Attached files
| file | filename |
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| EX-99.1 - EXHIBIT 99.1 - HERSHA HOSPITALITY TRUST | ex99_1.htm |
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date
of Report (Date of earliest event reported): February 11, 2010
(November 11, 2009)
HERSHA
HOSPITALITY TRUST
(Exact
name of registrant as specified in its charter)
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Maryland
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001-14765
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251811499
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(State
or other jurisdiction of incorporation)
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(Commission
File Number)
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(IRS
Employer Identification No.)
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44
Hersha Drive
Harrisburg,
Pennsylvania 17102
(Address
and zip code of
principal
executive offices)
Registrant’s
telephone number, including area code: (717) 236-4400
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions (see General Instructions A.2. below):
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£
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Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
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£
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Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
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£
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Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
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£
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Pre-commencement
communications pursuant to Rule 13e4(c) under the Exchange Act (17 CFR
240.13e-4(c))
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Item
8.01.
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Other
Events.
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On
February 9, 2010, Hersha Hospitality Limited Partnership (“HHLP”), the operating
partnership subsidiary of Hersha Hospitality Trust (the “Company”), closed on
the acquisition of three hotels in New York City, including:
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·
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a
184-room Hampton Inn located at 337 West 39th Street, New York (the
“Hampton Inn Times Square”) from Metro Eleven
LLC;
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·
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a
188-room Candlewood Suites located at 339 West 39th Street, New York (the
“Candlewood Suites Times Square”) from Metro Eleven LLC;
and
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·
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a
210-room Holiday Inn Express located at 343 West 39th Street, New York
(the “Holiday Inn Express Times Square”) from M&R Hotel LLC and
Lincoln Avenue Center, LLC.
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The
sellers of the three hotels are related to each other, but not affiliated with
the Company. The Company previously reported, in a Current Report on
Form 8-K filed on January 12, 2010, the agreements to acquire the Hampton Inn
Times Square and the Candlewood Suites Times Square, as well as a right of first
offer to acquire the Holiday Inn Express Times Square. The initial
purchase agreements were amended, and an additional purchase agreement for the
Holiday Inn Express Times Square (the “New Purchase Agreement”) was entered
into, prior to the closings. The amendments and the New Purchase
Agreement reduced the aggregate purchase price paid for the two initial hotels
and provided for a total purchase price for the three hotels of $165.0 million,
which consisted of $160.5 million in cash and 1,451,613 units of limited
partnership in HHLP. As a result, the total purchase price for each
hotel was as follows:
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Hotel
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Total
Purchase Price
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Hampton
Inn Times Square
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$ 56.0
million
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Candlewood
Suites Times Square
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$ 51.0
million
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Holiday
Inn Express Times Square
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$ 58.0
million
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In
addition, HHLP also paid approximately $4.3 million of closing costs and real
estate taxes and assumed approximately $400,000 in net working capital
liabilities. The cash portion of the purchase price, closing costs
and real estate taxes paid by HHLP at closing was funded with net proceeds from
the Company’s recently completed public offering and with borrowings drawn on
the Company’s revolving credit facility.
Except as
otherwise provided herein, the material terms of the New Purchase Agreement are
substantially similar to the material terms of the two initial purchase
agreements, as described in the Current Report on Form 8-K filed on January 12,
2010.
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Item
9.01.
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Financial
Statements and Exhibits.
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(d) Exhibits.
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Holiday
Inn Express Purchase Contract by and among HHLP Duo Three Associates, as
Buyer, and M&R Hotel LLC and Lincoln Avenue Center, LLC, as Sellers,
dated as of February 1,
2010.
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2
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned thereunto
duly authorized.
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HERSHA
HOSPITALITY TRUST
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Date: February
11, 2010
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By:
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/s/ Ashish R. Parikh |
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Ashish
R. Parikh
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Chief
Financial Officer
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