Hersha Hospitality Acquires the 188 room Marriott Courtyard-Boston/Brookline for $54.5 million

• 
  SAVE
• 
  SHARE
• 
  TEXT SIZE
• 
  PRINT
• 
  COMMENT
• 
  PDF

. October 14, 2008

PHILADELPHIA, PA, June 16, 2005. Hersha Hospitality Trust, a real estate investment trust (REIT), today announced that it has completed the acquisition of the 188-room Marriott Courtyard Boston/Brookline in Massachusetts from Webster Street Hotel LLC. The stabilized property was purchased for $54.5 million, equal to a forward net operating income capitalization rate of approximately 7 percent. As part of this transaction, Hersha has closed a first mortgage loan with Wachovia for $38.9 million at a 10-year fixed interest rate of 5.35 percent. Hersha Hospitality Management, LP will operate the hotel. "This hotel is a very strong anchor for our Boston cluster and an ideal strategic fit for our portfolio," said Jay H. Shah, president and COO. "The Brookline sub-market has extraordinarily high barriers to entry and this newly-built asset is the prototypical, urban, upscale hotel."

The eight-story Marriott Courtyard Boston/Brookline is located at 40 Webster Street in Brookline, Mass., one mile from Boston and Fenway Park. The distinctive hotel blends sophisticated architecture and premium finishes to cater to its numerous and diverse demand generators. The vibrant area around the property, known as Coolidge Corner, is home to several fine restaurants, boutique shops and entertainment venues. The hotel is also surrounded by some of the nation's most highly regarded hospitals, research institutions, universities, and health care companies. Major demand generators in the immediate area include Beth Israel Deaconess Medical Center, Boston College, Boston University, Brigham and Women's Hospital, Children's Hospital of Boston, Dana Farber Cancer Institute, the Harvard Medical School, and Northeastern University.

"The fact that the Courtyard already provides substantial cash flow and will be immediately accretive even though the hotel is still ramping up and the Boston market is only in the early stages of recovery is a very encouraging combination of factors," added Shah.

The hotel was built from the ground-up and opened April 2003. The hotel features a 140-space underground parking lot, an outdoor public garden, indoor swimming pool and a bar and restaurant. The Coolidge Corner MBTA subway stop is located one block from the hotel, providing a convenient means to explore Boston and its surrounding areas. In addition, the property's proximity to the Massachusetts Turnpike provides guests with easy access to and from Logan Airport.

Hersha Hospitality Trust is a self-advised real estate investment trust that owns midscale and upscale hotels in the eastern United States with strong, national franchise affiliations. The company focuses on acquisition and joint venture opportunities in primary and secondary markets near major metropolitan markets.

Certain matters within this press release are discussed using forward-looking language as specified in the Private Securities Litigation Reform Act of 1995, and, as such, may involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance to differ from those projected in the forward-looking statement.