Hersha Hospitality Trust has agreed to purchase seven extended-stay Hyatt Summerfield Suites hotels from LodgeWorks L.P. for $169 million, according to Molinaro Koger, which marketed the portfolio and structured the sale.
The properties, which amount to 1,005 suites, are in markets with high barriers to entry in the Northeast, Mid-Atlantic and West Coast. Wichita, Kan.-based LodgeWorks will continue to manage the hotels after the sale.
Hersha plans to invest another $2.5 million in capital improvements in the hotels after the purchase. “We could not pass up this transaction for many reasons, but foremost it is projected to be accretive to our earnings in 2007,” says Jay H. Shah, CEO of Hersha.