First Free Story (1 of 3)Join Skift Pro
The transaction includes hotels in New York’s Long Island, suburban Philadelphia, Connecticut and Rhode Island, according to a statement today from Harrisburg, Pennsylvania-based Hersha. The company will record a gain of about $30 million.
The deal is timed to “capitalize on private-equity interest in stabilized, select-service assets in suburban markets,” Jay H. Shah, chief executive officer of the real estate investment trust, said in the statement.
Blackstone, the world’s largest alternative-asset firm, is buying hotel properties as the U.S. lodging market recovers, while also taking advantage of the rebound to sell shares of older investments. The New York-based company is preparing initial public offerings of Hilton Worldwide Holdings Inc. and Extended Stay America Inc., and is exploring a stock sale of La Quinta Inns & Suites.
Recent Blackstone purchases include the acquisition of the Motel 6 and Studio 6 budget chains for $1.9 billion last year, and a $1.3 billion deal for Apple REIT Six Inc., a hotel owner, that was completed in May.
Including this deal, Hersha has sold 46 hotels for proceeds of about $460 million since 2008. The company is selling hotels that it considers to be outside its main business, while seeking to expand in Miami and on the West Coast.
Hersha shares gained 3.6 percent to $5.71 at 10:06 a.m. in New York. They have increased 14 percent this year.
Editors: Kara Wetzel and Andrew Blackman.
To contact the reporter on this story: Elizabeth Dexheimer in New York at email@example.com. To contact the editor responsible for this story: Kara Wetzel at firstname.lastname@example.org.