An affiliate of the Blackstone Group LP had agreed to purchase 16 hotels from the Hersha Hospitality Trust for the amount of USD217 million. This would expand the property portfolio of the largest real estate hedge fund firm in the world.
The transfer listed hotels in the Long Island region of New York as suburban residences of Connecticut, Philadelphia and Rhode Island. The said sale was confirmed by Hersha, who from its Harrisburg, PA headquarters stands to receive of nearly USD30 million.
The deal, according to Hersha Real Estate Investment Trust CEO Jay H. Shah, through a statement, is in line to 'capitalize on private equity interest in stabilized, select service assets in suburban markets.'
Blackstone has been purchasing properties in the US lodging market as it trudges towards recovery. The firm has also been taking advantage of initial public offers made by HIlton Worldwide Holdings iNc and Extended Stay America Inc It is also studying its options on the stock sale of La Quinta inns and Suites.
Other purchases done include Motel 6 and Studio 6 budget chain hotels at a cost of USD1.9 billion last year as well as the purchase of Apple REIT Six Inc worth USD1.3 billion that was completed last May.
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