Hersha Hospitality holders to receive $25 per share for preferreds

By Mary-Katherine Stinson

Lexington, Ky., Aug. 28 – Hersha Hospitality Trust announced that holders of three series of its redeemable preferred shares will receive $25.00 in cash, plus any accrued and unpaid dividends to which they are entitled, for each preferred share they own, according to an 8-K filed with the Securities and Exchange Commission on Monday.

The series covered in the agreement are the 6 7/8% series C cumulative redeemable preferred shares, 6½% series D cumulative redeemable preferred shares and 6½% series E cumulative redeemable preferred shares.

The payment will be made in connection with Hersha’s acquisition by KSL Capital Partners LLC, in which the company is being bought for $10.00 per share in an all-cash transaction valued at about $1.4 billion.

Closing is expected in the fourth quarter, subject to customary conditions, including shareholder approval.

Hersha Hospitality is a Harrisburg, Pa.-based self-advised real estate investment trust that owns luxury and lifestyle hotels in coastal gateway and resort markets.

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