Shares in Hersha Hospitality Trust rose sharply following news the real estate investment trust had sold stakes in seven hotels in Manhattan to Chinese investment company Cindat Capital Management.
Cindat will pay $571.4m for a 70% stake in a joint venture formed to hold the hotels. The hotels, branded as Hampton Inns, Holiday Inns or Candlewood Suites, comprise 1,087 rooms.
Hersha will use some of the proceeds from the deal to buy two Washington hotels – paying $50m for the Ritz-Carlton Georgetown and $106.5m for the Hilton Garden Inn M Street.
