The Shah family's Hersha Hospitality Trust, based in Philadelphia, has sold a 70% majority interest in seven Manhattan hotels to Cindat Capital Management Ltd., a Chinese investment firm,
The Real Deal
reported.
The deal is worth $571.4 million, the article said.
The hotels are in Times Square, Chelsea, Herald Square and the Financial District and operate under the Holiday Inn, Hampton Inn and Candlewood Suites brands, the
Real Deal
article said.
“The two sides will form a new partnership through which Cindat will be the preferred joint venture partner while Hersha retains a 30 percent equity interest,” the article said.
The report noted that Hersha expects $300 million in net proceeds from the sale and plans to acquire assets in a 1031 exchange (a provision of the Internal Revenue Code that allows an investor to sell a property, reinvest the proceeds in a new property and defer capital gains taxes). As part of the 1031 exchange, Hersha will acquire two Washington, D.C. hotels and will purchase the Sanctuary Beach Resort in Monterey, Calif., the
Real Deal
article said.
Hersha will continue to fully own 10 other hotels in New York City. It also owns hotels in Boston, Philadelphia, Washington, Miami and markets on the West Coast. (Source:
The Real Deal
, Feb. 4, 2016.)
-
1578 reads