Hersha Hospitality Trust acquired the Annapolis Waterfront Hotel, an Autograph Collection Hotel, for $41.5m. The 150-room property, located three blocks from the main gate of the United States Naval Academy traded for $276,667 per room key. The property offers 15,000 sq ft of function space, half of which is allocated to the hotel’s outdoor terrace, along with a leased waterside restaurant and bar.
“We are pleased to acquire the Annapolis Waterfront Hotel, expanding our Mid-Atlantic cluster, at an attractive economic capitalization rate of 8.7 percent and 10.4x EBITDA multiple. The location of the hotel in the pedestrian scale core of the city is irreplaceable,” said Jay Shah, CEO of Hersha. “We have been active on the disposition front over the past two years, selling 19 mature, stabilized hotels at an average economic capitalization rate of 5.9 percent and 15.1x EBITDA multiple. This acquisition allows us to replace a significant portion of the EBITDA from our 2018 sales and refinancing efforts.”
