Hersha Completes Joint Venture with Waterford
HARTFORD, CT, February 09, 2006. Hersha Hospitality Trust has completed its joint-venture investment with the Waterford Hospitality Group in the 409-room Hartford Marriott Downtown here. With the closing of the transaction, Hersha owns a 15% preferred equity interest in the hotel.
The newly built property, located at 200 Columbus Blvd., is connected to the 540,000-square-foot Connecticut Convention Center and anchors the $770 million Adriaen's Landing development, which will include the development of a new science museum, as well as retail, entertainment and residential units. The convention center, which also is being managed by Waterford, opened in June 2005; the hotel opened last August.
Waterford has also agreed to purchase $5.4 million of Hersha Hospitality Trust's 50% interest in the Hilton Hartford, leaving Hersha with a 10% ownership stake. The transaction was originally closed last October.
Hersha will maintain an option to purchase up to a 50% preferred equity interest in both the Hilton and the Hartford Marriott Downtown until Dec. 31, 2007.
With the completion of this acquisition, Hersha currently owns nine hotels within its Mystic Partners joint venture with Waterford. Hersha has invested approximately $40 million in this joint venture and will maintain an 8.5% cash-on-cash participating preferred return on the entire equity investment.
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