- When the deal closes, Hersha will stop trading on the New York Stock Exchange
- The transaction is expected to close in the fourth quarter of 2023
- KSL Capital invests in travel and leisure businesses
KSL Capital Partners has agreed to acquire Hersha Hospitality Trust, an owner of luxury hotels, in a take private deal.
According to terms of the agreement, KSL will acquire Hersha shares for $10 per share.
When the deal closes, Hersha will stop trading on the New York Stock Exchange.
On the deal, Marty Newburger, a partner at KSL, said in a statement, “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.
Goldman Sachs is serving as financial advisor and Latham and Watkins LLP and Venable LLP are serving as legal advisors to the Transaction Committee of Hersha’s Board of Trustees. Hunton Andrews Kurth LLP is serving as legal advisor to Hersha. Wells Fargo and Citigroup are serving as financial advisors and Simpson Thacher & Bartlett LLP and Miles and Stockbridge P.C. are serving as legal advisors to KSL. Additionally, Wells Fargo and Citigroup provided a debt financing commitment to KSL in connection with the transaction.
Hersha Hospitality Trust’s 25 hotels totaling 3,811 rooms are located in New York, Washington, DC, Boston, Philadelphia, South Florida, and California.
KSL Capital invests in travel and leisure businesses. Since 2005, KSL has raised in excess of $21 billion of capital across its equity, credit and tactical opportunities funds.