Hersha Hospitality Trust entered into a definitive agreement to purchase the 148-room Parrot Key Hotel & Resort ("Parrot Key") in Key West, Fla., for $100 million.
Parrot Key is situated on five oceanfront acres and is the most recently built waterfront hotel boasting the largest rooms and the most oceanfront suites in Key West. The hotel operated at an average daily rate ("ADR") of $230.52 and occupancy of 92.3 percent in 2013.
The acquisition of Parrot Key will be funded with cash on hand and with a portion of the Company's $250 million senior unsecured term loan. The Parrot Key transaction is expected to close during the second quarter and is subject to a variety of closing conditions, including the Company's completion of due diligence. As a result, there can be no assurance that the Company will be able to consummate the acquisition on the schedule or on the terms described.