Center City-based Hersha Hospitality Trust is being taken private by Denver-based KSL Capital Partners in an all-cash transaction valued at $1.4 billion, writes Emma Dooling for the Philadelphia Business Journal.
As part of the deal, KSL affiliates will acquire all of the outstanding common shares of Hersha for $10 per share, which is around 60 percent more than Hersha’s closing share price on Friday.
KSL Capital Partners is a real estate investment trust that owns and operates 25 hotels with 3,811 total rooms. Two of these hotels are in Philadelphia; the Westin Philadelphia and the Rittenhouse Hotel.
Hersha was founded nearly four decades ago by Hasu Shah and went public in 1998. Before he retired in 2022, Shah ran the company together with his two sons, Jay and Neil Shah. They now serve as executive chairman of the board and president and CEO, respectively.
“Following a multi-year comprehensive review by the independent Transaction Committee of Hersha’s Board of Trustees, the Board and management team are confident this step will allow us to deliver value for our shareholders while refocusing on growing the business over a longer period of time,” said Jay Shah.
Read more about Hersha Hospitality Trust’s new deal and the future of the company in the Philadelphia Business Journal.
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