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Blue Moon Hotel at 944 Collins Avenue.
Hersha Hospitality Trust
Seven years after acquiring the Blue Moon Hotel in Miami Beach, Hersha Hospitality Trust recently flipped the historic Art Deco property for nearly double what the company originally paid.
Hersha entered into a binding sales contract with an undisclosed buyer to sell the Blue Moon Hotel at 944 Collins Avenue for $30 million. In 2013, Hersha paid $16.7 million for the 75-room property, which is located in Miami Beach’s Art Deco Historic District. The deal also includes the sale of Hersha’s Duane Street Hotel in New York City for $20 million and the company announced it was exiting 50% ownership of two hotels in Boston.
“The anticipated sales of the Blue Moon Hotel & Duane Street Hotel at very attractive pricing highlights the inherent value of Hersha’s Miami Beach and New York City portfolios,” said Jay H. Shah, Hersha’s Chief Executive Officer. “And [it] demonstrates the strong domestic and international interest from public and private groups seeking premier real estate in top U.S. gateway markets. “
Shah said the sale of the Blue Moon Hotel and the three other properties represents a significant gain on Hersha’s investment and simplified the company’s structure. “Each of these transactions occurred as a result of our strategy to reduce our leverage profile by selling lower EBITDA-producing hotels for valuations exceeding those ascribed to our current stock valuation,” Shah said.
He noted Hersha will realize taxable gains of approximately $31 million.
Hotel transaction volume is on the rise heading into the first quarter of 2020, according to a Q4 2019 report by hospitality advisory firm The Plasencia Group. “Assets with good locations and flags continue to attract record amounts of investor interest and command value premiums,” the report states. “With so many buyers interested in assets across Florida, it is still an opportune time to consider selling.”
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Blue Moon Hotel at 944 Collins Avenue.
Hersha Hospitality Trust
Seven years after acquiring the Blue Moon Hotel in Miami Beach, Hersha Hospitality Trust recently flipped the historic Art Deco property for nearly double what the company originally paid.
Hersha entered into a binding sales contract with an undisclosed buyer to sell the Blue Moon Hotel at 944 Collins Avenue for $30 million. In 2013, Hersha paid $16.7 million for the 75-room property, which is located in Miami Beach’s Art Deco Historic District. The deal also includes the sale of Hersha’s Duane Street Hotel in New York City for $20 million and the company announced it was exiting 50% ownership of two hotels in Boston.
“The anticipated sales of the Blue Moon Hotel & Duane Street Hotel at very attractive pricing highlights the inherent value of Hersha’s Miami Beach and New York City portfolios,” said Jay H. Shah, Hersha’s Chief Executive Officer. “And [it] demonstrates the strong domestic and international interest from public and private groups seeking premier real estate in top U.S. gateway markets. “
Shah said the sale of the Blue Moon Hotel and the three other properties represents a significant gain on Hersha’s investment and simplified the company’s structure. “Each of these transactions occurred as a result of our strategy to reduce our leverage profile by selling lower EBITDA-producing hotels for valuations exceeding those ascribed to our current stock valuation,” Shah said.
He noted Hersha will realize taxable gains of approximately $31 million.
Hotel transaction volume is on the rise heading into the first quarter of 2020, according to a Q4 2019 report by hospitality advisory firm The Plasencia Group. “Assets with good locations and flags continue to attract record amounts of investor interest and command value premiums,” the report states. “With so many buyers interested in assets across Florida, it is still an opportune time to consider selling.”