Hersha Hospitality Trust is spending nearly $51 million to acquire two hotels in the Miami's South Beach Autograph Portfolio.
The real estate investment trust, which has offices in Harrisburg, Philadelphia and New York City, announced a definitive agreement today on the hotels, which have a combined 145 rooms.
"The proposed acquisition of the South Beach Autograph Portfolio is a continuation of Hersha's strategy to increase its presence in the Miami Beach submarket, following the non-core portfolio sale announced in September, and characterizes the company's commitment to redeploy capital and invest in assets that deliver higher growth," said CEO Jay Shah.
The 75-room Blue Moon Hotel and the 70-room Winter Haven Hotel underwent a comprehensive $9 million renovation that wrapped up this year. They are in the heart of the highly desirable South Beach Art Deco District.
"Combined with the new tower opening at the Cadillac Courtyard Oceanfront, Hersha will control a significant portion of Marriott-branded assets on Miami Beach," Shah said.
Upon closing of the transaction, the hotels will be managed by Hersha Hospitality Management, or HHM. Hersha is covering the transaction with cash on hand as well as a portion of the $138 million in net proceeds generated from the noncore portfolio sale.
The deal is expected to close by the end of the fourth quarter.
On Monday, Hersha's board declared a cash dividend of 50 cents per Series B preferred share and 43 cents per Series C preferred share for the fourth quarter. The preferred share dividends are payable Jan. 15, 2014, to holders of record as of Jan. 1.
In addition, the board declared quarterly cash dividends of 6 cents per common share and per limited partnership unit. The common share dividend and limited partnership unit distribution are payable Jan. 16 to holders of record as of Jan. 2.