KSL Buys Hersha Hospitality for $1.4 Billion in Private Equity Bet on Lifestyle Hotels
Photo Caption: Cadillac Hotel and Beach Club in Miami. Public spaces designed by Bill Rooney Studio. Source: HHM Hospitality.
Skift Take
Smaller owners of hotels are finding it tough to compete against giant players like Host. The Hersha takeover may not be the last opportunistic move by private equity we see in the lifestyle hotel segment.
Private equity firm KSL said on Monday it intends to buy Hersha Hospitality Trust, the owner of 25 U.S. lifestyle and luxury hotels, in an all-cash transaction worth about $1.4 billion. The move would take private Hersha at an approximately 60% premium to the real-estate investment trust's closing stock price on Friday.
The deal is slated to close by year-end after shareholders okay the move. Its value was 14 times Hersha's estimated year-to-date earnings before interest, taxes, depreciation, and
