Hersha Hospitality Trust to Sell Hotel Milo Santa Barbara

– Net Proceeds are anticipated to be used for normal company functions together with, however not restricted to, extra debt reimbursement and dividend funds –

– Price implies a blended 2.9% cap charge and 27.0x EBITDA a number of on 2019 outcomes and a $455K per key valuation –

PHILADELPHIA, Sept. 12, 2022 (GLOBE NEWSWIRE) — Hersha Hospitality Trust (NYSE: HT) (“Hersha” or the “Company”), proprietor of luxurious and way of life lodges in coastal gateway and resort markets, in the present day introduced that it has entered into definitive agreements to promote two of its West Coast properties for gross proceeds of $125 million, or roughly $455,000 per key.

Mr. Jay H. Shah, Hersha’s Chief Executive Officer, acknowledged, “We’re pleased to have reached two separate agreements that are expected to increase our operational flexibility while furthering our long-term strategic objectives and delivering immediate shareholder value. The valuation of these two assets is yet another confirmation of the public-to-private market valuation gap for our portfolio, and we believe pricing on these two assets is more representative of the remaining portfolio than prior dispositions.”

Hersha intends to use the proceeds from the sale to pay down roughly $45 million of debt and expects to make the most of the rest for normal company functions together with, however not restricted to, extra debt reimbursement and dividend funds.

These transactions are topic to customary closing situations and are anticipated to shut within the fourth quarter of 2022, topic to customary closing situations.

In conjunction with this launch, the Company has posted an up to date investor relations presentation and a presentation of supplemental data detailing the influence of transactions accomplished this 12 months on its web site within the Investor Relations part beneath “Presentations”.

Hersha Hospitality Trust (HT) is a self-advised actual property funding belief within the hospitality sector, which owns and operates luxurious and way of life lodges in coastal gateway and resort markets. The Company’s 30 lodges totaling 4,544 rooms are situated in New York, Washington, DC, Boston, Philadelphia, South Florida, and choose markets on the West Coast.

The Company’s frequent shares are traded on The New York Stock Exchange beneath the ticker “HT.” For extra data on the Company, and the Company’s resort portfolio, please go to the Company’s web site at www.hersha.com.

Forward Looking Statement

This press launch accommodates forward-looking statements throughout the that means of the Private Securities Litigation Reform Act of 1995, and, as such, might contain recognized and unknown dangers, uncertainties and different elements that will trigger the precise outcomes or efficiency to differ from these mirrored within the forward-looking assertion, together with, with out limitation, the Company’s potential to shut on the pending transactions on the phrases and timing it expects, if in any respect, and the Company’s analysis of market valuations for its property. Forward-looking statements are usually identifiable by use of forward-looking terminology reminiscent of “believe,” “could,” “outlook,” “consider,” “expect,” “anticipate,” “forecast,” “project,” “likely,” “estimate,” “plan,” “continue,” “intend,” “should,” “may” and phrases of comparable import. Because these forward-looking statements relate to future occasions, the Company’s plans, methods, prospects and future monetary efficiency, and contain recognized and unknown dangers which can be troublesome to predict and could also be exterior the Company’s management, they don’t seem to be ensures of future outcomes and are topic to dangers, uncertainties and assumptions that would trigger precise outcomes to differ materially from these expressed in any forward-looking assertion. Therefore, you shouldn’t depend on any of those forward-looking statements. For an outline of things that will trigger the Company’s precise outcomes or efficiency to differ from its forward-looking statements, please assessment the knowledge beneath the heading “Risk Factors” included within the Company’s most up-to-date Annual Report on Form 10-Okay and subsequent Quarterly Reports on Form 10-Q filed by the Company with the Securities and Exchange Commission (“SEC”) and different paperwork filed by the Company with the SEC from time to time. All data supplied on this press launch, except in any other case acknowledged, is as of September 12, 2022, and the Company undertakes no obligation to replace this data except required by legislation.