Shearman & Sterling represented Citigroup, N.A., as administrative agent, in connection with a $475 million senior unsecured credit facility for Hersha Hospitality Trust. The facility includes an accordion feature, enabling the facility to be increased to $875 million in the aggregate. The company intends to use the net proceeds from the facility to repay borrowings outstanding under an existing credit facility and for general corporate purposes.
Hersha Hospitality Trust is a self-advised real estate investment trust in the hospitality sector which owns and operates high quality hotels in gateway markets and select destination resorts. The company’s 51 hotels, totaling 7,804 rooms, are located in New York, Washington, DC, Boston, Philadelphia, Miami and select markets on the West Coast. Over the past few years, the company has focused on reducing its presence in the New York metropolitan area, and diversifying into higher growth locations in Washington, DC and Boston and on the West Coast.