Hersha Hospitality Trust (HT), the owner of upscale and select service hotels, said Monday that it has purchased the remaining 50 percent interest in a 130-room Courtyard by Marriott located in Ewing for assumption of debt and nominal cash consideration.
Hersha initially acquired 50 percent interest in Courtyard Ewing in 2004. Since the initial acquisition, Courtyard Ewing has been accounted for as an unconsolidated joint venture investment but will now become a consolidated asset as of the third quarter of 2012.
Jay Shah, Chief Executive Officer of the company, said, "With the completion of this transaction, we now anticipate that less than eight percent of our 2013 Adjusted EBITDA will be generated from our portfolio of unconsolidated joint ventures as our ongoing efforts to simplify our capital structure and to limit our exposure to joint venture investments have proven to be effective."
Prior to the closing of the transaction, Hersha Hospitality repaid the first mortgage loan secured by the Courtyard Ewing Hotel and entered into a new $9.15 million revolving line of credit secured by a mortgage on the hotel.
The revolver bears interest at a rate of LIBOR plus 3.50 percent with a floor of 4.25 percent and matures in August 2014.
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