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Hersha Hospitality Trust Acquires Ambrose Hotel

Investor Sells 77-Room Santa Monica Hospitality Bldg for $47.5M
December 8, 2016
Hersha Hospitality Trust (NYSE: HT) a Philadelphia-based REIT focused on upscale hotels in urban gateway markets, has acquired the 77-room Ambrose Hotel at 1255 20th St. in Santa Monica, CA from Dinuba Realty Holdings for $47.5 million, or about $617,000 per room.

The 39,474-square-foot hospitality building was constructed in 2003 on one-third of an acre in the Santa Monica submarket of Los Angeles County. In 2015 the asset underwent $3 million in renovations and in 2008 the assest was awarded LEED Silver certification from the USGBC. It features a two-level, 82-stall parking garage in addition to executive meeting space and a fitness center.

The buyer utilized a 1031 exchange, tapping proceeds from the recent sale of two suburban Boston hotels, to fund its acquisition of the Ambrose Hotel.

"The Ambrose acquisition demonstrates our continuing ability to successfully recycle capital and selectively add to our portfolio of high quality hotels. We remain focused on monetizing value that we have created in stabilized secondary market hotels and redeploying those gains into high-growth hotels in valuable gateway markets. Across 2016, the company acquired five preeminent hotels in Monterey, Washington DC, Boston, Silicon Valley and Santa Monica for $380.9 million," said Jay H. Shah, Hersha’s CEO. "The addition of the Ambrose further hones our geographic mix of urban gateway and destination markets, while focusing the Company’s resources on high RevPAR lifestyle hotels. We have strong conviction in Santa Monica’s sound lodging fundamentals and growing real estate values. Santa Monica is a true seven-day-a-week destination supported by a multiplicity of demand generators, with minimal seasonality and some of the highest barriers to entry in the United States."

Please see CoStar COMPS #3771356 for more information on this transaction.
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