Denver-based KSL Capital Partners has expanded its scale, officially acquiring Maryland-based Hersha Hospitality Trust in a $1.4 billion merger.
A Tuesday filing with the U.S. Securities and Exchange Commission submitted by Hersha shows the merger, in which KSL affiliates acquired all of Hersha’s outstanding common shares, has officially closed.
The deal comes after a majority of Hersha shareholders — some 28.7 million — voted to approve KSL’s merger proposal in a special meeting held Nov. 8. The deal was first announced in August, when both companies entered into a definitive merger agreement.
In conjunction with the closing, Hersha requested that the New York Stock Exchange suspend trading of its common and preferred shares and delist the company from the NYSE. The NYSE subsequently notified the SEC of its intention to remove Hersha from listing and registration on the Exchange upon market open on Dec. 11.
With the deal, KSL expands its holdings in the burgeoning luxury lifestyle segment, absorbing Hersha’s portfolio of 25 hotels and resorts, totaling 3,811 rooms in New York, Boston, Philadelphia, South Florida, California and Washington, D.C.
“Hersha and its team have built an impressive, curated portfolio of experiential luxury and lifestyle hotels and resorts in strategic markets. With KSL’s extensive track record investing in high-quality assets in dynamic metropolitan markets across North America and around the world, we are uniquely suited to position the business for further success over the long term,” Marty Newburger, partner at KSL, said in a statement when the deal was first announced.
KSL declined to comment on the merger at this time.