PHILADELPHIA–(BUSINESS WIRE)–Hersha Hospitality Trust (NYSE: HT, “Hersha” or the “Company”), owner of upscale hotels in urban gateway markets and coastal destinations, announced that the Company has closed on a new $ 475 million senior unsecured credit facility (the “Facility”) that is expandable to $ 875 million. The Facility consists of a $ 250 million senior unsecured revolving line of credit (“Revolving Credit Facility”) and a $ 225 million senior unsecured term loan (“Term Loan”). This new Facility amends and restates the Company’s existing credit facility.

“We appreciate our lending group’s continued support of Hersha’s growth initiatives and strategic direction. The strength of the new Facility reflects the significant capital recycling efforts undertaken to optimize our portfolio and balance sheet along with providing additional financial flexibility to execute our current business plans. We were particularly encouraged by the oversubscription of the Facility by the bank group. The level of interest demonstrated confidence in the inherent value of our high quality hotel portfolio. Furthermore, the new Facility and recent refinancing efforts address the entirety of our debt maturities through 2018 and improves the Company’s overall weighted average cost of capital,” stated Jay H. Shah, Chief Executive Officer.

The interest rate for the Revolving Credit Facility is based on a pricing grid, with a rate range of 150 to 225 basis points over LIBOR, based on the Company’s leverage ratio. Pricing for the Term Loan is 145 to 220 basis points over LIBOR based on the Company’s leverage ratio. The Company will utilize the Term Loan to refinance existing indebtedness of approximately $ 210.5 million on the existing credit facility, repayment of transaction expenses, general corporate purposes, potential acquisitions and capital expenditures.

The Facility was arranged by Citigroup Global Markets Inc. and Wells Fargo Securities, LLC, as Joint Lead Arrangers and Joint Bookrunners. Citibank, N.A. is the Administrative Agent and Wells Fargo Bank, N.A. is the Syndication Agent. Bank of America, N.A., Compass Bank, PNC Bank, National Association and TD Bank, N.A. acted as Joint Lead Arrangers and Co-Documentation Agents, BMO Harris Bank NA, Fifth Third Bank, Manufacturers and Traders Trust Company, Regions Bank and U.S. Bank National Association acted as Co-Documentation Agents and Santander Bank, N.A. and The Provident Bank acted as Senior Managing Agents. Other lenders under the Facility included Land Bank of Taiwan, NY Branch, Beneficial Mutual and Savings Bank, First Commercial Bank, New York Branch, Raymond James Bank, N.A., Goldman Sachs Bank USA and Morgan Stanley Bank, N.A.

Hersha Hospitality Trust (HT) is a self-advised real estate investment trust in the hospitality sector, which owns and operates high quality upscale hotels in urban gateway markets and coastal destinations. The Company’s 51 hotels totaling 7,804 rooms are located in New York, Washington, DC, Boston, Philadelphia, South Florida and select markets on the West Coast. The Company’s common shares are traded on The New York Stock Exchange under the ticker “HT”. For more information on the Company, and the Company’s hotel portfolio, please visit the Company’s website at

Forward Looking Statement

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, and, as such, may involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance to differ from those reflected in the forward-looking statement. For a description of these factors, please review the information under the heading “Risk Factors” included in Hersha Hospitality Trust’s filings with the U.S. Securities and Exchange Commission Annual Report on Form 10-K for the year ended December 31, 2016 and subsequent reports filed by the Company with the Securities and Exchange Commission from time to time.

UnsecuredCredit – BingNews