Philly chain sells NYC hotel for $529,000/room
Hersha will "deploy" cash to "higher-growth" hotels -- or buybacks
Hersha Hospitality Trust, of Center City, says it's sold its 70-room Hotel 373 in Midtown Manhattan to a group of unidentified foreign investors for $37 million, or $529,000 per room (key).
"We remain optimistic regarding the long-term prospects of the New York City hotel market," but are using this sale to unload a "high-yielding, stabilized" hotel and "redeploy" the cash into "higher growth opportunities" -- or else buy back Hersha sales to drive the stock price higher, said ceo Jay H. Shah in a statement.
Hersha also owns Center City's Rittenhouse hotel. Under Shah and his brother Neil, the company, founded by the brothers' father and named for their mother, has been selling motels and lower-end hotels and focusing more on middle and higher-end properties in major coastal cities.