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UNITE HERE Local 26 Releases Report Critical of KSL Capital Partner Purchase and Multiple Financings of the Hersha Hospitality REIT

BOSTON--(BUSINESS WIRE)--On November 28, 2023, KSL Capital Partners VI closed on the purchase of the publicly traded hotel REIT Hersha Hospitality Trust in a roughly $1.4 billion deal.

With over $250 million in added costs, and below-appraisal property sales, the report asks when KSL Capital Partners VI Limited Partners are likely to see a return on this investment.

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UNITE HERE Local 26 issued a report today that questions key decisions made by KSL Capital Partners in its financing, refinancing and re-refinancing of large portions of the Hersha Hospitality Portfolio.

The report finds that Hersha has paid over $169 million in financing and closing costs related to the transactions, and an additional $93.7 million in anticipated golden parachute payments to Hersha executives.

The report also finds that the five portfolio properties that KSL has sold brought in $72.9 million less than their “as is” appraisals and $120.2 million less than their “stabilized” appraisals.

With over $250 million in added costs, and below appraisal property sales, the report asks when Limited Partners are likely to see a return on this investment.

The report should raise questions for LPs in KSL Capital Partners VI as well as potential LPs in KSL's most recent fund: KSL Credit Opportunities V.

Read more at: https://www.local26.org/ksl-alert/

Contacts

Jeff Nelson
jnelson@unitehere.org

Industry:

UNITE HERE

Release Summary
A UNITE HERE Local 26 report questions key decisions made by KSL Capital Partners in its financing and refinancing of multiple Hersha Portfolio hotels
Release Versions
English

Contacts

Jeff Nelson
jnelson@unitehere.org

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