Hersha Hospitality Snaps Up Third Hotel In DC’s CBD

By Adrian Maties, Associate Editor

Hersha Hospitality Trust is expanding its presence in the Washington, D.C., area. The REIT recently announced it had entered into a purchase agreement for a hotel in the city’s central business district. It will be Hersha’s third hotel in the CBD.

According to the agreement, Hersha will pay $57 million to buy the St. Gregory Hotel & Suites. It will finance the acquisition with cash on hand and proceeds from its $250 million senior unsecured credit facility. The acquisition includes assumption of $25.8 million in mortgage debt that matures in September 2021. Hersha expects to close the deal by the end of June.

The St. Gregory is a nine-story building located at 21st and M Street, N.W., in D.C.’s DuPont Circle neighborhood. Of its 155 rooms, 101 are suites with kitchens. The rooms were last renovated in the fall of 2014. Amenities include a restaurant and bar, 3,500 square feet of meeting space, exercise facilities and a 50-space underground parking garage. Hersha said in a news release that the hotel operated at an average daily rate of $169.36 and occupancy of 89.5 percent in the trailing 12 months ending April 30, 2015.

Photo credit: www.stgregoryhotelwdc.com