Hersha Hospitality drops $47.5M on SaMo hotel
Hersha Hospitality Trust has nabbed the “green” Ambrose Hotel in Santa Monica for $47.5 million from its original developer, the Trust confirmed.
The 3-star, four-story hotel at 1255 20th Street totals 39,474 square feet and was built in 2003 by entrepreneur Deirdre Wallace. It has 77 rooms in all.
The sale pencils out to a price per square foot of more than $1,200.
“The Ambrose acquisition demonstrates our continuing ability to successfully recycle capital and selectively add to our portfolio of high quality hotels,” said Jay Shah, Hersha’s CEO, in a statement. “The addition of the Ambrose further hones our geographic mix of urban gateway and destination markets, while focusing the company’s resources on high RevPAR lifestyle hotels.”
The company used 1031 exchange proceeds from the recent sale of two suburban Boston hotels to fund the Ambrose acquisition.
Hersha is just the latest investment firm to target the Santa Monica hotel market.
In October, Proper Hospitality announced its latest venture, the Santa Monica Proper, slated to rise at the corner of Seventh Street and Wilshire Boulevard. Created by the Kor Group, which includes Brad Korzen and his wife, celeb interior designer Kelly Wearstler, the SaMo project will be the third Proper property to open in the Los Angeles area.