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Hersha Hospitality sells Manhattan hotel for $32M

Upscale-hotel owner Hersha Hospitality Trust, which has corporate offices in Harrisburg and Philadelphia, has sold one of its hotels in New York City.

Hersha said today it has sold its 81-room Hampton Inn Financial District hotel for $32.4 million. The company opened the hotel in Manhattan in the summer of 2014.

Shamin Hotels, a Virginia-based hotel operator, is the reported buyer, according to the Richmond Times-Dispatch.

“While we remain bullish on the Manhattan lodging market, this was an opportunistic sale,” CEO Jay Shah said in a statement.

Hersha officials said the sale will help fund share buybacks of company stock.

Over the past two years, the company has sold 19 hotels for $900 million. Hersha often uses the proceeds from hotel sales to buy new hotels in higher-growth markets. For example, the company bought two hotels in Miami and Seattle last year following a sale in suburban Washington, D.C.

After its Manhattan deal, Hersha retains 48 hotels with more than 7,500 rooms in New York, Washington, D.C., Boston, Philadelphia, South Florida and select markets on the West Coast. Shares of company stock are traded on the New York Stock Exchange under the ticker HT.

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