AH_224_Dec-Jan-2024
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ersha Hospitality Trust and KSL
Capital Partners, LLC, have finalized
KSL’s acquisition of the REIT for
approximately $1.4 billion. As of Nov. 28,
Hersha became a private company and
was delisted from the New York Stock
Exchange.
The companies entered a definitive
merger agreement on Aug. 27 under
which affiliates of KSL acquired all of the
outstanding common shares of Hersha for
$10 per share in an all-cash transaction.
The companies filed paperwork with the
Securities and Exchange Commission on
Nov. 28 to make it official.
The independent transaction committee
of Hersha’s board of trustees recommended
the merger and the board unanimously
approved it, according to Hersha. A special
meeting of shareholders was held Nov. 8 to
give final approval to the deal.
The purchase price represents a
premium of approximately 60 percent
over Hersha’s closing share price on Aug.
25, the last full trading day prior to the
initial announcement, according to Hersha.
Hersha shareholders will receive $10 in
cash for each common share they own, and
holders of Hersha’s 6.875 percent Series
C Cumulative Redeemable Preferred
Shares, 6.50 percent Series D Cumulative
Redeemable Preferred Shares and 6.50
percent Series E Cumulative Redeemable
Preferred Shares will receive $25 in cash,
plus any accrued and unpaid dividends to
which they are entitled, for each preferred
share they own.
“This transaction provides our
shareholders with immediate and
certain value at a substantial premium
to our public valuation,” said Jay Shah,
Hersha’s executive chairman. “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.”
Hersha owns and operates luxury and
lifestyle hotels in coastal gateway and resort
markets. Its portfolio includes 25 hotels with
3,811 rooms in New York, Washington D.C.,
Boston, Philadelphia, South Florida and
California.
“We are proud of the work our team
has done to build on Hersha’s culture
and capabilities and make the company
what it is today,” Neil Shah, Hersha’s
CEO, said. “This transaction is a result
of our deliberate actions to focus on key
gateway markets and lifestyle and leisure
properties, as well as our work to create
a concentrated portfolio consisting of
some of the highest quality hotels in their
respective markets.”
Hasu Shah, Hersha’s chairman emeritus,
founded the company in 1984 with the
purchase of a single hotel in Harrisburg,
Pennsylvania. In 1998, the company went
public as a REIT.
Hersha, KSL Capital finalize acquisition
The REIT has now gone private, delisted from the NYSE
Hersha Hospitality Trust and KSL Capital Partners,
LLC, have finalized KSL’s acquisition of the REIT
for approximately $1.4 billion. From left are Hersha
Hospitality Trust’s Jay Shah, executive chairman; Neil
Shah, CEO; and Marty Newburger, a partner at KSL
Capital Partners.
wo U.S.-based Asian American hoteliers
are planning to develop a $1.3 billion
luxury J. W. Marriott International resort
in Dubai, United Arab Emirates. The JW Marriott
Al Marjan Island Resort & JW Marriott Residenc-
es Al Marjan Island, which is being developed
by WOW Resorts founded by Bhupender 'Bruce'
Patel and Anwar Ali Aman, is scheduled to open
in 2026.
Patel and Aman held an unveiling ceremony
for the project on Nov. 15 along with Abdulla Al
Abdouli, CEO for Marjan, master-developer of
freehold property in Ras Al Khaimah including
Al Marjan Island, and representatives of JW
Marriot. Designed by Beverly Hills Architect
Tony Ashai with Dubai-based Lead Consultants
Architecture Design Unit, the project will include
524 residences with one to four bedrooms as
well as penthouses, along with 300 guest rooms.
It will have seven dining venues, pools and a
fitness center.
The new WOW Resorts property is near Ras
Al Khaimah International Airport and Dubai
International Airport. Marjan Island Resort in-
cludes four man-made islands with more than 7
kilometers of beaches and several large hotels,
spas and golf courses. The resort expects to
see 5 million visitors annually.
“Our collaboration with JW Marriott and our
venture on Al Marjan Island represents a new
chapter in our journey,” Patel said. “With the
demand for waterfront living on the rise, we
are committed to optimizing and elevating the
experiences of all our cherished guests and resi-
dents as we embark on this remarkable project in
the UAE, set on the enchanting Al Marjan Island,
a prime investment destination in the region.”
Patel and Aman are partners in Memphis-based
White Oak Group, with a portfolio of about 300
businesses including hotels, restaurants and gas
stations across the U.S. Patel’s parents, including
his father Ramesh Motiram Patel, come from the
Indian village of Baben in Gujarat state.
In addition, Patel is co-founder of Wealth
Hospitality, formed in December 2019 along
with his partner Chico Patel. Bruce was Tupelo,
Mississippi-based Fusion Hospitality’s CEO and
Chico was CEO at Ridgeland-based Heritage
Hospitality when the two companies merged in
December. Along with hotels, Wealth Hospi-
tality develops multi-family and assisted living
facilities.
Asian Americans to develop $1.3 billion resort in Dubai, UAE
The JW Marriott resort, featuring residences and 300
hotel rooms, is scheduled to open in 2026
WOW Resorts, founded by U.S.-based Bhupender
'Bruce' Patel, left in right hand photo, and Anwar
Ali Aman, recently unveiled plans to develop the
JW Marriott Al Marjan Island Resort & JW Marriott
Residences Al Marjan Island for $1.3 million in
Dubai, United Arab Emirates.
www.asianhospitality.com
10 ASIAN HOSPITALITY DECEMBER/JANUARY 2024
News
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