Resorts®, Marriott Executive Apartments®, Marriott Vacation Club®, Gaylord Hotels®, AC Hotels by Marriott®, Courtyard®, Residence Inn®, SpringHill Suites®, Fairfield Inn & Suites®, TownePlace Suites®, Protea Hotels® and MoxyHotels®. Marriott has been consistently recognized as a top employer and for its superior business ethics. The company also manages the award-winning guest loyalty program, Marriott Rewards® and The Ritz-Carlton Rewards® program, which together surpass 50 million members. For more information or reservations, please visit our website at 
