Search the web
Welcome, Guest
[Sign Out, My Account]
EDGAR_Online

Quotes & Info
Enter Symbol(s):
e.g. YHOO, ^DJI
Symbol Lookup | Financial Search
HT > SEC Filings for HT > Form 8-K on 25-Sep-2013All Recent SEC Filings

Show all filings for HERSHA HOSPITALITY TRUST | Request a Trial to NEW EDGAR Online Pro

Form 8-K for HERSHA HOSPITALITY TRUST


25-Sep-2013

Entry into a Material Definitive Agreement, Financial Statements and Exh


Item 1.01 Entry into a Material Definitive Agreement.

On September 20, 2013, Hersha Hospitality Trust (the "Company"), through certain subsidiaries, entered into a purchase and sale agreement with BRE NE Hospitality Holdings LLC ("BRE NE"), an affiliate of Blackstone Real Estate Advisors L.P, pursuant to which the Company has agreed to sell to BRE NE 16 non-core hotel properties for an aggregate purchase price of approximately $217.0 million. The transaction is expected to close by the end of the first quarter of 2014 and is subject to the satisfaction of customary closing conditions, including the receipt of lender and franchisor consents. Accordingly, no assurance can be given that the transaction will close as expected or at all.

The 16 hotel properties to be sold to BRE NE are as follows:

                                                                       Outstanding
                                                                    Principal Balance,
                                                                     as of August 31,
                                                                    2013, of Mortgage
                                                                    Debt to be Assumed
                               Number of                                or Repaid
Franchise                        Rooms           Location             (in thousands)
Holiday Inn Express                 133        Hauppauge, NY       $         8,888  (2)
Hampton Inn                         161       Brookhaven, NY                13,012  (2)
Hampton Inn                          98       West Haven, CT                      -
Hampton Inn                         101       Smithfield, RI                      -
Courtyard by Marriot                118        Langhorne, PA                13,948  (1)
Residence Inn                       100        Langhorne, PA                      -
Holiday Inn Express                  88        Langhorne, PA                 5,928  (1)
Holiday Inn Express & Suites        155     King of Prussia, PA             11,721  (1)
Courtyard by Marriot                130          Ewing, NJ                        -
Hyatt House                         128       Bridgewater, NJ               14,492  (1)
Courtyard by Marriot                 78       Wilmington, DE                 7,259  (2)
Inn at Wilmington                    71       Wilmington, DE                 4,263  (2)
TownePlace Suites                   107       Harrisburg, PA                      -
Holiday Inn Express                  78         Hershey, PA                       -
Residence Inn                        78        Carlisle, PA                       -
Hampton Inn & Suites                110         Hershey, PA                       -
                                                                   $        79,511  (1)

(1) The total outstanding principal balance, as of August 30, 2013, of the mortgage debt to be assumed by BRE NE at the closing, subject to the receipt of lender consents, will be approximately $46.1 million. At the closing, the total outstanding principal balance of the mortgage debt that is expected to be assumed by BRE NE will be less than $46.1 million as a result of the amortization of principal. The outstanding principal balance of the mortgage debt that is expected to be assumed by BRE NE will be applied and credited toward payment of the aggregate purchase price.

(2) The total outstanding principal, as of August 30, 2013, of the mortgage debt that is expected to be repaid by the Company at the closing will be approximately $33.4 million. At the closing, the total outstanding principal balance of the mortgage debt that is expected to be repaid by the Company will be less than $33.4 million as a result of the amortization of principal.


At the closing, deposits aggregating $9.2 million will be applied and credited toward payment of the aggregate purchase price. The Company anticipates receiving, after the repayment of mortgage debt, total cash proceeds of approximately $137.5 million, excluding deal costs, from the sale of the 16 non-core hotel properties to BRE NE.

The foregoing summary of the purchase and sale agreement does not purport to be complete and is qualified in its entirety by reference to the actual text of the purchase and sale agreement, a copy of which has been filed as Exhibit 10.1 to this Current Report on Form 8-K and incorporated by reference herein.

The purchase and sale agreement is subject to closing conditions and other terms and conditions customary for real estate transactions and no assurances can be given that the transactions contemplated by the agreement will close during the first quarter of 2014 or at all. The purchase and sale agreement contains representations and warranties of the parties thereto made to and solely for the benefit of each other, and such representations and warranties should not be relied upon by any other person. The assertions in those representations and warranties were made solely for purposes of the transactions contemplated by the purchase and sale agreement and are subject to important qualifications and limitations agreed to by and between the parties in connection with negotiating the purchase and sale agreement. Accordingly, security holders should not rely on the representations and warranties as accurate or complete in characterization of the actual state of facts as of any specified date because such representations and warranties are modified in important part by the underlying disclosure schedules, are subject to a contractual standard of materiality different from that generally applicable to security holders and were used only for the purpose of conducting certain due diligence inquiries and allocating risks and not for establishing all material facts with respect to the matters addressed.



Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

10.1 Purchase and Sale Agreement (regarding the sale of sixteen hotel properties), dated September 20, 2013, by and among 2144 Associates Hershey, 3144 Associates, Sawmill Three, LLC, 44 Hersha Smithfield, LLC, HHLP Brookhaven Associates, LLC, HHLP Harrisburg Friendship, LP, 44 Carlisle Associates, HHLP Langhorne One Associates, LP, Inn America Hospitality at Ewing, LLC, HHLP Wilmington Associates, LP, HHLP Oxford Valley Associates, LP, HHLP Hauppauge Associates, LLC, HHLP King of Prussia Associates, LP, HHLP Bridgewater Associates, LLC and HHLP Wilmington Associates, LP individually and collectively as sellers, and BRE NE Hospitality Holdings LLC, or its designee, as purchaser.


  Add HT to Portfolio     Set Alert         Email to a Friend  
Get SEC Filings for Another Symbol: Symbol Lookup
Quotes & Info for HT - All Recent SEC Filings
Sign Up for a Free Trial to the NEW EDGAR Online Pro
Detailed SEC, Financial, Ownership and Offering Data on over 12,000 U.S. Public Companies.
Actionable and easy-to-use with searching, alerting, downloading and more.
Request a Trial      Sign Up Now


Copyright © 2014 Yahoo! Inc. All rights reserved. Privacy Policy - Terms of Service
SEC Filing data and information provided by EDGAR Online, Inc. (1-800-416-6651). All information provided "as is" for informational purposes only, not intended for trading purposes or advice. Neither Yahoo! nor any of independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. By accessing the Yahoo! site, you agree not to redistribute the information found therein.