Hersha Hospitality Snaps Up Third Hotel In DC’s CBD
- Jun 16, 2015
Hersha Hospitality Trust is expanding its presence in the Washington, D.C., area. The REIT recently announced it had entered into a purchase agreement for a hotel in the city’s central business district. It will be Hersha’s third hotel in the CBD.
According to the agreement, Hersha will pay $57 million to buy the St. Gregory Hotel & Suites. It will finance the acquisition with cash on hand and proceeds from its $250 million senior unsecured credit facility. The acquisition includes assumption of $25.8 million in mortgage debt that matures in September 2021. Hersha expects to close the deal by the end of June.
The St. Gregory is a nine-story building located at 21st and M Street, N.W., in D.C.’s DuPont Circle neighborhood. Of its 155 rooms, 101 are suites with kitchens. The rooms were last renovated in the fall of 2014. Amenities include a restaurant and bar, 3,500 square feet of meeting space, exercise facilities and a 50-space underground parking garage. Hersha said in a news release that the hotel operated at an average daily rate of $169.36 and occupancy of 89.5 percent in the trailing 12 months ending April 30, 2015.
Photo credit: www.stgregoryhotelwdc.com