Hersha Hospitality Trust (Hersha or the Company), owner of luxury and lifestyle hotels in coastal gateway and resort markets, and KSL Capital Partners, LLC (KSL), a leading investor in travel and leisure businesses, have announced a definitive merger agreement, entered into on August 27, 2023, under which affiliates of KSL will acquire all of the outstanding common shares of Hersha for US$10.00 per share in an all-cash transaction valued at approximately US$1.4 billion. The purchase price represents a premium of approximately 60% over Hersha’s closing share price on August 25, 2023, the last full trading day prior to this announcement. The transaction is expected to close in the fourth quarter of 2023, subject to customary closing conditions.
Latham & Watkins LLP is advising the Transaction Committee of Hersha’s Board of Trustees in the transaction with a corporate deal team led by Los Angeles/New York partner Julian Kleindorfer and Chicago partner Owen Alexander, with associates Jennifer Wong, Lucy Chauvin, and Brian Baloun. Advice was also provided on real estate matters by Chicago partner Gary Axelrod, with associates Euna Park and Rebekah Biddle; on certain corporate matters by Los Angeles partner Bradley Helms; on finance matters by Chicago partner Noah Weiss, with associate Rob Rogowski; on litigation matters by Orange County partner Michele Johnson, with associate Ryan Walsh; executive compensation and benefits matters by Los Angeles partner David Taub, with associate Joseph Benedetto; on labor matters by Chicago partner Nineveh Alkhas, with associates Laura Waller and Jocelyn Wexler; on tax matters by Century City partner Ana O'Brien and Century City counsel William Kessler; on intellectual property matters by New York partner Jeffrey Tochner, with associate Dewey Kang; on environmental matters by Los Angeles/Houston partner Joshua Marnitz; on data privacy matters by Bay Area partner Robert Blamires, with associate Jennifer Howes; and on capital markets matters by Washington, D.C./New York partner Abigail Smith, with associate Abby Timmons.