Hersha Hospitality Trust has signed a deal worth $505 million with an undisclosed party to divest seven of its non-core Urban Select Service properties located outside of New York.

The consideration comes to nearly $360,000 per key, said the publicly-listed US-based real estate investment trust in the hospitality sector.

The deal includes Courtyard Brookline, Hampton inn – Philadelphia, Hilton Garden Inn M Street, Hampton Inn – Washington D.C., Courtyard Sunnyvale, Courtyard Los Angeles Westside, and TownePlace Suites Sunnyvale.

Hersha Hospitality Trust plans to use the proceeds from the deal to provide immediate liquidity for a considerable net debt reduction of around $460 – $480 million.

Upon closing of the sale, the real estate investment trust will own 26 hotels in six major destination markets in the US.

The deal, which is subject to customary conditions, is likely to close in Q3 2022.

  Hersha Hospitality Trust, USA