Hersha sells seven Manhattan hotels to China Cinda for $571M

Chinese firm acquires 70 percent stake in limited service hotels totaling nearly 1,100 rooms

TRD New York /
Feb.February 04, 2016 03:59 PM

Hersha Hospitality Trust sold a 70 percent majority interest in seven Manhattan hotels to Chinese investment firm Cindat Capital Management in deal worth $571.4 million, the Philadelphia-based hotel operator announced Thursday.

The deal involves seven limited service hotels in Times Square, Chelsea, Herald Square and the Financial District operating under the Holiday Inn, Hampton Inn and Candlewood Suites brands. The hotels hold 1,087 rooms in total, with Cindat paying $526,000 per key in the transaction.

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 transaction is expected to close before the end of the first quarter.

Hersha expects $300 million in net proceeds from the sale, and plans to use taxable gains of $170 million to $180 million from the deal to acquire assets in a 1031 exchange.

The hotel company said it has already “accounted for a significant portion of the 1031 exchange,” announcing the acquisition of two Washington, D.C., hotels for a combined $156.5 million and its purchase of the Sanctuary Beach Resort in Monterey, Calif., for nearly $40 million.

Hersha will continue to fully own 10 other hotels totaling nearly 1,400 rooms in New York City, it said, including the Hyatt Union Square.

Cindat, a U.S. subsidiary of China Cinda Asset Management, recently acquired a $135 million equity stake in Bizzi & Partners Development’s planned luxury condo tower at 565 Broome Street in Soho. – Rey Mashayekhi


Related Articles

arrow_forward_ios
Alex Sapir and the NoMo Soho hotel at 9 Crosby Street (Credit: NoMo SoHo)

Sapir Corp.’s stock drops in Tel Aviv

181 Varick Street (Credit: Google Maps)

Claremont Companies buys Soho Marriott for $59M

Rendering of the Staybridge Suites at 38-59 11th Street

Long Island City hotel project moves forward with construction loan

Heritage Equity Partners’ Toby Moskovits, Benefit Street Partners real estate managing director Micah Goodman, and the Williamsburg Hotel at 96 Wythe Avenue (Credit: Google Maps)

Toby Moskovits’ Williamsburg Hotel is headed for receivership following $68M loan default

461 West 34th Street with Marx Development Group's David Marx (Credit: Google Maps)

David Marx lands $202M refi for Hudson Yards hotel

30 West 31st Street and 52 West 36th Street (Credit: Google Maps)

South Korean firm snaps up two Midtown hotels for $137M

Brookfield Property Group CEO Brian Kingston and 652 11th Avenue (Credit: Google Maps)

Brookfield drops $83M on Hell’s Kitchen hotel

Mensur Cekic, Hudson Yards’ director of residences

From private tutors to meditation sessions, inside NYC’s new amenities battle

arrow_forward_ios
Loading...