KSL Capital Partners, LLC, the owner of Australia’s Baillie Lodges, has struck a definitive merger agreement to acquire Hersha Hospitality Trust in the United States, owner of luxury and lifestyle hotels in coastal gateway and resort markets across the country.
The US$1.4 billion deal will see KSL add 25 luxury and lifestyle hotels in coastal gateway and resort markets to its overall stable. Those properties amount to 3,811 keys in cities in New York, Washington DC, Boston, Philadelphia, South Florida and California.
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Among hotels within the stable are The Cadillac Hotel and Beach Club in Miami Beach, Parrot Key Hotel & Resort in Key West, The St. Gregory Hotel in Washington DC, The Ambrose Hotel in Santa Monica, The Envoy Hotel in Boston, The Rittenhouse in Philadelphia, along with Ritz-Carlton hotels in Georgetown (Washington DC) and Coconut Grove (Miami).
KSL will acquire all of the outstanding common shares of Hersha for US$10.00 per share in an all-cash transaction valued at approximately US$1.4 billion, with the intention to take the company private. The purchase price represents a premium of approximately 60% over Hersha’s closing share price on 25 August 2023.
Marty Newburger, Partner at KSL, said: “Hersha and its team have built an impressive, curated portfolio of experiential luxury and lifestyle hotels and resorts in strategic markets. With KSL’s extensive track record investing in high-quality assets in dynamic metropolitan markets across North America and around the world, we are uniquely suited to position the business for further success over the long term.”
The transaction is expected to close in the fourth quarter of 2023, subject to customary closing conditions.
Lead image: The Ambrose Hotel, Santa Monica